Oaktree Private Credit Fund Redemptions Drop Below Key 5% Limit

An Oaktree Capital Management private credit fund saw redemption requests drop by nearly half in the second quarter, making it the first major firm to stem a growing exodus from the $1.8 trillion industry.

Investors asked to redeem 4.5% from the Oaktree Strategic Credit Fund — below the 5% offered, according to a shareholder letter Wednesday. That allowed the roughly $7 billion fund to fully satisfy demand even as rival asset managers including BlackRock Inc. and Blackstone Inc. capped withdrawals.

“In the current market environment, we believe investors are becoming more selective in evaluating managers ...