Blue Owl Capital Sets Off New Fears About the Private Credit Industry

Shares of Blue Owl Capital plunged after the company said it would change how investors can withdraw money from one of its funds, stoking fresh concerns about the private credit industry. The stock ended down 6 percent after falling as much as 10 percent earlier in the day, and other firms with private credit exposure, including Ares, Apollo and Blackstone, fell more than 5 percent.

Blue Owl has amassed nearly $300 billion in investor money. Blue Owl said investors would no longer be able to ask for a set amount back each quarter and that the firm will decide quarterly payouts going forward. It also said it had sold $1.4 billion in loans from three business development companies, using $600 million of the proceeds to return cash to investors in one of its private credit funds after selling the loans at nearly 100 cents on the dollar.

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