Blue Owl slips after blocking redemptions from private credit fund

Blue Owl Capital

18/11/2025 12:23

** Shares of alternative asset manager Blue Owl OWL.N slip 0.5% to $13.72 premarket

** Company moves to block redemptions from one of its private credit funds ahead of a merger

** Blue Owl plans to merge its two debt funds — publicly traded Blue Owl Capital Corporation OBDC.N with the non-traded business development company Blue Owl Capital Corporation II

** OWL says merger will cut costs, improve efficiency and position shareholders for long-term value but investors in non-traded fund cannot redeem capital until deal closes

** Blocking redemptions has added to jitters in private credit sector, already under strain following bankruptcies of First Brands and subprime lender Tricolor

** Blue Owl shares down about 41% YTD, as of last close

(Reporting by Tharuniyaa Lakshmi in Bengaluru)

((tharuniyaa@thomsonreuters.com))