Blue Owl Capital Corp. falls after cutting its dividend
Blue Owl Capital Corp. reported lower-than-expected total investment income in Q1 and declared a dividend of $0.31 per share, down from an announced $0.37 in Q4.
Shares are down nearly 4% in premarket trading.
The business development company managed by Blue Owl Capital is front and center when it comes to worries about private credit, an asset class that’s faced a surge in redemption requests as investors worry about deteriorating loan quality.
This report follows Blue Owl Capital’s results last week, in which the firm highlighted strong fee-related earnings and continued capital commitments — effectively, that other parts of its business were more than offsetting any conniptions in private credit. Executives sought to downplay the redemption concerns, describing the recent waves as more “headline driven, not fundamental driven.”
Nonetheless, sentiment toward the asset class remains fragile. Brown University announced last Friday that it is cutting its stake in OBDC by roughly 53%, slashing exposure to one of Blue Owl’s flagship listed credit vehicles even as it maintained holdings in the parent manager.
