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Blue Owl’s Liquidity Shift Stokes Private-Credit Jitters as Treasury Voices Concern

The manager is unwinding part of OBDC II by selling roughly $1.4 billion of loans to fund a 30% payout, replacing quarterly withdrawals with periodic distributions.

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Blue Owl signage outside the Seagram Building at 375 Park Avenue in the Midtown East neighborhood of New York, US, on Tuesday, Jan. 20, 2026. A Blue Owl Capital Inc. private credit fund has launched its first dollar bond in a year, during a session in which global market jitters kept other potential borrowers on the sidelines.
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Overview

  • Blue Owl permanently ended quarterly redemptions at OBDC II and began selling assets, saying it will return about 30% of investors’ capital.
  • The company disclosed a $1.4 billion sale of loans and commitments, with pricing reportedly near par at roughly 99.7 cents on the dollar.
  • Shares of Blue Owl and rivals including Ares, Blackstone, Apollo, and KKR fell as concerns spread across the $1.8 trillion private-credit market.
  • Treasury Secretary Scott Bessent said officials are concerned and are closely monitoring the sector’s rapid expansion and retail reach.
  • Analysts are split, with Bank of America and Oppenheimer arguing fundamentals remain solid and misinformation is driving fear, even as reporting notes a related-party buyer in insurer Kuvare.