In this article
The private credit boom is facing a new test after Blue Owl Capital permanently restricted withdrawals from one of its retail-focused debt funds.
Shares in Blue Owl Capital fell nearly 6% on Thursday after the private market and alternative assets manager sold $1.4 billion of loan assets held in three of its private debt funds.
The biggest portion of the sale came from a semi-liquid private credit fund marketed to U.S. retail investors called the Blue Owl Capital Corporation II, which will stop offering quarterly redemption options to investors, reigniting debate over whether stress was beginning to resurface in one of Wall Street’s fastest-growing corners.
“This is a canary in the coal mine,” Dan Rasmussen, founder and adviser at Verdad Capital told CNBC. “The private markets bubble is finally starting to burst.”
