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].

Market Overview - The Dow Jones Industrial Average fell 271.87 points to 49,390.79, down 0.55% as investors reacted to various factors including Walmart's earnings, rising oil prices, and escalating US–Iran tensions [1][23][24] - The S&P 500 Index dropped 25.42 points to 6,855.89, a 0.37% decline, while the Nasdaq Composite slid 76.03 points to 22,677.60, down 0.33% [23] Walmart Earnings - Walmart reported stronger-than-expected fourth-quarter results with annual revenue reaching $713.5 billion for the fiscal year ended January 31 [10][24] - E-commerce grew 24% year over year in the fourth quarter, and advertising revenue increased by 37% [10][24] - However, the company's full-year earnings guidance disappointed investors, leading to tempered enthusiasm despite market share gains among higher-income consumers [11][24] Amazon's Revenue Milestone - Amazon surpassed Walmart in total annual revenue, reporting $716.9 billion in net sales for 2025, reflecting strength in retail and cloud computing [12][24] - This shift underscores the ongoing dominance of tech-enabled platforms in global commerce [13][24] Geopolitical Tensions and Oil Prices - Geopolitical risk escalated as President Trump indicated potential military strikes against Iran, causing oil prices to surge [7][8][24] - WTI crude oil rose to $66.57, up 2.34%, while Brent crude increased to $70.72, up 2.18%, raising concerns about inflation and corporate profit expectations [7][24] Asset Management Sector - Asset manager stocks experienced significant declines following Blue Owl Capital's announcement to tighten investor liquidity after selling $1.4 billion in loan assets [14][24] - This move raised concerns about liquidity across private credit markets, contributing to the broader market decline [15][24] Software-as-a-Service (SaaS) Sector - SaaS stocks faced pressure as industry leaders warned that generative AI could replace up to 50% of enterprise software tasks, leading to declines in companies like Salesforce, Intuit, and Cadence Design Systems [2][16][24] - The Nasdaq remains sensitive to shifts in AI sentiment, with small comments triggering rotations out of high-multiple growth stocks [16][24] Shipping Sector Performance - The global shipping sector saw a significant breakout, with the SonicShares Global Shipping ETF (BOAT) reaching an all-time high due to climbing freight rates driven by capacity constraints and regulatory changes [5][24] - Companies like Pan Ocean and HMM reported gains of 8% and 5%, respectively, indicating a shift in market leadership towards physical economy sectors [5][21][24] Sector Rotation and Market Sentiment - Market strategists noted a broader rotation in market leadership, with industrials and consumer cyclicals positioned to benefit from infrastructure investment and AI-driven efficiency gains [18][21][24] - Despite energy stocks showing relative strength, broader market sentiment turned cautious amid geopolitical uncertainties and rising oil prices [18][24]

Key TakeawaysUS Crude inventories plunged by 9.014 million barrels, a massive surprise compared to analyst expectations of a 1.65 million barrel build, sending oil futures sharply higher.Blue Owl Capital (OWL) halted redemptions at one of its funds, triggering a broader sell-off in private credit stocks as liquidity concerns surfaced.The European Central Bank (ECB) sanctioned JPMorgan Chase (JPM) with a €12.18 million fine for misreporting capital requirements.Mortgage rates continued their downward trend, ...

Things are getting from bad to worse for Private Credit giant Blue Owl Capital.The last time we looked at the firm's precarious liquidity situation about a month ago, we found that the Blue Owl BDC would allow for 17% redemptions as investors, burned by both the tumbling stock price and the company's massive exposure to ticking private credit time bombs, were storming for the exit. Blue Owl BDC Allows for 17% Redemptions as Investors Storm Exit: BBG— zerohedge (@zerohedge) January 7, 2026One month later, it ...

Group 1 - Blue Owl Capital's shares fell nearly 3% in pre-market trading following the sale of $1.4 billion in loan assets from three private debt funds [1] - The sale involved four North American pension and insurance investors, with the loans sold at 99.7% of par value [1] - The largest portion of the sale came from the Blue Owl Capital Corporation II fund (OBDC II), which sold $600 million in loans, representing about 34% of its $1.7 billion portfolio [2] Group 2 - Following the sale, OBDC II will discontinue regular quarterly liquidity payments to its investors, marking a significant change in its strategy [2] - The stock was reported down 2.8% in pre-market trading as of 8:06 a.m. ET [2]

Economist Mohamed El-Erian took to X (formerly Twitter) on Thursday morning with a question after Blue Owl Capital Inc (NYSE:OWL) permanently halted redemption at its retail private credit fund.“Is this a ‘canary-in-the-coalmine’ moment, similar to August 2007?” El-Erian wrote, citing a Financial Times report that Blue Owl “will permanently restrict investors from withdrawing their cash from its inaugural private retail debt fund.” The idiom references the historical mining practice of using caged canaries ...