Shares of Blue Owl Capital Inc. (NYSE: OWL) plunged more than 5% in early trading Friday, extending a recent selloff fueled by investor concerns surrounding an asset sale, changes to a debt fund, and a stalled financing deal, according to reports from Reuters and MSN.
The decline follows Blue Owl’s sale of loans at 99.7% of their face value – precisely the valuation the company carries on its books. Although Blue Owl frames this as validation of its valuation methods, some analysts are skeptical. Finneran, as reported by sources, notes that these loans would likely have commanded a premium to face value in prior years, given lower prevailing interest rates.
Adding to investor unease, Business Insider reported Friday that Blue Owl failed to secure financing for a $4 billion data center project with CoreWeave in Pennsylvania. This contrasts sharply with a $27 billion deal finalized earlier to finance Meta’s largest data center project, highlighting a potential shift in investor appetite for Blue Owl’s financing arrangements.
The broader private credit market is facing increased scrutiny. According to Reuters, a recent move by Blue Owl to limit withdrawals from one of its funds has sparked fresh anxiety within the $3 trillion private credit sector, particularly ahead of a planned merger. The industry is also contending with valuation pressures in the technology sector, driven by rapid advancements in artificial intelligence, which has impacted companies reliant on tech-sector lending. Competitors Apollo Global and KKR have also experienced share price declines.
Blue Owl Capital announced in July 2025 the final close of a private offering of an alternative credit fund, securing $850 million in capital commitments, according to a press release. The fund aims to provide current income and, to a lesser extent, capital appreciation through investments in asset-based finance, such as financing solutions secured by financial or hard asset collateral. Madeleine Sinclair, Head of Private Wealth, Americas at Blue Owl, stated at the time that the fundraise “reflects both the strength of Blue Owl’s global private wealth platform and investor confidence in our firm’s approach to credit solutions.”
The quality and valuation of private credit portfolios are under increasing examination, particularly following the bankruptcies of First Brands and Tricolor last year. The coming weeks will be critical for Blue Owl as it seeks to restore investor confidence, according to reports.
