Private Credit Market Rattled as Blue Owl Tightens Investor Liquidity

‘Is this a “canary-in-the-coalmine” moment, similar to August 2007?’ asks top economist Mohamed El-Erian.

Wall Street in New York on April 4, 2025. Samira Bouaou/The Epoch Times

Shares of New York investment firm Blue Owl Capital fell on Feb. 19 after the private credit group said it would block investor withdrawals from its debut private retail fund, reversing earlier plans to open redemptions this quarter.

The alternative asset manager sold $1.4 billion of loan assets held across three of its private debt funds to four North American pension and insurance investors. The loans were given to 128 companies across 27 industries, with 13 percent concentrated in software and internet firms.