Blue Owl Capital: Hyperion Turns Accounting Into A Credit Catalyst
2026-02-13 09:21:05 ET
The Blue Owl Capital stock ( OWL ) has been in steep decline since my last coverage in November. In addition to mishaps pertaining to the merger of its business development company (“BDC”) operations – namely, the publicly traded Blue Owl Capital Corporation ( OBDC ) and non-traded Blue Owl Corporation II (“OBDC II”) – the firm’s sentiment is further deteriorated in recent months, blighted by its acute exposure to AI-related financing. This is further corroborated by $527 million of withdrawals – or 15.4% of net assets – from its non-traded tech-focused “ Blue Owl Technology Income Cor p. ” (“OTIC”) fund last month after the firm raised the redemption limit to 17% from 5% previously. As acknowledged by management during Blue Owl Capital’s latest earnings update , the elevated redemptions signaled embedded “volatility and fear” amongst investors:
From a fundraising perspective, industry-wide non-traded BDCs experienced a slowdown in capital raising and elevated redemptions during the fourth quarter. This is in line with what we have seen in prior market environments with heightened volatility and fear.
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Blue Owl Capital: Hyperion Turns Accounting Into A Credit Catalyst
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