May 12 (Reuters) - Blue Owl OWL.N has seen a 95% drop in new investments at its biggest credit fund for retail investors, according to a regulatory filing, as direct lending came under rising scrutiny.

The Blue Owl Credit Income fund (OCIC) reported accepting just $26.4 million in subscription payments on May 1, compared with $480 million at this time last year. Blue Owl values OCIC's portfolio at about $34 billion.

Wealthy investors have queued up to withdraw their money from private credit vehicles in recent months amid worries about weakening lending standards and concerns that artificial intelligence could severely disrupt the software industry, a sector where many funds have significant exposure.

OCIC is structured as a business development company, a vehicle that raises equity and pairs it with leverage to finance loans, mainly to mid-sized companies.