About
Blue Owl Capital (OWL) shows excellent fundamentals and credit quality, as the company seeks new ways to enhance long-term value for shareholders after a merger attempt failed.1On November 20, 2025, Blue Owl Capital joined Supermarket Income REIT to buy 10 Asda supermarkets for £196 million, managing funds for the acquisition.2
Blue Owl Capital CEO Craig Packer Reports Acquisition of Common Shares
Blue Owl Capital has canceled the merger of its private-credit funds, OBDC II and OBDC, due to investor concerns and stock volatility. The merger would have restricted redemptions and caused paper losses. The decision to call off the merger allows OBDC II investors to redeem in the first quarter. Blue Owl shares initially fell but rebounded slightly after the announcement.
Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation II (OBDC II) have terminated their proposed merger due to market volatility. Both companies will continue to operate independently. OBDC II plans to reinstate its tender program in Q1 2026, pending board approval. OBDC’s $200 million share repurchase program remains active.
Blue Owl Capital halted redemptions and merged its private credit fund OBDC II with a larger publicly traded vehicle, causing a forced conversion and an anticipated 20% loss for investors. This move restricts investor access until 2026 and raises concerns about fund valuation and liquidity in the private credit industry. The event highlights liquidity and valuation risks, impacting confidence in Blue Owl's growth and transparency. Despite new partnerships, liquidity and valuation stability remain immediate risks.
