Blue Owl Caps Private Credit Fund Redemptions Again as AI Fears Drive Investor Withdrawals

Blue Owl Capital has capped redemptions from two of its private credit funds at 5% for the third consecutive quarter, as artificial intelligence concerns continue to spark unprecedented investor flight from its flagship technology lending vehicle. The roughly $5 billion Blue Owl Technology Income Corp (OTIC), the largest non-traded fund focused on technology lending, received withdrawal requests for 39% of its shares in the third quarter of 2026, a slight acceleration from 38.1% requested the prior quarter. This compares sharply with redemption requests averaging 10%–15% at industry peers including Blackstone, Apollo Global, Ares, and BlackRock, underscoring how severely AI-related anxieties have destabilized the technology credit segment.