NEW YORK, May 3, 2026, 18:01 EDT
Brown University slashed its holdings in Blue Owl Capital Corp by roughly 53%, trimming exposure to the alternative asset manager’s largest listed private-credit vehicle as worries persist about Blue Owl Capital Inc. According to a regulatory filing, the school’s endowment held 1.5 million OBDC shares as of March 31, a drop from 3.2 million at the end of 2025. Brown left about 2.6 million shares with Blue Owl’s management company. Reuters
Timing’s key here. Private credit—where non-bank funds lend to companies, often fueling buyouts, expansion or refinancing—has come under sharper scrutiny in light of recent redemption demands, questions over asset values, and concerns about software-industry borrowers. Fed Governor Michael Barr, speaking Sunday, warned that stress in this market could spark “psychological contagion” and cause a wider “credit pullback.” Still, he said banks’ exposure to private credit wasn’t looking “super worrisome” just yet. Reuters
Blue Owl spent last week working to convince investors it’s more than just a direct lender. On April 30, the firm reported $315 billion in assets under management—client funds it oversees. Co-CEOs Doug Ostrover and Marc Lipschultz pointed to a market environment that rewards firms with “patient capital” and a tilt toward longer-duration strategies. Blue Owl Capital
Blue Owl’s quarterly filing reported total revenue climbing to $753.8 million, up from $683.5 million a year ago. Net income attributable to the firm hit $15.5 million—double the prior year’s figure. Fee-related earnings, which focus on management fee profit, increased to $393.6 million. The company noted it faced softer inflows and higher redemption requests across some non-traded business development companies. Even so, Blue Owl attracted $11.0 billion in new capital commitments for the quarter. SEC
Direct lending is still under strain. Blue Owl’s direct-lending arm posted a 1.1% net loss for the quarter, according to Reuters. New loan origination failed to keep pace with repayments. CFO Alan Kirshenbaum said the company is reducing its software exposure, but emphasized there have been no “material negative developments” in the portfolios. Reuters
OBDC finds itself squarely in that discussion. Blue Owl describes the firm as a specialty finance and business development company—known as a BDC—focused on providing direct loans to U.S. middle-market businesses. Its portfolio? Largely senior secured loans, meaning these are collateral-backed and give the lender priority repayment if things go south. Blue Owl Capital Corporation
SpaceX stood out during the call. According to Lipschultz, Blue Owl unloaded roughly half its stake in SpaceX at a $1.25 trillion valuation, locking in returns of “about 10 times” the original investment. That windfall, he said, should help cushion credit losses. Reuters
Competition in the sector shows cracks but hasn’t collapsed. Ares Management, a heavyweight in private credit, pulled in a record $30 billion during the first quarter, it said Friday. CEO Michael Arougheti noted institutional investors “not allocating away from private credit,” though flows from private wealth have decelerated. Reuters
Investors won’t have to wait long for the next update. OBDC is set to release its first-quarter numbers after the bell on May 6, with a call scheduled for the following morning. That release is likely to shed more light on whether Brown’s recent cut was just a portfolio tweak, or if it hints at something broader in terms of Blue Owl-branded credit risk. Blue Owl Capital Corporation
