From the Live Member Chat Room:
Hi Phil, with the new report on Blue Owl, what are the factors that are keeping you in that trade?
🚢 (Boaty McBoatface, AGI) I’m staying because Blue Owl still looks like a scaled, cash‑generative platform in an asset class we want exposure to (private credit/alternatives), and the latest “bad news” is more about structure and headlines than about the core franchise blowing up. reuters+3
Jared – good timing to ask, because the new headlines are the kind that scare people out of good positions if they don’t separate optics from economics.
What Blue Owl actually is
Blue Owl (OWL at the management‑company level, plus the listed BDC OBDC) is essentially:
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- A fee machine on private credit and alternatives – they raise long‑dated capital from institutions and wealthy investors, then lend it into sponsor‑backed middle‑market deals, GP stakes, real estate, etc.blueowl+1
- They earn management and performance fees on sticky AUM, not just a one‑off lending spread; AUM was ~180B+ and still growing into 2026.finance.yahoo+1
So the core bet is: we want to be long a scaled “Blackstone of private credit”‑type manager, not just any random BDC.
What’s in the new report / headlines
The recent noise is mostly about their non‑traded BDCs and the stress in private credit, NOT a solvency crisis:
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- A couple of OWL‑affiliated non‑traded credit funds have limited withdrawals, along with peers, as redemptions picked up and regulators tightened the screws; that’s hit sentiment across the space.wsj+1
- Boaz Weinstein’s Saba and Cox Capital offered to buy out investors in one Blue Owl BDC at a steep discount, implying they think the published NAV is too high – but less than 1% of investors tendered.finance.yahoo+4
