Blue Owl Capital’s shares extended their selloff on Friday, as concerns mounted over the alternative asset manager’s plans to return capital from a debt fund. This move has ignited worries about private-lending standards and potential liquidity issues within the sector. The stock, already down more than half its value over the past year, fell another 4% after a 6% drop in the previous session.
Investor apprehension began after Blue Owl announced it would sell $1.4 billion in assets across three funds, returning the proceeds to investors and paying down debt. Adding to the pressure was a report that Blue Owl had sold the portfolio of loans to several North American pension funds, as well as its own insurance firm, Kuvare. Other investment firms have offered to buy shares in Blue Owl funds at a significant discount to their recent valuations.
Blue Owl Co-President Craig Packer defended the asset sales, stating that each of the institutions involved had the appetite to buy more. He clarified that the firm was only changing how redemptions are carried out, not halting them, and that the shift would speed up the process. Blue Owl maintained it sold the loans close to their book value, validating its own valuations.
Blue Owl Capital is an alternative asset manager that provides investment solutions across credit, private equity, and real estate. The company aims to partner with leading entrepreneurs to build durable businesses. Shares of peers like Apollo Global and KKR also faced pressure amid concerns about software valuations and the rapid advances in artificial intelligence. Separately, Blue Owl refuted reports it was unable to secure financing for a data-center project, confirming its commitment to providing bridge financing through March 2026.
