Blue Owl Capital has recorded its strongest share price performance since late 2022, buoyed by improving investor sentiment and reassurances from major US banks on private credit exposure, according to a report by Bloomberg.
The firm’s stock climbed roughly 17% over a two-day period, recovering from recent lows driven by concerns over the $1.8tn private credit market and its concentration in sectors such as software.
Confidence in the asset class strengthened after leading Wall Street banks, reporting quarterly results, indicated that their exposure to private credit remains under control. Similar comments from US Treasury Secretary Scott Bessent, who suggested no evidence of systemic risk, further helped stabilise sentiment.
Blue Owl outpaced peers including Ares Management, Apollo Global Management and KKR, all of which also benefited from a broader market rally that pushed the S&P 500 to record levels.
Market participants pointed to a combination of supportive bank commentary, improved macro sentiment and positioning-driven buying following earlier weakness as key drivers of the rebound.
Additional support came from renewed activity in capital markets. A $400m bond issuance by a Blue Owl-affiliated business development company was fully absorbed by a single institutional investor, marking a reopening of unsecured debt issuance in the BDC space after a brief lull. A subsequent $750 million deal from a Goldman Sachs-backed vehicle signalled further momentum, with more issuers expected to return to the market.
Blue Owl, formed through the merger of Owl Rock Capital Group and Dyal Capital Partners and listed in 2021, has been among the firms most closely watched amid recent volatility in private credit.
