Private Credit Poster Child Blue Owl Hits Record Low
The drop capped weeks of declines fueled by mounting concerns over the health of the $1.8 trillion market.
Private credit poster child Blue Owl Capital closed at a record low Monday, capping weeks of declines fueled by mounting concerns over the health of the $1.8 trillion market. The stock fell 1.4% to close at $8.45, which is below its previous nadir, set in late 2022.
The stock hit a record intraday low before the long holiday weekend after the firm said it will limit redemptions from two of its private credit funds following a surge in withdrawal requests. Business development companies, a type of private credit fund for retail investors, have been inundated with such requests amid growing anxiety around the market’s lending practices and exposure to businesses that are vulnerable to artificial intelligence disruption.