Blue Owl, which you may remember closed one of its private equity funds earlier this year, has now limited redemptions at two of its private credit funds, its flagship OCIC fund and its tech fund, OTIC. CNBC’s Leslie Picker reports:

Blue Owl is experiencing elevated redemption requests for two of its private credit funds, according to letters to shareholders issued Thursday.

The firm’s flagship OCIC fund, with about $36 billion in assets under management, received redemption requests of about 21.9% of shares outstanding during the first quarter, the firm said. Blue Owl’s smaller, tech-oriented fund, OTIC, received redemption requests of 40.7% during the same period, it said.

In both of the funds, Blue Owl opted to cap requests at 5%. Blue Owl attributed the higher-than-usual requests to “heightened market concerns around AI-related disruption to software companies.”

“We continue to observe a meaningful disconnect between the public dialogue on private credit and the underlying trends in our portfolio,” Blue Owl said in the shareholder letters.

Action Line: Redemption limitations are part of the contract for many private credit funds, so investors shouldn’t be surprised by them, but as Bloomberg’s Olivia Fishlow reports, the “surge in withdrawal requests” at Blue Owl is “unprecedented among major firms.” With private equity and credit headed for 401(k)s, be sure you know what you’re investing in. And when you want more investment freedom, consider an IRA rollover. Email me at ejsmith@yoursurvivalguy.com when you want help. And click here to subscribe to my free monthly Survive & Thrive letter.

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Originally posted on Your Survival Guy.