Blue Owl Capital has raised $400m (£296m) for its private credit fund through a new bond offering, according to SEC filings.
The bonds, issued by its listed company Blue Owl Capital Corp. (OBDC), are set to mature in 2028, and were offered at a 6.5 per cent yield.
Read more: Blue Owl fund outlook cut by Moody’s after redemption surge
It comes amid ongoing pressure for Blue Owl across its business development companies. The firm recently changed the redemption structure of Blue Owl Capital Corporation II, switching from quarterly tender offers to quarterly return-of-capital distributions. This meant that shareholders can no longer request additional redemptions due to high levels of withdrawal requests.
Blue Owl’s funds are not the only ones facing rising redemption pressure. Other major private credit managers, including Blackstone, Ares and KKR, have also seen increased redemption requests, driven primarily by concerns over the impact of AI on software investments.
Read more: Adams Street closes third private credit platform with $7.5bn capital
However, Moody’s Ratings recently downgraded the outlook for one of Blue Owl Capital’s private credit funds from stable to negative after it received higher redemption requests than its peers.
Blue Owl was contacted for further comment.
