Feb. 22 at 5:56 AM
$OWL THE
$2 TRILLION PRIVATE CREDIT MARKET COULD BE FACING ITS FIRST MAJOR BANKRUPTCY.
Blue Owl manages about
$273 billion in assets. It is one of the biggest lenders behind the AI data center buildout.
When companies like Meta, CoreWeave, or Crusoe need billions to build large data center campuses, they often go to private credit firms like Blue Owl instead of issuing public bonds. Blue Owl structures the loans and brings in capital from pensions and insurance companies.
These deals are massive:
-
$27B joint venture with Meta in Louisiana
-
$15B deal with Crusoe in Texas
-
$5B backing CoreWeave
Now here is what raised concerns.
Blue Owl’s
$14 billion non traded private credit fund, a vehicle that allows retail investors to access private loans, recently restricted withdrawals.
Limiting withdrawals raises serious concerns because it can signal liquidity stress or losses inside the portfolio.
At the same time,
$OWL is down about 55% over the past year.
