Blue Owl Capital has played down concerns over AI-driven disruption to its software investments, as the alternative asset manager continues to face elevated redemption requests across some private credit funds, according to a report by Bloomberg.
James Clarke, the firm’s global head of institutional capital, acknowledged that artificial intelligence would disrupt the software industry but maintained that Blue Owl’s portfolio was concentrated in differentiated businesses.
Investor concerns over private credit loan quality, particularly among software borrowers exposed to AI competition, have contributed to withdrawal requests from the asset class.
Although redemption pressures eased during the third quarter, Clarke reportedly said investor sentiment remained volatile. Blue Owl has increased communication with clients to address concerns about its private credit portfolios.
The firm is also targeting opportunities in data centre financing, particularly outside the US. Blue Owl currently has 130 data centre locations globally, with approximately 14% located in Asia-Pacific, including facilities in Tokyo and Osaka.
In the US, Blue Owl remains committed to its Project Jupiter data centre development with Oracle, despite the technology group invoking force majeure last month in response to rising costs.
Blue Owl is reportedly also expanding its Japanese institutional and wealth management relationships, having recently appointed former Barclays executive Takeo Ikemori to jointly lead its Japan business.
