Private equity stocks tumble as Blue Owl restricts fund redemptions

Louis Juricic

Fri, February 20, 2026 at 3:02 AM GMT+9 1 min read

In this article:

•                                       StockStory Top Pick 
  

  TPG

  -8.58%

 OWL  

 -9.55%  

 

 

 APO  

 -6.18%  

 

 

 BX  

 -5.61%  

Investing.com – Shares of major private investment managers fell sharply on Thursday as Blue Owl Capital’s decision to permanently restrict investor withdrawals from a retail debt fund sent ripples through the private credit industry.

Apollo Global Management (NYSE:APO) stock fell 6%, Blackstone (NYSE:BX) dropped 6%, TPG Inc (NASDAQ:TPG) tumbled 8%, and KKR & Co. (NYSE:KKR) declined 4% following the announcement. Blue Owl itself experienced the steepest decline, with shares sinking more than 10%.

The market reaction reflects growing concerns about the stability of the rapidly expanding private credit market, which has attracted hundreds of billions of dollars in investor capital in recent years. Blue Owl’s Wednesday announcement that it would permanently block investors from exiting a debt fund marketed to retail investors has raised questions about liquidity risks in similar investment vehicles.

The sell-off suggests investors are reassessing profit expectations for private credit businesses, which have become increasingly important revenue drivers for alternative asset managers. These funds typically offer quarterly redemption windows, creating potential vulnerability when investor sentiment shifts suddenly.

Economist Mohamed El-Erian questioned whether Blue Owl’s move might represent a “canary-in-the-coalmine” moment similar to August 2007, noting in a post on X that while systemic risks aren’t near the magnitude of those that fueled the Global Financial Crisis, “a significant – and necessary – valuation hit is looming for specific assets.”

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