The asset manager restricted withdrawals from its private retail debt fund amid redemptions
Industry rivals like Blackstone also facing significant investor outflows
Technology loans account for nearly a third of all private loans, raising AI disruption concerns
📖 Full Retelling
Blue Owl Capital shares tumbled below their listing price in New York on March 3, 2026, amid a broader sell-off for private capital groups triggered by investor redemptions and growing concerns about their exposure to software companies vulnerable to AI disruption. The asset manager's shares fell as much as 9 percent to $9.73 on Tuesday, pulling them below the $10 at which they were priced when Blue Owl went public in 2021 through a Spac deal, though they recovered somewhat by the end of trading. The decline comes as Blue Owl last month permanently restricted cash withdrawals from its inaugural private retail debt fund, reneging on a plan to reopen to redemptions as part of a strategy to return capital to investors instead. While Blue Owl managed to sell approximately one-third of the fund's assets close to their face value, the policy reversal highlighted the risks facing individual investors who have increasingly poured money into vehicles with limited liquidity options.
🏷️ Themes
Private credit market, AI disruption, Investor redemptions, Market liquidity
Private credit is an asset defined by non-bank lending where the debt is not issued or traded on the public markets. "Private credit" can also be referred to as "direct lending" or "private lending". It is a subset of "alternative credit".
Blue Owl Capital Inc. is an American alternative investment asset management company that is listed on the New York Stock Exchange under the ticker symbol: "OWL". Headquartered in New York City, it has additional offices around the world, including London, Dubai, and Hong Kong.
Degree of variation of a trading price series over time
In finance, volatility (usually denoted by "σ") is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.
Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derive...
Blue Owl slides below listing price as private credit worries mount on x (opens in a new window) Blue Owl slides below listing price as private credit worries mount on facebook (opens in a new window) Blue Owl slides below listing price as private credit worries mount on linkedin (opens in a new window) Blue Owl slides below listing price as private credit worries mount on whatsapp (opens in a new window) Save Blue Owl slides below listing price as private credit worries mount on x (opens in a new window) Blue Owl slides below listing price as private credit worries mount on facebook (opens in a new window) Blue Owl slides below listing price as private credit worries mount on linkedin (opens in a new window) Blue Owl slides below listing price as private credit worries mount on whatsapp (opens in a new window) Save Antoine Gara , George Steer and Julia Rock in New York Published March 3 2026 Updated March 3 2026 Jump to comments section Print this page Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Shares in Blue Owl Capital tumbled below their listing price amid a sell-off for private capital groups triggered by investor redemptions and fears over their exposure to software companies that are vulnerable to AI disruption. Blue Owl’s shares fell as much as 9 per cent to $9.73 on Tuesday — pulling them below the $10 at which they were priced when the asset manager went public in 2021 through a Spac deal — before recovering somewhat. The shares are down about 50 per cent over the past 12 months. The accelerating drop for Blue Owl underscores mounting investor concerns about private capital companies, which have lent heavily to groups whose businesses are exposed to advances in AI. Blue Owl last month permanently restricted cash withdrawals from its inaugural private retail debt fund, reneging on a plan to reopen to redemptions this quarter as part of a plan to instead return capital to inves...
