From redemptions, to growing PIK interest to increasing bank BDC lender scrutiny of valuations and related margin calls, BDCs are entering a period of a major liquidity event. And the broader private credit sector will very much feel the impact as a large part of private credit heads towards a shut down. Given my prior post titled: "The Real Surprise With BDC Redemptions is That They're Not 100%," I can't say that this news is a surprise. But still, Blue Owl's latest redemptions are off the charts. Today Blue Owl announced a significant spike in redemptions exceeding 20% for their flagship OCIC fund and a stunning 40% for their tech focused fund (OTF) in Q1. The 40% for OTF was a >2x jump from 17% in the prior quarter. This news doesn't directly impact their public OBDC fund, but given the overlap of credits, stress across Blue Owl's non-traded BDCs could impact all their funds, including their non-BDC private credit funds. And Moody's Jan 2026 ratings upgrade of OCIC to Baa2 from Baa3, is a strong contender in the "are you f@$ing kidding me" ratings competition. OCIC will manage the redemptions by invoking the 5% gate. As inflows covered nearly 90% of the $1B redemptions, they will be able to manage without material liquidation of assets or drawing down credit lines. As OCIC inflows largely came from automated subscriptions and dividend reinvestment, this isn't something that can be relied on going forward. These are automated inflows, not newly emerging investors. Eventually, these sources will likely turnoff. OCIC claims $11B in available liquidity including undrawn lines of credit, cash and Level 2 assets. Not sure where these numbers come from but from my read on the data as of year-end 2025, the undrawn lines total $3.5, Level 2 assets of $4.6B and unrestricted cash of only $700M - a steep drop from $1B in Q4 2024 - total less than $9B. While that still seems ample against a backdrop of around $1B redemptions, I'm not sure if the credit lines and Level 2 assets can be counted on if the storm continues. Level 2 assets aren't necessarily liquid and credit lines are subject to a borrowing base and covenants. And clearly the cash isn't sufficient. Further, the $3.5B undrawn lines from OCIC's lenders is roughly comparable to the undrawn lines OCIC has granted TO their borrowers. One important thing to note is that a 20% redemption rate will effectively render OCIC in wind down mode. The fund can gate beyond the 5%, but the 15% not redeemed will not disappear but likely will be resubmitted in subsequent quarters. If next quarter sees another 20% redemption level and the 15% not redeemed this quarter is resubmitted, that could result in redemptions approaching 40% in Q2. This could impair OCIC's ability to honor line draws to their borrowers as well as advance new funds to assist with workouts. It could all come crumbling down.