Shadow bank Blue Owl Capital has restricted private credit redemptions from two of its largest private-credit funds, after investors sought to withdraw $5.4 billion in the first quarter. The funds, which invest in debt made outside of banks, can take time to sell and may result in a "fund run" where many investors want their money back at once, causing a loss. The firm will only honor only 5% of these requests in each fund. The largest pressure was from Blue Owl's $6.2 billion technology-focused fund, which investors fear could disrupt the software business models many of these loans are tied to. The flagship fund currently holds $11.3 billion in cash, credit lines and liquid assets.