Blue Owl Faces Investor Redemption Demands Amid AI Threat to Software Portfolio

• Blue Owl, a private credit giant managing $307.4 billion, has 70% of its portfolio in software companies.
• Investors are demanding money back as AI's rise poses an 'existential threat' to traditional software, pushing Blue Owl's stock to a two-and-a-half-year low.
• Reports of halting redemptions caused a sharp sell-off, but management clarified they deferred reopening withdrawals and will return 30% capital to an investor group.
• Senator Elizabeth Warren calls for increased capital requirements, data disclosure, and stress tests for private credit firms.
• Economist Mohamed El-Erian warns of potential stress in private credit, likening it to a 'canary-in-the-coalmine' moment.