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

Blue Owl Capital announced a $1.4 billion sale of direct lending investments, which were bought by four North American public pension and insurance investors at 99.7% of par. The assets sold cover 128 portfolio companies across 27 industries, with internet software and services representing about 13% of the sold exposure. The company said the sale was executed at fair value and will provide cash to return to shareholders while modestly strengthening liquidity.

OBDC II intends to use the proceeds to pay a return of capital distribution of up to 30% of net asset value, or about $2.35 per share, and that distribution is expected on or before March 31, 2026. The OBDC II board intends to prioritize delivering liquidity ratably to all shareholders through quarterly return of capital distributions, which are intended to replace future quarterly tender offers and may be funded by earnings, repayments, other asset sale opportunities or strategic transactions.

The transaction follows the termination of a proposed merger between OBDC and OBDC II in November 2025, an episode that had increased redemption pressures. Shares in Blue Owl and related publicly traded BDCs have slid in recent months, and the firm has both accelerated capital returns and worked to pay down debt to protect the remaining portfolio.

Company leaders say this plan gives retail investors a faster return of cash and that management will continue to evaluate opportunities to return additional capital as repayments and earnings permit. The board also declared monthly distributions for February and March 2026, reflecting ongoing cash flow.