Blue Owl asset sale sends shockwaves through private credit as liquidity concerns intensify

Instead of quarterly tender offers capped at 5% of assets, investors will receive periodic capital distributions funded by asset sales and repayments, potentially totaling about 30% of net asset value.

The move has become a flashpoint for broader concerns about private credit’s reliance on retail investors, a segment many managers increasingly targeted as institutional fundraising slowed.

According to The Wall Street Journal, the asset disposal followed mounting redemption pressure and weakening inflows into semi-liquid business development companies, raising doubts about whether individual investors will remain dependable long-term capital providers during periods of economic uncertainty.

Market reaction was swift. Shares of Blue Owl dropped sharply after the announcement, dragging down competitors including Apollo Global Management, Blackstone and Ares Management, underscoring how private-market developments are increasingly influencing public equities, Reuters reported.

The transaction covered loans to 128 companies across 27 industries, with about 13% tied to software and services — a sector facing valuation pressure amid rapid technological change and declining public-market multiples.