Blue Owl, a private credit firm based in the United States, announced on April 2, 2026, that it is limiting withdrawals from its funds after investors requested to withdraw $5.4 billion in the first quarter. This surge in redemption requests is attributed to concerns over advancements in artificial intelligence (AI) and the recent downturn in the market, which have made investors wary of valuations and lending standards. Approximately 40.7% of shares in the $6.2 billion Blue Owl Technology Income Corp fund and 21.9% of shares in the $36 billion Blue Owl Credit Income Corp fund were requested for withdrawal, marking some of the highest quarterly redemption requests in the industry. As a result, Blue Owl plans to fulfill only 5% of these requests, citing a significant disconnect between public sentiment and the underlying performance of its portfolio. The firm’s shares fell to an all-time low of $7.95 amid these developments, reflecting broader struggles faced by private credit firms like KKR, Apollo, and BlackRock, which have also limited redemptions recently. Analysts warn that private credit investments are illiquid and may not be suitable for retail investors looking for quick access to their funds.