Core Insights - The private credit market is facing significant pressure as Blue Owl Capital announced the sale of $1.4 billion in assets across three credit funds, which is aimed at returning capital to investors and reducing leverage [13] - The announcement has led to a broader selloff among alternative asset managers, indicating the interconnectedness of private markets and publicly traded financial stocks [2][10] Group 1: Market Reactions - The announcement from Blue Owl Capital unsettled investors, contributing to declines in shares of major firms such as Apollo Global Management, Ares Management, Blackstone, KKR, and Carlyle Group, reflecting anxiety about credit quality and valuation transparency [13] - The developments in private markets have quickly transmitted to publicly traded equities, highlighting how closely listed alternative managers are tied to sentiment around private credit [2][10] Group 2: Credit Quality Concerns - Industry participants have been grappling with questions around credit quality, particularly for portfolios with significant exposure to software and technology companies, as a notable share of the loans being sold is tied to this sector [5][13] - The weakness in private credit has coincided with declines in technology benchmarks within the broader S&P 500, linking concerns in private credit to wider movements in US equities [6][10] Group 3: Liquidity and Restructuring - The asset sale involves loans to over a hundred portfolio companies across multiple industries, with proceeds earmarked for investor distributions and debt reduction, reflecting a balancing act between providing liquidity and maintaining portfolio stability [7][13] - The restructuring follows earlier attempts to merge funds and manage redemption pressures, indicating the cautious approach of private credit managers in the current economic climate [7][8] Group 4: Systemic Risk and Financial Stability - Economist Mohamed El-Erian has indicated that developments in private credit could revive discussions about broader financial stability, prompting investors to reassess whether stresses in less liquid markets could foreshadow tighter conditions elsewhere [9][10] - The situation serves as a reminder that liquidity shifts and valuation adjustments in private assets can have significant repercussions on the US stock market, particularly in sectors like software and leveraged lending [11][10]

Market Overview - The three major US stock indices closed lower on Thursday, with the Dow Jones down 267.50 points (0.54%) at 49,395.16, the Nasdaq down 70.91 points (0.31%) at 22,682.73, and the S&P 500 down 19.42 points (0.28%) at 6,861.89 [2] - Concerns over risks in the private credit sector led investors to withdraw from financial stocks, while escalating tensions between the US and Iran put additional pressure on the market [2] - The S&P 500 index nearly erased all its gains for the year, and the Nasdaq has seen a year-to-date decline of 2.41% [2] Technology Sector Performance - Major tech stocks showed weak performance, with Apple down 1.43%, Netflix down 1.27%, Microsoft down 0.29%, Alphabet down 0.16%, and Nvidia down 0.04% [2] - In contrast, Meta rose 0.24% and Tesla increased by 0.12% [2] Company Highlights - Amazon officially surpassed Walmart to become the world's highest-grossing company, with Amazon's revenue at $716.9 billion for the fiscal year ending in December, compared to Walmart's $713.2 billion for the fiscal year ending in January [2] - Walmart's annual sales fell below Amazon's for the first time [2] Chinese Concept Stocks - The Nasdaq Golden Dragon China Index fell by 0.35%, with notable declines in Alibaba (down 0.96%), Pinduoduo (down 0.94%), and Baidu (down 0.55%) [3] - However, some stocks like Niu Technologies rose by 2.08% and Zhihu increased by 0.86% [3] Financial Sector Developments - Blue Owl Capital announced the sale of $1.4 billion in loan assets and tightened liquidity arrangements for investors, leading to a sell-off in private credit stocks [4] - Blue Owl Capital's stock fell by 5.93%, while Blackstone and Apollo Global Management also experienced declines of 5.37% and 5.21%, respectively [5] - The tightening of liquidity arrangements raised concerns about the liquidity risks associated with private credit funds [5] Software Sector Challenges - The software sector faced pressure, with Salesforce down 1.30%, Intuit down 2.06%, and Cadence Design Systems down 2.76% [5] - Concerns about AI potentially disrupting the industry have contributed to the sector's challenges, with a statement from Mistral AI's CEO suggesting that over 50% of enterprise software could be replaced by AI [6] Oil Market Dynamics - International oil prices continued to rise, with WTI crude oil futures up 1.90% at $66.43 per barrel and Brent crude oil futures up 1.86% at $71.66 per barrel [7] - Geopolitical risks in the Middle East, particularly regarding Iran, have been a driving factor behind the rising oil prices [7] - Additionally, a surprise decline in US crude oil inventories reported by the EIA further supported the increase in oil prices [8] Gold Market Update - Spot gold rose by 0.42% to $4,998.50 per ounce, while COMEX gold futures increased by 0.09% to $5,014 per ounce [9]

Key TakeawaysJapan’s National CPI slowed to 1.5% in January, marking the slowest pace of inflation in two years and signaling a potential shift in the Bank of Japan’s hawkish trajectory.Gold prices hovered near the historic $5,000 mark as traders weighed geopolitical risks involving Iran against cautious interest rate signals from the Federal Reserve.Blue Owl Capital Inc. (OWL) shares plunged 10% following a redemption halt at its Blue Owl Capital Corp II fund, sparking liquidity concerns across the private ...

The sale raises fears that the industry's efforts to court individual investors will suffer. ...

