economy
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.