UBS Advice on Private Credit Exposure Sparks Withdrawals From Blue Owl Fund

UBS advised wealth management clients to reduce their holdings in private credit, triggering withdrawals from the Blue Owl Technology Income fund during the fourth quarter of 2025. The guidance was aimed at clients with excessive exposure to the asset class, the Financial Times reported Friday, citing two sources familiar with the matter.

Details of the Withdrawals

The fund in question, Blue Owl Technology Income, reportedly sourced a significant portion of its capital from the Swiss bank's clientele. According to the report, at least 60% of the fund's capital came from UBS clients based in Asia.

This move by UBS highlights a broader theme of portfolio rebalancing, where wealth managers adjust client allocations after periods of significant growth or concentration in a particular asset class. UBS did not provide a comment on the matter to the Financial Times.

Blue Owl's Position

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A spokesperson for Blue Owl told the publication that the fund's performance remains solid despite the withdrawals. The asset manager emphasized the fund's fundamentals, pointing to:

• A consistent credit performance.
• A low non-accrual rate of just 0.2%.
• A stable distribution rate of 9.2%.

This development underscores the influence that large wealth managers' tactical asset allocation advice can have on fund flows for alternative investment managers. It also signals a potential shift in sentiment or risk management concerning the rapidly growing private credit market.