What Blue Owl's Big Asset Sale Means for Retail Private Credit Investors

Blue Owl Capital said it will sell $1.4 billion in loans to return money to investors in a small private credit fund called OBDC II. The sales were at 99.7% of par and will let the fund pay a return of capital of up to 30% of net asset value. The company said the loans were sold to four large pension and insurance investors.

The firm said it will stop quarterly redemptions and use periodic distributions instead. Company leaders said they are not halting investor liquidity and that the return of capital is expected on or before March 31, 2026. The move aims to give investors more cash now than a regular tender.