Blue Owl Capital has decided to maintain a 5% quarterly withdrawal limit for two of its private credit funds. This decision comes after redemption requests fell by a few percentage points in the second quarter but remained substantially above the cap.

Redemption Requests

In shareholder letters released on Thursday, the New York-based firm said investors sought to withdraw $4.7 billion from the two funds in the second quarter, compared with $5.4 billion in the prior quarter. Blue Owl shares rose about 2% in premarket trading.

While market participants expect withdrawal requests to remain above 5% for a few more quarters, some Wall Street analysts say underlying redemption trends suggest the second quarter may mark the peak. Withdrawal requests at the $4.9-billion technology-focused Blue Owl Technology Income Corp (OTIC) fund fell to 38.1% in the second quarter from 40.7% in the prior quarter.

The flagship $33.8-billion Blue Owl Credit Income Corp (OCIC) fund saw redemption requests fall to 18.8% in the quarter from 21.9% in the previous quarter. Roughly 90% of investors remained invested in OCIC, the fund said, adding that the shareholder base that sought redemptions remained largely unchanged, with a “limited” number of investors making repurchase requests for the first time.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.