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Blue Owl has officially decided to halt its planned private-credit merger. The firm had intended to combine two of its major funds. Sources confirmed the decision was due to significant investor angst. The deal generated volatility and negative headlines quickly. The boards concluded that the benefits did not outweigh the major backlash. Blue Owl Fund Merger Called Off was confirmed by a company press release later. Blue Owl cited “current market conditions” as the official reason for termination.
The merger plan involved the firm’s smaller, non-traded fund. Blue Owl Capital Corporation II (OBDC II) was the smaller fund. It was to merge into the larger, publicly traded OBDC. The $1.7 billion OBDC II was restricted from redemptions. This restriction was imposed until the deal finalized officially. The merger would have resulted in about 20% paper losses. This loss was based on the trading price of the $17.1 billion OBDC. News of the redemption restrictions caused a market reaction. Shares of the parent company slumped about 6% on Monday.
The stock volatility added to broader industry concerns. Investors are already worried about the state of private credit. Specific fears involve heavy financing in certain sectors. The massive AI datacenter buildout is frequently cited. Many industry observers fear this expansion is overhyped. The firm’s shares rebounded slightly on Tuesday. They were relatively unchanged in subsequent trading.
Craig Packer is the CEO of both affected funds. He issued a statement following the termination. Packer confirmed both funds maintain “excellent fundamentals.” He expressed confidence in their ability to deliver strong returns independently. The firm will continue considering opportunities for OBDC II. Now that the Blue Owl Fund Merger Called Off is final, liquidity returns. OBDC II will allow investor redemptions again. Redemptions are expected to resume in the first quarter. The fund traditionally allows liquidity on a quarterly basis normally. The reversal was necessary to restore investor confidence.
Blue Owl has officially decided to halt its planned private-credit merger. The firm had intended to combine two of its major funds. Sources confirmed the decision was due to significant investor angst. The deal generated volatility and negative headlines quickly. The boards concluded that the benefits did not outweigh the major backlash. Blue Owl Fund Merger Called Off was confirmed by a company press release later. Blue Owl cited “current market conditions” as the official reason for termination.
The merger plan involved the firm’s smaller, non-traded fund. Blue Owl Capital Corporation II (OBDC II) was the smaller fund. It was to merge into the larger, publicly traded OBDC. The $1.7 billion OBDC II was restricted from redemptions. This restriction was imposed until the deal finalized officially. The merger would have resulted in about 20% paper losses. This loss was based on the trading price of the $17.1 billion OBDC. News of the redemption restrictions caused a market reaction. Shares of the parent company slumped about 6% on Monday.
The stock volatility added to broader industry concerns. Investors are already worried about the state of private credit. Specific fears involve heavy financing in certain sectors. The massive AI datacenter buildout is frequently cited. Many industry observers fear this expansion is overhyped. The firm’s shares rebounded slightly on Tuesday. They were relatively unchanged in subsequent trading.
Craig Packer is the CEO of both affected funds. He issued a statement following the termination. Packer confirmed both funds maintain “excellent fundamentals.” He expressed confidence in their ability to deliver strong returns independently. The firm will continue considering opportunities for OBDC II. Now that the Blue Owl Fund Merger Called Off is final, liquidity returns. OBDC II will allow investor redemptions again. Redemptions are expected to resume in the first quarter. The fund traditionally allows liquidity on a quarterly basis normally. The reversal was necessary to restore investor confidence.
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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