Blue Owl Capital has made headlines recently by permanently halting redemptions at a private credit fund aimed at retail investors, leading to significant selloffs in private equity shares. This decision comes as the firm embarks on a $1.4 billion asset sale to institutional investors, further intensifying concerns over liquidity in the private credit market. Shares of Blue Owl and related asset managers have plunged, with expert Mohamed El-Erian noting potential parallels to past financial crises. Despite the tumult, Blue Owl asserts the credit quality of its traded debt fund remains strong, although experts continue to raise alarms over the stability of the private credit sector and the implications of these recent actions.