Blue Owl, Ailing Private Credit Firm, Reveals Even More Troubles
nytimes.com • • business
Key Points:
- Blue Owl Capital disclosed investor withdrawal requests of 41% from a $6 billion fund and 22% from a $36 billion fund, but will only immediately fulfill 5% of those requests, with the remainder taking years to pay out.
- The large redemption requests signal declining confidence in Blue Owl's loan quality amid concerns including AI-related disruptions affecting software companies.
- Blue Owl cited external factors and specific wealth channels for the redemptions, and stated it can delay withdrawals or borrow and sell assets to meet requests as allowed by fund agreements.
- The company's stock hit a record low following the announcement, reflecting investor unease, despite some recovery during trading amid broader market volatility.
- Blue Owl, founded by Wall Street veterans, grew rapidly by lending to companies unable to secure traditional bank financing, offering relatively short-term loans that were previously considered safe.
