Blue Owl Capital (NYSE:OWL) faced a surge in investor withdrawal requests that intensified after a UBS research note raised alarms about potential stress in private credit.

The warning put fresh focus on funds with sizable exposure to software-related lending, an area where Blue Owl has meaningful positioning.

The note stated that UBS analysts see a scenario where default rates in private credit climb to about 15%, a level that would mark an unusually severe test for the asset class. The analysts tied their concern to concentration risk, arguing that heavy lending to one industry can turn isolated problems into synchronized losses.

Redemption demand at Blue Owl built quickly in the months leading up to July. For the quarter that ended in June 2026, total withdrawal requests across the firm’s funds reached $4.7 billion.

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Blue Owl’s largest fund accounted for most of that pressure, with $3.6 billion of requests, or about 19% of the vehicle’s assets. 

The firm’s technology-oriented fund, Blue Owl Technology Income Corp, saw even greater relative demand earlier in 2026, with requests topping 38% or $1.1 billion. 

Even with heavy demand, payouts are limited by the structure of many private credit products. The firm limited redemptions to its standard 5% quarterly cap, saying most requests came from investors who had already sought withdrawals in the first quarter, with "limited new participation" from additional investors.

Redemption Requests Spike

Other private credit managers have continued to see elevated redemption requests in the second quarter.

So far in Q2, Apollo Global Management (NYSE:APO) has limited withdrawal requests from its non-traded private credit fund, Apollo Debt Solutions, after investors asked to withdraw 16.8% of their shares.

Cliffwater LLC, and Partners Group also saw elevated redemption requests during the second quarter.

Meanwhile, Goldman Sachs (NYSE:GS) is bucking the trend. The firm received redemption requests under the 5% repurchase cap, with requests totaling about 3.24% of outstanding shares in the second quarter.

The firm honored all redemption requests in full and added $275 million in gross inflows during the quarter.

BlackRock, Ares Management, JPMorgan, and Morgan Stanley all capped redemptions in the first quarter.

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