Blue Owl Capital restricts fund redemptions, causing a sharp decline in the stock price of alternative asset management companies

Gelonghui February 20 | On February 19, the stock prices of alternative asset management companies collectively plummeted. Blue Owl Capital Inc. closed down 5.93%. Meanwhile, its competitors Ares Management fell 3.08%, Apollo Global Management dropped 5.66%, Blackstone declined 5.37%, KKR decreased 1.85%, and TPG fell 7.01%. The wave of sell-offs also affected Europe. As U.S. peers declined, CVC Capital Partners Amsterdam’s stock price fell 3.26%, and Partners Group Switzerland’s stock price dropped 5.11%.

Earlier, Blue Owl Capital announced a redemption restriction on one of its private credit funds aimed at retail investors. This decision by Blue Owl highlights the core risk faced by retail investors entering the private credit space: such funds have much lower liquidity than public markets, and asset management companies have the right to prevent investors from withdrawing cash.