Doug Ostrover, co-founder and co-CEO of Blue Owl Capital, has attributed recent investor unrest in private credit to the industry’s own actions rather than underlying loan performance, according to a report by the Financial Review.
Redemptions from Blue Owl, along with funds at Morgan Stanley, BlackRock, and Apollo, and Ares, have surged as concerns over riskier borrowers weighed on investor sentiment.
However, Ostrover said that concerns about loan quality have been overstated, and that portfolios are healthy, and demand for private credit among individual and institutional investors remains strong, despite recent market turbulence and a focus on potential problems in the software sector.
Blue Owl shares have tumbled 65% from their peak, while hedge funds and activist investors have moved to profit from discounted fund positions.
