Blue Owl Capital is preparing to launch its first fund focused on buying secondhand private credit assets, marking a strategic expansion into the fast-growing credit secondaries market, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as highlighting that the planned strategy would target stakes in private credit funds being sold by existing investors, often at discounted prices, as managers and institutions seek liquidity in a more volatile fundraising and dealmaking environment.
The move comes as the broader private credit secondaries market has expanded rapidly, with transaction volumes nearly doubling to around $20 billion last year from approximately $11 billion in 2024. The growth has been driven by increased demand from investors looking to exit positions while traditional merger and acquisition activity remains subdued.
Blue Owl’s initiative places it alongside other major alternative asset managers exploring or expanding into the same space, including Ares Management, Pantheon, and Blackstone, all of which have been active in developing credit secondaries strategies.
The development comes after a period of heightened scrutiny for Blue Owl and the wider private credit sector, amid concerns that artificial intelligence could disrupt software-heavy lending portfolios. However, sentiment has recently improved as fears of widespread credit deterioration have eased.
Earlier this year, Blue Owl temporarily capped redemptions in some funds following elevated withdrawal requests, but more recent performance has strengthened. The firm reported a 14% increase in first-quarter fee-related earnings to $393.6m, with assets under management rising to $315 billion, driven in part by growth in its real assets business.
Co-chief executive Marc Lipschultz has previously described the secondaries market as an attractive opportunity given the increasing number of sellers seeking liquidity.
Industry peers have also moved aggressively into the space, with large fundraising efforts underway across the sector as investors increasingly view credit secondaries as a key liquidity and portfolio management tool in private markets.
