The Canary in the Coal Mine
... search news quote: "Blue Owl, a private credit fund company and financier of data centers, (is) halting redemptions" Blue Owl Capital has permanently restricted investor withdrawals from its retail-focused private credit fund, Blue Owl Capital Corp II (OBDC II), reversing an earlier plan to resume quarterly redemptions. The move, announced on February 20, 2026, means investors will no longer be able to redeem shares on a scheduled basis. Instead, the company will return capital through periodic distributions funded by loan repayments, asset sales, and strategic transactions. The decision follows a $1.4 billion sale of credit assets across three of its funds, including $600 million from OBDC II, sold at 99.7% of par value. Blue Owl stated that this capital will be used to return 30% of the fund’s net asset value to investors by March 31, a significant increase compared to the previous 5% quarterly redemption cap. While Blue Owl co-President Craig Packer emphasized t...