AI Fears Impact Private Credit, Blue Owl Slumps 26% Amid Tech Rout

The article reports on the impact of the recent AI software fears on private credit and alternative asset managers with concentrated software exposure. Blue Owl Capital Inc. has seen its shares fall 26% over 11 sessions, and its technology-focused BDC is trading at a record low. Investor caution has also been evident in fund flows, with around 15.4% of net assets withdrawn from one of Blue Owl's tech- and software-focused BDCs. The disruption fears are extending into traditional investment banking, with shares of Goldman Sachs and Morgan Stanley falling nearly 6% and 5%, respectively. Executives have cautioned that if volatility persists, dealmaking and underwriting activity could eventually feel the impact.