Private credit had a good run. Low defaults, strong yields, institutional money pouring in. Then UBS showed up with a research note, and things got complicated for Blue Owl Capital.
UBS analysts have warned that private credit default rates could spike to roughly 15%, with particular concern aimed at funds with heavy exposure to software lending. Blue Owl, one of the sector’s most prominent players, sits squarely in that crosshair.
The numbers tell the story
In the quarter ending June 2026, Blue Owl faced $4.7 billion in total withdrawal requests across its funds. The largest Blue Owl fund bore the brunt of it, absorbing $3.6 billion in redemption requests, equivalent to 19% of that fund’s assets.
In April 2026, redemption requests on Blue Owl’s largest fund reached 21.9%. Its technology-focused fund saw requests exceed 40% earlier this year.
