America's private credit giant Blue Owl has recently fallen into an investor confidence crisis. To address the massive withdrawal wave from investors such as Asian billionaires, the company was forced to increase the redemption cap of its private credit funds from 5% to 17%—a rather aggressive move. Data shows that investors have submitted redemption requests totaling up to $685 million in a short period, highlighting the decline in market confidence.

This incident reflects the deep-rooted difficulties currently faced by the entire private credit market. The redemption pressure on non-listed BDCs (Business Development Companies) has surged sharply, disrupting the industry's usual operational rhythm. More concerning is the growing market anxiety over declining investment returns and potential losses.

From a technical perspective, another private credit giant, COF, also peaked and retreated during the same period, further confirming the spread of this market sentiment. This is not just an issue for a single company but indicates systemic pressure across the entire private credit ecosystem—when a once-stable asset class begins to experience large-scale redemptions, all participants should remain vigilant.