Private credit roundup: Blue Owl redemptions ease, tech and refinancing risks persist

Investors withdrew $4.2 billion from two Blue Owl Capital non-traded private credit funds in Q3, down from $4.7 billion in Q2 and $5.4 billion in Q1. Blue Owl Credit Income Corp. saw requests drop to 16.8% of shares from 18.8%. The technology-focused Blue Owl Technology Income Corp. faced higher withdrawal pressure, with investors seeking to pull $1.1 billion, or 39% of shares, up from 38.1% in the previous quarter.

Despite these challenges, the broader US market showed signs of easing redemption pressure. Goldman Sachs' $18.2 billion GS Credit fund reported redemption requests at 2% of shares, down from 3.2% in Q2, while generating about $400 million of gross inflows. However, the issue of refinancing risks looms large as loan maturities approach, particularly around 2028.

Metrics Credit Partners, an Australian non-traded private credit manager, froze redemptions in some of its unlisted funds following disagreements with auditor KPMG over the valuation of commercial real-estate investments. The country's corporate regulator is closely monitoring the sector due to concerns over valuation, liquidity, governance, and transparency practices.