Mar. 4 at 8:50 PM
Blue Owl Capital has come under pressure amid rising fears of stress in private credit, but Oppenheimer analyst Chris Kotowski argues those concerns are overstated. Despite a surge in redemption requests across business development companies (BDCs)—up 200% in the fourth quarter—and Blue Owl’s decision to halt quarterly redemptions in its retail private credit fund, Kotowski maintains an Outperform rating with a
$17 price target.
Private credit anxiety intensified after Blackstone reported record first-quarter redemption requests in its flagship fund. Blue Owl has also faced scrutiny following a
$1.4 billion loan asset sale and its exposure to software and AI, sectors hit by recent market volatility.
Still, Kotowski says overall credit quality remains strong, highlighting Blue Owl’s flagship publicly traded BDC, where net asset value has risen over the past decade while delivering substantial dividends.
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