Shares of prominent U.S. asset managers weakened before the opening bell on Thursday after Blue Owl announced restrictions on investor withdrawals from two of its retail-focused vehicles. The announcement coincided with notable declines in peer stocks, underlining investor unease.
In premarket trading, Apollo Global, Blackstone and Ares Management fell by 4.8%, 4.2% and 3.4%, respectively. KKR shares declined 4.1% and Carlyle Group slipped 3.4%. Blue Owl itself registered the largest drop among those named, tumbling 8.8%.
Blue Owl said it had placed caps on redemptions after redemption requests reached 40.7% of shares in its technology-focused fund, Blue Owl Technology Income Corp (OTIC), and 21.9% of shares in its larger Blue Owl Credit Income Corp (OCIC). The funds' managers implemented the withdrawal limits in response to those requests.
Market participants flagged the restrictions as potentially reinforcing doubts about the private credit industry. The article noted that investors have already been pulling billions from the sector and that managers have, in some cases, moved to limit redemptions.
Context and implications
The immediate market reaction focused on share-price movements across several asset management firms, with Blue Owl's decision cited as a catalyst for premarket selling. The size of the redemption requests in the two Blue Owl funds - particularly the roughly 40.7% requested in OTIC - was highlighted as the proximate cause for the caps.
While the announcement was limited to the two named funds and the stated redemption figures, the reporting linked the event to broader unease surrounding private credit firms, noting prior instances of investor outflows and manager-imposed withdrawal restrictions.
What we know
- Blue Owl capped withdrawals after investors requested redemption of 40.7% of OTIC and 21.9% of OCIC.
- Shares of Apollo Global, Blackstone, Ares Management, KKR and Carlyle Group fell between about 3.4% and 4.8% in premarket trading; Blue Owl fell 8.8%.
- The move is being seen in the context of ongoing investor redemptions and previously reported limits on withdrawals in parts of the private credit market.