Blue Owl's Redemption Requests Drag Down Alternative Asset Manager Stocks

By Elias Schisgall

Shares of several major alternative asset managers fell after Blue Owl Capital limited redemptions to 5% following investors' requesting to pull about $5.4 billion out of two private-credit funds.

In addition to Blue Owl, which was recently down 4.5% to $8.32 in Thursday morning trading, shares of Apollo Global Management fell 4.6% at $105.21, while Ares Management was down 4.1 at $101.42. Blackstone Shares fell 3.1%, KKR was off 1.7%, and BlackRock was down 0.9%.

Investors collectively requested to pull out 22% of Blue Owl's $36 billion Blue Owl Credit Income fund and 41% of a separate fund focused on the technology sector.

The flood of redemption requests adds to growing outflows out of private-credit funds, as investors worry about their exposure to software firms that could be disrupted by artificial intelligence.

"Tender activity was elevated across the [private-credit] industry in the first quarter of 2026, reflecting a period of heightened negative sentiment toward the asset class that has intensified as peers have reported tender results," Blue Owl said in a letter to investors.

Although some firms such as Apollo, Ares and BlackRock have continued to limit redemptions at 5% every quarter, others such as Blackstone and Cliffwater have granted requests for more than 5% of the fund.

Write to Elias Schisgall at [e-mail]

(END) Dow Jones Newswires

04-02-26 1051ET