Blue Owl Sells $1.4B Loans, Halts Redemptions in Capital Corp II Fund
Blue Owl sold $1.4 billion of loans across three funds ($600M OBDC II, $400M tech fund, $400M flagship BDC) and halted redemptions in its Capital Corp II vehicle. The book-value sale follows a 27% share slump tied to 13% exposure to a software sector down $2 trillion.
1. Asset Sale and Fund Breakdown
Blue Owl sold $1.4 billion of direct lending assets from three credit funds—$600 million from OBDC II, $400 million from Blue Owl Technology Income Corp and $400 million from its flagship Blue Owl Capital Corp—to four institutional buyers at book value.
2. Redemption Halt and Redemption Strategy
The firm permanently halted redemptions in its Capital Corp II fund to return capital and repay debts. Meanwhile, co-president Craig Packer said redemption restrictions on OBDC II have been replaced by an accelerated 5% quarterly tender process.
3. Market Reaction and Software Exposure
Blue Owl's shares have plunged 27% year-to-date, slipping over 9% in a single session as investors fretted over the move. Software loans account for 13% of the sold assets, a sector that has shed roughly $2 trillion in market value since October.