Blue Owl private credit fund will lower software exposure, CEO says

The stock of bundle assets successful Blue Owl ​Capital Corp declined to 16% from 19% successful the archetypal 4th of the year, Craig Packer told analysts connected a league telephone connected Thursday.

This happened "naturally" arsenic borrowers repaid loans, Packer said. "We're going to proceed to be, I think, precise cautious ‌in software, and arsenic ⁠we get repayments astir apt look to proceed to instrumentality that down," helium added.

Private equity and recognition firms invested heavy successful ⁠enterprise bundle companies during and aft the COVID-19 pandemic. Investors person since go progressively tense astir the precocious valuations assigned to immoderate of those assets.

Blue Owl has ​faced peculiar ​scrutiny arsenic backstage recognition came nether ​an uncomfortable spotlight. Its banal has ‌started to retrieve from lows deed successful March and April but is inactive trading 30% little connected the year.

OBDC chopped its dividend to 31 cents per stock from 36 cents per stock successful the archetypal quarter, arsenic it marked down the wide worth of its assets by 2.7% to $14.41 per ‌share.

Packer said it had been tougher to present ​earnings owed to reductions successful some rates ​and hazard premiums, but said ​borrower show was unchangeable and helium expected much request for ‌direct lending.

OBDC and different fund, Blue ​Owl Technology Finance Corp, ​bought backmost a combined $85 cardinal of their ain banal successful the archetypal quarter.

OBDC's shares were down 1.8% connected the time and down 7.1% ​so acold this year. ‌OTF's shares were down 5.4% connected the time and down astir ​23% connected the year.

(Reporting by Isla Binnie successful New York; Editing ​by Chizu Nomiyama and Matthew Lewis)