economy
February 23, 2026
Activist hedge funds circle Blue Owl as private credit’s software jitters grow
Saba Capital and Cox Capital say their tender offer for Blue Owl fund shares offer a "liquidity solution" for retail investors.
TL;DR
- Saba Capital Management and Cox Capital Partners are launching tender offers for stakes in three Blue Owl Capital private credit funds.
- The offers aim to provide liquidity to retail investors amid a broader industry increase in BDC redemption requests and tighter liquidity terms.
- Blue Owl has recently offloaded significant loan assets from two of its funds, Blue Owl Capital Corporation II (OBDC II) and Blue Owl Technology Income Corp (OTIC).
- Concerns are growing over software valuations and a potential liquidity squeeze in private markets, with the software sector being heavily exposed to private credit.
- Blue Owl's co-president, Craig Packer, stated the firm is not trapping investors and that capital is being returned on an accelerated basis.
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