Blue Owl’s Private Credit Withdrawal Clampdown Rattles Markets After $1.4B Loan Sale
Shares of Blue Owl Capital dropped roughly 4% in premarket action Friday, as the private credit firm halted quarterly withdrawals on a smaller retail debt fund and lined up $1.4 billion in loan sales to cover redemptions. The stock closed down almost 6% on Thursday and has now plunged more than 36% in 2025. “Sentiment and headlines” are what’s moving the stock, said Piper Sandler analyst Crispin Love. Investors are zeroing in on the shift as a live demonstration for private credit—those loans made outside the traditional banking system and usually stashed in funds that don’t offer daily trading—just as they’re ramping up scrutiny of how managers value hard-to-sell assets. Economist Mohamed El-Erian didn’t mince words, calling it a possible