Blue Owl Capital restricts fund redemptions, triggering a sharp decline in alternative asset management company stocks

Blue Owl Capital Inc. shares closed down 5.93%. Meanwhile, its competitors saw declines as well: one exchange dropped 3.08%, another exchange fell 5.66%, a third exchange decreased by 5.37%, another exchange slipped 1.85%, and another exchange company dropped 7.01%. The sell-off wave spread to Europe. As their US peers declined, one exchange’s Amsterdam shares fell 3.26%, and Partners Group’s Swiss shares dropped 5.11%. Previously, Blue Owl Capital announced redemption restrictions on one of its private credit funds aimed at retail investors. This decision by Blue Owl Capital highlights a core risk faced by retail investors entering the private credit sector: such funds are far less liquid than public markets, and asset management firms have the authority to prevent investors from withdrawing cash.