Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, April 3. In today's briefing, an increasingly dour outlook for private credit after investors asked to pull billions from two Blue Owl funds. In bankruptcy court, holdout creditors of Multi-Color once again appealed its choice of chapter 11 venue in New Jersey.

The wealthy investors that powered private credit are heading for the exits. The rush of investors trying to pull their money from private-credit funds intensified this week, hitting unprecedented levels and raising the specter of prolonged pressure on the firms that had become the new kings of Wall Street.

Blue Owl Capital, once the epitome of the explosion of private-credit lenders, revealed Thursday that investors sought to pull $5.4 billion from a pair of its funds in the first quarter. The requests come after weeks of elevated redemption figures trickling out from competitors including Apollo Global Management, Blackstone, BlackRock and Cliffwater.

In total, investors asked to pull nearly $14 billion in the first quarter from the type of private-credit funds known as business-development companies that make loans to mostly junk-rated companies, according to the investment bank Robert A. Stanger & Co. Investors were able to redeem roughly half that.

• What’s a Private-Credit Fund Worth When the Money Is Locked Up?
• Software Fears Drive Redemption Requests for Blue Owl Tech-Focused BDC

Private-equity fundraising falls to slowest pace in a decade. The private-equity industry’s fundraising slump continued in the first quarter amid turmoil in the private-credit and software markets and uncertainty over the war in Iran.

This wasn't supposed to be a banner year for private equity anyway, but under the pressure of ongoing private-markets stress and geopolitical disruption due to the war, fundraising through the first quarter is on track for its worst annual total since 2016.

Multi-Color lenders appeal bankruptcy venue ruling again. A group of lenders to bankruptcy label maker Multi-Color have appealed a judge’s decision to allow the case to move ahead in New Jersey for the third time.

Last week the lenders, which include BTG Pactual, Canyon Partners, Owl Creek Asset Management, and Shenkman Capital, had their so-called writ of mandamus denied by Third Circuit Court of Appeals judges. This would have quickly dismissed Multi-Color’s case had it been approved.

The new appeal seeks a ruling on whether venue rules prevent Multi-Color’s case from proceeding in New Jersey. Multi-Color filed for chapter 11 in New Jersey in January, despite being headquartered in Atlanta. The company used an Ohio entity, MCC Norwood, to file for bankruptcy and funded a $1 million bank account in New Jersey in the weeks before it filed. –Alicia McElhaney

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