Blue Owl Capital (US:OWL) Businesswire·2025-12-05 01:00Core Viewpoint - A class action lawsuit has been filed against Blue Owl Capital for failing to disclose significant liquidity issues and pressures on its asset base due to BDC redemptions during the specified class period [2][6]. Financial Performance - Blue Owl reported third-quarter financial results on October 30, 2025, with new capital commitments of $14 billion for the quarter and $57 billion over the last twelve months. Direct lending originations were $10.9 billion for the quarter and $46.8 billion over the last twelve months. However, fee-related earnings were only $376.2 million, missing consensus estimates, and performance revenue fell 33% year over year to $188,000 [3]. - Following the financial report, Blue Owl's share price dropped by $0.70, or approximately 4.23%, from $16.56 to $15.86 [3]. Merger Announcement - On November 5, 2025, Blue Owl Capital Corporation and Blue Owl Capital Corporation II announced a definitive merger agreement, stating that the merger would enhance liquidity for shareholders. The exchange ratio for shares will be based on the NAV per share and market price prior to the merger [4]. - The announcement led to a decline in Blue Owl's share price by $0.74, or approximately 4.72%, from $15.69 to $14.95 [4]. Redemption Issues - A Financial Times article on November 16, 2025, reported that Blue Owl had blocked redemptions in one of its private credit funds, potentially leading to significant losses for investors. Investors in OBCD II will lose the ability to redeem cash at the fund's NAV after the merger, trading their shares for Blue Owl Capital Corporation shares, which are trading about 20% below the fund's NAV [5]. - This news caused Blue Owl's share price to decline by $0.85, or approximately 5.8%, from $14.62 to $13.77 [5].