"In the fourth quarter of 2025, redemption requests across the industry were up nearly 3 times from the quarter before at 4.5% of fund net asset value, according to Fitch Ratings. Blue Owl's tech-focused fund had by far the most redemption requests of the non-traded funds tracked by Fitch, at 15.4%, and has become the avatar of private credit's exposure to the "software-apocalypse.""
"With market watchers concerned that generative AI will make many software-as-a-service companies obsolete, the general angst about private credit over the past few months has now found a target in software loans."
"During its February earnings call, Blue Owl's CFO Alan Kirshenbaum looked to assuage concerns by stating that software loans make up only 8% of the firm's total assets under management."
Blue Owl, a major private credit investor focused on software loans, has experienced significant stock decline and redemption requests following concerns about AI disruption to software companies. Fourth-quarter redemption requests across the private credit industry tripled to 4.5% of fund net asset value, with Blue Owl's tech-focused fund seeing the highest redemptions at 15.4%. Generative AI threatens to make many software-as-a-service companies obsolete, creating widespread anxiety about private credit's software exposure. Blue Owl's leadership stated software loans represent only 8% of total assets under management. Other major private credit executives, including those from Apollo and Ares, have begun publicly defending their software portfolios against investor concerns.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]