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

Blue Owl Capital announced a major asset sale this week and said it sold $1.4 billion of direct lending investments to four institutional buyers at 99.7% of par. The move has allowed OBDC II to plan a return of capital distribution of up to 30% of net asset value, which the company expects to pay on or before March 31, 2026. Although the firm had planned to resume quarterly tender offers, it will replace them with periodic return of capital distributions.

The company said the sale will help pay down debt and give investors faster liquidity while preserving the remaining portfolio. Craig Packer, a company co‑president, said the firm is 'not halting investor liquidity' and that the payment provides more cash than a normal quarterly tender. Since the termination of a planned merger last year, Blue Owl has sought ways to return money to retail shareholders, and this sale is the latest step.

Shares in Blue Owl and related publicly traded BDCs have slid since the plan emerged; Blue Owl's stock closed down about 5.9% on the day of the announcement. Analysts have said the sale and the high price achieved, 99.7% of par, are a test of investor confidence in private credit.