New York, February 24, 2026, 06:43 EST — Premarket
- Deutsche Bank downgraded the stock to Hold and trimmed its price target to $10, sending shares down 4.2% before the bell.
- Investor nerves are centering on Blue Owl, with concerns mounting about both the liquidity of its private-credit funds and its exposure to software loans.
- The March 2 dividend payout is the next date traders have marked on their calendars.
Blue Owl Capital Inc shares slipped 4.2% in premarket action on Tuesday after Deutsche Bank dropped its rating to Hold from Buy and slashed its price target to $10—a Street low—from $15, flagging a more challenging environment for net flows into retail private-credit offerings. Shares were last seen at $10.44, down 3.3% from the previous close. (Seeking Alpha)
The downgrade drops right in the thick of the ongoing debate over private credit—loans that happen outside the public markets—and whether investors really want exposure to “semi-liquid” funds if things sour. Even with Bank of America trying to calm nerves Monday, Blue Owl shares are down more than 16% over five days, pressured by headlines about fund withdrawals and news of trouble securing financing for a CoreWeave-linked data-center project. (Business Insider)
Credit traders are seeing AI shake things up. “We expect AI disruption risk to be increasingly reflected over 2026 to early 2027,” said Matthew Mish, UBS’ head of credit strategy. Lenders have started pushing for wider spreads from software firms, which is already leading to deal delays. PineBridge Investments’ Jeremy Burton doesn’t expect software or business services to be “hot sectors” for issuance in the coming year. (Reuters)
Analyst Brian Bedell at Deutsche Bank issued the call, according to a report from StreetInsider early Tuesday. (StreetInsider.com)
Blue Owl has been working to calm nerves since Feb. 18, after announcing plans to offload $1.4 billion in assets from three credit funds, return some capital, and pay down debt. The firm also made redemptions at Blue Owl Capital Corp II a thing of the past, opting to stop them for good. “We’re not halting redemptions, we are simply changing the method,” co-president Craig Packer told analysts on the call, following news that the company was securing 99.7% of par value—virtually at face value—for the loans. Citizens analyst Brian McKenna took that as proof: valuations are “marked-to-market and are validated.” (Reuters)
Investors kept unloading shares into Friday. On Feb. 20, Reuters reported that short interest in Blue Owl had climbed to around 12.5% of the float. Worries also picked up after a now-disputed report alleged the firm couldn’t lock down outside funding for a $4 billion CoreWeave-linked data-center project. (Reuters)
Much of the confusion boils down to the tricky mechanics. Investors in these funds usually face only narrow “windows” to pull their money out—tender offers are common—unlike the daily liquidity you get in mutual funds. So, when managers change the playbook partway through, even if the numbers look improved, it can come off as a sign of stress.
The big question for Blue Owl’s listed shares right now: can the firm continue to bring in new capital as it juggles withdrawal requests and works to defend its loan marks. Deutsche Bank’s note pointed out that retail inflows could prove tougher, potentially denting fee growth in an area where investors had penciled in more consistent gains.
But risks remain. Should software borrowers continue to see their valuations drop alongside widening credit spreads, private lenders could find themselves pushed to offload assets or settle for weaker marks. That’s the kind of shift that can quickly turn steady liquidity management into a headline snag. High short interest just adds fuel to those daily price jolts.
Blue Owl is set to pay out its standard quarterly dividend of $0.225 per Class A share on March 2. Ahead of that date, investors are keeping an eye on the stock’s stability and waiting to see if management provides any new updates on fundraising efforts or retail flows. (blueowl.com)
