Jul. 10 at 6:11 AM
Interesting detail from today's Financial Times:
$OWL
The article suggests that a significant part of OTIC's redemption wave was driven by UBS Bank (huge wealth management player in asia), not by a sudden deterioration in Blue Owl's credit portfolio.
According to the FT, UBS advised certain wealth management clients with overweight private credit allocations to reduce their exposure. Since roughly 60% of OTIC's capital reportedly came from UBS clients (many in Asia), the fund was hit disproportionately.
So it looks like this wasn't primarily about
$OWL credit quality, valuation, or any fraud concerns. According to today's FT report, it was largely the result of a UBS recommendation for certain wealth management clients to reduce overweight private credit allocations.
That also explains why management repeatedly referred to the redemption activity as coming largely from Asian clients during the conference calls.
