{"id":2217,"date":"2025-11-19T14:53:37","date_gmt":"2025-11-19T14:53:37","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/blue-owl-calls-off-merger-of-its-two-private-credit-funds-after-announcement-rattles-stock\/"},"modified":"2025-11-19T14:53:37","modified_gmt":"2025-11-19T14:53:37","slug":"blue-owl-calls-off-merger-of-its-two-private-credit-funds-after-announcement-rattles-stock","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/blue-owl-calls-off-merger-of-its-two-private-credit-funds-after-announcement-rattles-stock\/","title":{"rendered":"Blue Owl calls off merger of its two private-credit funds after announcement rattles stock"},"content":{"rendered":"\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108228220\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108228220\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000396030\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">Blue Owl<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> has decided to call off the merging of two of its private-credit funds after the deal caused some angst among investors, according to people familiar with the matter. <\/p>\n<p>The firm had planned to merge its smaller, non-traded Blue Owl Capital Corporation II (OBDC II), into the larger, publicly traded fund Blue Owl Capital Corporation (OBDC). In doing so, the firm restricted investors in the $1.7 billion OBDC II from redeeming until the deal closed, even as the merger would have meant about 20% paper losses, based on where the $17.1 billion OBDC has been trading.\u00a0<\/p>\n<p>News of the restricted redemptions caused shares of the parent company \u2013 Blue Owl Capital to slump about 6% on Monday. It also added to concerns about the state of the private credit industry among investors, especially the area that has started to heavily finance the AI datacenter buildout that many fear is overhyped. Blue Owl shares rebounded slightly on Tuesday.<\/p>\n<p>The boards of the two firms did not see the benefits of merging the funds as outweighing the volatility and negative headlines that came from news of the deal, according to the people. Therefore, they chose to reverse course, sources said.<\/p>\n<p>Blue Owl confirmed in a press release later Wednesday morning that the proposed merger had been terminated, citing &#8220;current market conditions.&#8221;<\/p>\n<p>&#8220;Both funds remain strong, with excellent fundamentals, and we are confident in our ability to deliver attractive returns independently as we continue to work with the Board to consider the best future opportunities for OBDC II,&#8221; said Craig Packer, the CEO of both funds, in the release.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"\/><\/div>\n<\/div>\n<p><iframe title=\"Blue Owl, 1 month\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=OWL&amp;range=1M&amp;type=mountain&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" loading=\"lazy\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<p>Blue Owl, 1 month<\/p>\n<\/div>\n<div class=\"group\">\n<p>Now that the fund merger has been terminated, OBDC II will allow investors to redeem in the first quarter, said the people, who asked not to be named discussing non-public information. The fund historically has allowed liquidity on a quarterly basis. <\/p>\n<p>Blue Owl shares were little changed in trading Wednesday.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Blue Owl has decided to call off the merging of two of its private-credit funds after the deal caused some angst among investors, according to people familiar with the matter. The firm had planned to merge its smaller, non-traded Blue Owl Capital Corporation II (OBDC II), into the larger, publicly traded fund Blue Owl Capital [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[2000,2226,895,2228,580,2223,2227,2229,563],"class_list":["post-2217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-announcement","tag-blue","tag-calls","tag-funds","tag-merger","tag-owl","tag-privatecredit","tag-rattles","tag-stock"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/2217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=2217"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/2217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/2218"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=2217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=2217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=2217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}