Author：Wall Street CN

Shares of Blue Owl, the epicenter of the private lending storm, fell 1.4% on Monday to close at $8.45, a record low and below its previous low set at the end of 2022, driven by growing concerns about the health of the $1.8 trillion private lending market.

Previously, on Thursday of last week, Blue Owl announced that it was restricting redemptions from two of its private credit funds after a surge in redemption requests, and its stock price hit a record low during the day.

Blue Owl went public in May 2021 through a special purpose acquisition company (SPAC), a transaction formed by the merger of Owl Rock Capital Group and Dyal Capital Partners.

Business Development Companies (BDCs), a type of private credit fund targeting retail investors, are currently facing a surge in redemption requests due to growing market anxiety about their lending practices and exposure to companies vulnerable to artificial intelligence.

Blue Owl's stock has become a particularly popular bet on the continued deterioration of private credit due to its high exposure to software companies that may be replaced by artificial intelligence.

Blue Owl has just experienced its biggest quarterly drop ever and has fallen for eight consecutive months. Bearish bets on the stock reached an all-time high in early March.

Blue Owl owns multiple BDCs, a key channel for individual investors to participate in private lending. One of its technology-focused funds saw redemption requests exceeding 15% in the last quarter. During this period, the company had planned to merge two BDCs, but was forced to cancel the move due to concerns that it could cause significant losses for some investors.

In February, Blue Owl announced it had sold $1.4 billion in loans to meet investor redemption demands. In March, company executives defended the sale in a conference call with investors. Co-President Craig Packer stated that the deal "had no hidden terms or discounts."