Brown University has significantly reduced its exposure to a listed private credit vehicle managed by Blue Owl Capital, trimming its holding by more than half, according to a report by Reuters citing a recent Form 13-F regulatory filing.
The Ivy League institution’s $8bn endowment cut its position in Blue Owl Capital Corp (OBDC), the firm’s flagship publicly traded business development company (BDC), to around 1.5 million shares as of 31 March. This compares with approximately 3.2 million shares held at the end of 2025, as disclosed in its latest 13-F filing.
Despite the reduction in the fund, Brown University maintained its full stake of roughly 2.6 million shares in Blue Owl’s management entity.
The move comes amid broader pressure on publicly listed BDCs, which have been trading at notable discounts. Investor concerns around valuation levels and signs of strain within private credit markets have weighed on sentiment toward the sector.
While large institutional allocators continue to back private credit strategies, demand from retail investors and high-net-worth individuals appears to be softening. A series of negative headlines in recent months has intensified scrutiny of the asset class, prompting some investors to reassess their exposure.
This shift is also reflected elsewhere in the market. AIG confirmed it has scaled back its private credit activity in response to current conditions.
OBDC, launched in 2016, is one of Blue Owl’s publicly traded BDC platforms, offering investors access to a diversified portfolio of private credit assets across both institutional and retail channels.
Business development companies provide equity-like access to pools of private loans, typically targeting middle-market borrowers. Their public listings allow investors to gain exposure to private credit through liquid securities.
Brown’s endowment remains diversified across public equities, private equity and real assets, and reported an 11.9% return for the 2025 fiscal year.
