Blue Owl BDC's CEO, Craig Packer, was interviewed by CNBC on the New York Stock Exchange floor on November 19, 2025. The discussion focused on a significant $1.4 billion loan sale by the company. Blue Owl, known for providing direct loans to the software industry, sold these loans to institutional investors at 99.7% of their par value. This transaction indicated confidence among sophisticated investors regarding the loans and the accompanying companies, which Packer emphasized in several interviews this week.
However, the reaction from the markets was not as positive as anticipated. Shares of Blue Owl and other alternative asset managers experienced a downturn amidst concerns about future implications. The asset sale was coupled with Blue Owl's decision to shift from voluntary quarterly redemptions to mandated 'capital distributions'. These distributions would be funded by future asset sales, earnings, or other transactions.
'The optics are bad, even if the loan book is fine,' commented Brian Finneran from Truist Securities in a note on Thursday. There is a perception among investors that the sales were forced to meet accelerated redemption requests, requiring the sale of high-quality assets.
In addressing these concerns, Packer stated that the firm was not halting redemptions but merely changing their form, clarifying that investors could expect to receive about 30% of their funds back by March 31. This is significantly higher than the previous quarterly redemption cap of 5%. Packer reiterated on Friday that, 'If anything, we're accelerating redemptions.'