Blue Owl founders promised a comeback, but the share price has barely moved

what happened

According to The Wall Street Journal, Blue Owl's promises to recover from the private-credit backlash have not yet been reflected in its stock. The shares are still about 67% below their record high from January 2025 and recently fell close to all-time lows.

The company disclosed this month that clients asked to pull 17% of their money from its largest private-credit fund in the latest quarter, more than most competitors faced. Fundraising from individual investors fell roughly 60% in the second quarter, while institutional fundraising dropped 22%, according to the firm's financial statements.

why it matters

The story matters for the private-credit market: fund outflows weigh on valuations of alternative asset managers and raise questions about loan portfolio quality. Strong fundraising for AI data centers could partly offset the pressure, though analysts warn of possible backlash against AI.

market impact

Alternative asset managers: fund outflows from private credit weigh on sector valuations

tags

instruments