Core Viewpoint - U.S. equity markets faced volatility as resilient labor market data contrasted with a cautious outlook from Walmart, leading to concerns over consumer spending and geopolitical tensions impacting risk appetite [1]. Major Market Indexes Performance Recap - Major benchmarks ended in negative territory, with the S&P 500 declining 0.28% to 6,861.89, the Nasdaq Composite slipping 0.31% to 22,682.73, and the Dow Jones Industrial Average falling 267 points, or 0.54%, to close at 49,395.16 [2]. Small-Cap vs. Large-Cap Performance - The small-cap Russell 2000 managed a late-day recovery, finishing up 0.25%, indicating that smaller domestic-focused firms found support despite headwinds faced by larger retail and tech companies [3]. Economic Data Insights - Initial jobless claims fell to 206,000, significantly lower than the projected 223,000, marking the lowest level since early January, complicating the Federal Reserve's interest rate cut path [4]. - The U.S. trade deficit unexpectedly widened to -$70.3 billion in December, exceeding the forecasted -$56 billion, while the Philadelphia Fed Manufacturing Index rose to 16.3 in February from 12.6 the previous month, indicating strength in the industrial sector [5]. Corporate News and Stock Movements - Walmart reported better-than-expected fourth-quarter earnings and revenue but saw its stock fall 1.4% due to a disappointing profit forecast, overshadowing a $30 billion share buyback announcement [6]. - Deere & Company shares surged 11.6% after reporting higher-than-expected quarterly profits and raising full-year net income guidance to $4.5 billion to $5.0 billion [7]. - Etsy's stock increased by 21.2% following a significant earnings beat, while Booking Holdings dropped 7.1% amid competition concerns [8]. - Other notable stock movements included Occidental Petroleum rising 9.4%, Blue Owl Capital falling 5.9%, Robinhood Markets tumbling 11.3%, and Nvidia edging higher due to a partnership with Meta Platforms [8]. Upcoming Market Events - Investors are focused on upcoming corporate reports from Newmont Corp. and Consolidated Edison, as well as monitoring Live Nation Entertainment, Texas Roadhouse, and Sprouts Farmers Market for insights into consumer spending [9]. - Nvidia's earnings report is highly anticipated on February 25th, with geopolitical developments in Iran supporting oil prices, which rose 2.6% to $66.71 per barrel [10].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ FORM 10-K ___________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39653 ___________________________ BLUE OWL CAPITAL INC. (Exact name of regis ...

Blue Owl Move to Curb Redemptions at Private-Credit Fund Hits Alt Manager Stocks - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Blue Owl Move to Curb Redemptions at Private-Credit Fund Hits Alt Manager StocksBy [Andrew Bary]ShareResize---R ...

Core Viewpoint - Blue Owl Capital is experiencing significant stock weakness, with shares down 10% following a call where the CEO discussed changes in redemption methods and the cancellation of a planned merger [1][12]. Group 1: Redemption Changes - The company is changing its redemption method, opting to accelerate redemptions instead of resuming the previous five percent tendering of shares [1]. - Investors will receive 30% of their capital at book value within the next 45 days, which is six times the previously anticipated five percent [2]. - The CEO expressed confidence that investors will remain satisfied if the company continues to manage their capital effectively [3]. Group 2: Merger Cancellation - Blue Owl announced the cancellation of the merger between its two private credit funds, which was initially intended to combine the smaller OBDC II with the larger OBDC [4][5]. - The decision to terminate the merger was based on market reactions and the conclusion that it no longer made sense, despite the potential benefits of scale [6]. Group 3: Asset Sales - The firm announced the sale of a portfolio of OBDC II assets at book value, totaling $600 million, which represents approximately 35% of the fund's total assets [7]. - In total, $1.4 billion of assets are being sold, including $400 million from OBDC, due to significant demand from institutional investors [8]. Group 4: Portfolio Performance - The firm's portfolio has a strong focus on software, which has performed well, with borrowers in the software portfolio seeing revenue growth of 10% and EVIDAC growth of 16% in the fourth quarter [9][10]. - The company plans to take a discriminating approach towards new software loan purchases, maintaining that software is a significant sector but a relatively small percentage of the overall fund [11].

A fund that invests in the debt of middle-market companies has abandoned plans to ever let investors withdraw their money. - AFP via Getty Images A $1.6 billion fund at the center of concerns over private debt is now abandoning plans to let investors withdraw their money — sending shares of its investment manager, Blue Owl Capital, tumbling. Blue Owl Capital Corp. II, which invests in middle-market corporate debt and is halting redemptions, intends to make quarterly returns of capital distributions, the ...

Core Viewpoint - Blue Owl Capital has permanently halted quarterly redemptions from its Blue Owl Capital Corporation II fund (OBDC II), leading to a 9% drop in shares, raising concerns among investors about liquidity and capital access [1]. Company Actions - Blue Owl Capital will provide liquidity through periodic distributions instead of allowing redemptions, starting with approximately 30% of OBDC II's net asset value (NAV) by the end of March, funded by recent asset sales and loan repayments [1]. - The fund sold $600 million in loans at 99.7% of par value, indicating no immediate distress in the portfolio [1]. - The decision to halt redemptions follows a significant increase in redemption requests, which reached around $150 million in the first nine months of 2025, a 20% increase from the previous year [1]. Market Context - The private credit market, valued at $3 trillion, is experiencing rising pressures, with default rates projected to increase to 2% by volume, up from 1.5% in 2025 [1]. - The halt in redemptions has drawn comparisons to pre-2008 financial warnings, with media outlets expressing concerns about liquidity mismatches in the sector [1]. - Blue Owl's OBDC II was designed as a finite-life vehicle, launched in 2017 with an expected horizon of about 10 years, aligning with a potential wind-down around 2027 [1]. Investor Profile - The investors in OBDC II are typically high-net-worth or accredited individuals, not the average retail investors, indicating a more sophisticated understanding of the risks associated with private credit investments [1].