Blue Owl Sells $1.4 Billion From Three Credit Funds, Permanently Halts ...
Blue Owl sold $1.4 billion in loans to North American institutional investors and will return capital via periodic payments to manage liquidity and reduce debt.
- On Feb 18, Blue Owl Capital announced it sold $1.4 billion in assets from three credit funds and permanently halted quarterly redemptions at Blue Owl Capital Corp II .
- Facing rising liquidity pressure, Blue Owl executives said the sale follows software stocks being pummelled and surging redemption requests in recent months affecting some business development companies.
- Blue Owl Capital Corporation sold $600 million, at 99.7% of par, in loans spanning 128 companies across 27 industries, to four North American pension and insurance investors.
- Shareholders will receive episodic payouts and up to $2.35 per share, about 30% of net asset value, as Blue Owl shares fell almost 3% following the sale announcement.
- Amid a stressed $3 trillion private credit market, commentators warned this move echoes 2007 as default rates climb around 4.55%, increasing systemic risks.
20 Articles
20 Articles
The nightmare of the 2008 global financial crisis is creeping back into Wall Street, the center of global finance. A redemption freeze has occurred in the private credit market, which has recently seen explosive growth, preventing retail investors from withdrawing their funds. On the 19th (local time), Blue Owl Capital, a top-tier global alternative investment asset manager with assets under management (AUM) of $300 billion (approximately 435 tr…
(New York = Yonhap News) Correspondent Lee Ji-heon = Blue Owl Capital, a U.S. private equity fund that has been increasing its investment in private equity loans in the information technology (IT) industry, announced on the 19th (local time) that its operating fund...
Blue Owl Tumbles as Investor Withdrawals Halted: Rugpull Or Business as Usual?
Blue Owl Capital (NYSE:OWL) shares are falling 9% in morning trading today after the firm announced it would permanently halt quarterly redemptions from its Blue Owl Capital Corporation II fund, known as OBDC II. This non-traded business development company (BDC), aimed at individual investors, will instead provide liquidity through periodic distributions as it sells assets ... Blue Owl Tumbles as Investor Withdrawals Halted: Rugpull Or Business
Mohamed El-Erian warns of financial-crisis red flags after a major private-credit fund freezes withdrawals
Rob Kim/Getty ImagesMohamed El-Erian said a recent development in private credit has hints of 2007. He pointed to Blue Owl freezing withdrawals on a private debt fund offered to retail investors. The private credit investing boom may have gone "too far overall," he said.Mohamed El-Erian thinks a recent development in private credit contains echoes of the financial crisis. In a LinkedIn post on Thursday, the former PIMCO CEO flagged a Financial T…
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