Alts sink after Blue Owl limits withdrawals at two private credit funds

Shares of Blue Owl OWL.N slide 8.4% to $7.98 premarket after private credit firm limits withdrawals at two of its retail-focused funds

Peers Apollo Global APO.N down 4.4%, KKR KKR.N falls 4.4%, Blackstone BX.N slides 4.2%, Carlyle Group CG.O down 3.8%

Investors requested to redeem 40.7% of the shares in technology-focused Blue Owl Technology Income Corp, and 21.9% in larger fund Blue Owl Credit Income Corp

OWL had earlier permanently halted redemptions at its fund, Blue Owl Capital Corp II

Credit concerns in recent months have drawn fresh scrutiny to the roughly $2 trillion private credit market, as investors question the health of loan portfolios

Private credit funds managed by BlackRock BLK.N, Ares ARES.N and Morgan Stanley MS.N have also capped redemptions over the last few months to avoid forced sales of illiquid assets

Shares of OWL have fallen 41% YTD, while KKR is down 28.3%, BX 25.8% and CG 19.8%