Private debt fund vows withdrawals won’t reopen, echoing Bear Stearns era concerns
TL;DR
Blue Owl Capital Corp. II, a $1.6 billion private-debt fund, has abandoned plans to resume withdrawals and will return about 30% of NAV this quarter after its manager sold $1.4 billion of loans to large pension and insurance buyers (including $600 million from the fund). Mohamed El-Erian weighed in on the development, drawing Bear Stearns parallels and warning of broader risks in private credit, even as related Blue Owl vehicles trade well below NAV and the parent’s stock has tumbled.
Topics:top-newsmarkets#bear-stearns-parallels#blue-owl-capital#markets#middle-market-debt#private-debt#withdrawals
- This fund that now says it’ll never open up for withdrawals has El-Erian making Bear Stearns parallels MarketWatch
- Blue Owl permanently halts redemptions at private credit fund aimed at retail investors Financial Times
- Blue Owl curbs investor liquidity following asset sale, shares down 3% in pre-market trading CNBC
- Blue Owl sells $1.4 billion from three credit funds, permanently halts redemptions at one of the funds Reuters
- Blue Owl Loan Sale Raises $1.4 Billion for Investor Payouts Bloomberg.com
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