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Blue Owl, HPS Join Private Credit Funds Stung by February Losses

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(Bloomberg) -- Private credit funds already under strain from heavy redemptions have a new pain point: losses in February are shaping up as the worst in more than three years. Two of the biggest retail-focused funds from Blue Owl Capital Inc. and BlackRock Inc.’s HPS Investment Partners joined peers in reporting negative returns for the month. Blue Owl Credit Income Corp., a non-traded business de...
**Steelman:** The article presents a balanced perspective on the struggles faced by private credit funds due to heavy redemptions and losses in February. It highlights the poor performance of certain funds, but also acknowledges that others are still showing positive returns for the year so far. **Patterns detected: none** **Root Cause:** The underlying cause appears to be investor concerns over loan quality and exposure to software businesses threatened by artificial intelligence. This could be...