Shares of U.S. alternative asset managers fell on Thursday after Blue Owl capped the amount investors can withdraw from two of its retail-focused funds, stoking fresh concerns about the industry.

The curbs are the latest in a wave of withdrawal limits this year, which have exposed risks and punctured confidence in what had become one of Wall Street's favorite trades in recent years.

Apollo Global, Blackstone and Ares Management dropped 3%, 3.4% and 2.1%, respectively.

KKR fell 1.5%, while Carlyle Group slipped 2.4%.

Blue Owl dropped 3.5%. The company limited redemptions after investors asked to withdraw 40.7% of shares in technology-focused Blue Owl Technology Income Corp (OTIC) and 21.9% of shares in the larger fund Blue Owl Credit Income Corp (OCIC).

Typically, private equity and private credit firms turn to wealthy individuals and institutions for fresh capital, offering semi-liquid funds that promise periodic redemptions while investing in harder-to-sell assets such as buyout stakes and direct loans.

Strong demand for diversification in recent years also pushed fund managers to tap retail investors. But with many of their portfolio companies in the software industry under pressure, some investors are seeking to exit.

The curbs on redemptions could heighten scrutiny of similar vehicles and bring questions about valuation, transparency and liquidity risk to the fore.

Some have also flagged the risk of broader systemic stress, though Federal Reserve Chair Jerome Powell said earlier this week that the central bank has not seen anything that threatens the financial system as a whole.

"Systemic risks remain low, banks are well insulated, and institutional investor demand is likely to be stable," analysts at Morgan Stanley wrote.