Blue Owl and BlackRock HPS private credit fund both recorded losses in February, marking their worst performance in over three years.

Mass redemptions have put pressure on private credit funds, which are now facing a new pain point: losses in February are the worst performance in over three years. Blue Owl Capital and HPS Investment Partners, two large funds targeting retail investors, also recorded negative returns for the month. According to Bloomberg calculations based on regulatory filings, Blue Owl Credit Income, a non-listed business development company, fell 0.86% in February. The $26 billion HPS Corporate Lending Fund also fell by 0.3% for the month. This is the worst monthly performance for both funds since 2022, in line with the trend of the biggest monthly drop in the leveraged loan market this year. Despite the relatively weak performance in February, the performance of these funds varies this year. The $35 billion Blue Owl fund is experiencing its worst start since investing began in 2021, with a loss of about 0.75%. On the other hand, the HPS fund has achieved a rare positive return of 0.51% since 2026 among its major peers. Apollo Debt Solutions also saw an increase this year, with a rise of 0.39%. Representatives from Blue Owl, BlackRock, and Apollo have all declined to comment.