Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Blue Owl Capital Inc. due to allegations of violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by February 2, 2026 [1][3]. Group 1: Allegations Against Blue Owl Capital - The complaint alleges that Blue Owl and its executives made false or misleading statements and failed to disclose significant issues, including pressure on its asset base from BDC redemptions [3]. - It is claimed that Blue Owl is facing undisclosed liquidity issues and may limit or halt redemptions of certain BDCs, which misled investors regarding the company's business and prospects [3]. - The Financial Times reported that Blue Owl has blocked redemptions in one of its private credit funds due to a merger, potentially leading to large losses for investors [4]. Group 2: Impact on Investors - Following the news of the merger, investors in Blue Owl Capital Corporation II will permanently lose the ability to redeem cash at the fund's Net Asset Value (NAV), instead trading shares for publicly traded Blue Owl shares, which are currently about 20% under NAV [5]. - On November 17, 2025, Blue Owl's stock price fell by $0.85, or 5.8%, closing at $13.77 per share, indicating a negative impact on investors [5]. Group 3: Legal Proceedings - The lead plaintiff in the class action will be the investor with the largest financial interest who can adequately represent the class, with options for other members to participate or remain absent [6]. - Faruqi & Faruqi encourages individuals with information regarding Blue Owl's conduct to come forward, including whistleblowers and former employees [7].

Core Viewpoint - Blue Owl Capital Inc. is facing a class action lawsuit due to allegations of misleading statements and undisclosed liquidity issues that have negatively impacted investors during the Class Period from February 6, 2025, to November 16, 2025 [1][4]. Group 1: Company Actions and Events - On November 16, 2025, it was reported that Blue Owl has blocked redemptions in one of its private credit funds as it merges with a larger vehicle, potentially leading to significant losses for investors [2]. - Following the announcement of the merger, investors in Blue Owl Capital Corporation II will lose the ability to redeem cash at the fund's Net Asset Value (NAV) and will instead exchange their shares for publicly traded Blue Owl shares, which are currently trading approximately 20% below the fund's NAV [3]. - The stock price of Blue Owl fell by as much as 6% during intraday trading on November 17, 2025, indicating a negative market reaction to the news [3]. Group 2: Legal Proceedings - The class action lawsuit alleges that Blue Owl's management made materially false and misleading statements and failed to disclose critical information regarding the company's asset base and liquidity issues [4]. - The lawsuit claims that the company was under pressure from Business Development Company (BDC) redemptions, which led to undisclosed liquidity problems and the likelihood of limiting or halting redemptions [4]. - Investors who purchased Blue Owl securities during the Class Period have until February 2, 2026, to file a lead plaintiff motion in the class action lawsuit [5].

Core Viewpoint - Billionaire investor Jeffrey Gundlach warns that the private credit market in America is showing signs of distress, likening it to the unregulated CDO market before the 2008 financial crisis, describing it as "the Wild West" of finance [1][3]. Private Credit Market Overview - Private credit involves direct loans to companies from investors or funds, bypassing traditional banks, and has evolved into a multitrillion-dollar market [4]. - These funds aggregate capital from pension funds, insurance companies, and wealthy investors, offering loans that typically yield higher interest rates than conventional bonds or bank loans [4]. Market Conditions and Trends - Gundlach indicates that the private credit market is experiencing a shift from theoretical concerns to real challenges, with some firms likely to survive while others may face difficulties [2]. - The recent decision by Blue Owl Capital Corporation to abandon plans to merge its private credit funds reflects current market volatility, impacting stock prices of related entities [3]. Risks and Concerns - The private credit market is characterized by a lack of public market pricing, reduced regulation, and limited transparency and liquidity, which can pose risks during adverse market conditions [6]. - Gundlach highlights a specific case where a reputable firm marked bonds at 100 cents on the dollar, only to revise the valuation to zero a month later, illustrating the potential for drastic valuation changes [7]. - The illiquidity in private credit could exacerbate financial distress, similar to the liquidity squeeze seen during the 2008 crisis, where investors struggled to meet capital calls [8]. Market Dynamics - Gundlach emphasizes that in a fearful market, investors tend to shy away from illiquid assets, leading to a mismatch between large asset pools and liquidity needs during stressful times [9].

Core Viewpoint - Jeffrey Gundlach, CEO of DoubleLine Capital, warns that many assets are overpriced and suggests investors maintain 20% of their portfolios in cash to guard against a potential downturn [1][2]. Market Conditions - Gundlach describes the current stock market as dangerously speculative, indicating it is among the least healthy he has observed in his career [2]. - He highlights speculative excess in AI-related stocks and data-center investments, cautioning that momentum investing during a boom can lead to negative outcomes [2]. Private Credit Concerns - Gundlach expresses significant concern over the rapid growth of the private credit market, valued at $1.7 trillion, which lends directly to companies [3]. - He compares the current situation in private credit to the subprime mortgage crisis, noting that lenders are making "garbage loans" [3][4]. - Recent failures in the sector, such as auto lender Tricolor and car parts supplier First Brands Group, are seen as early warning signs of potential issues [3]. Risks of Retail Investment in Private Credit - Gundlach criticizes the trend of selling private credit funds to retail investors, labeling it a "perfect mismatch" due to the promise of easy withdrawals despite the illiquid nature of these assets [4]. - He warns that if investors withdraw funds, it may force these funds to sell at significant losses [4]. Investment Strategy - Despite his warnings, Gundlach acknowledges the difficulty in profiting directly from this perspective, stating he will not short junk bonds due to ongoing losses [5]. - He maintains a positive view on gold but has reduced his recommended allocation from 25% to 15%, citing persistent inflation concerns driven by tariffs on import prices [5].

Financial Data and Key Metrics Changes - Ares Management reported a quarterly dividend of $1.12 per share, representing a 20% increase compared to the same quarter last year [4] - The company achieved a record management fee of $900 million, reflecting a 24% year-over-year increase [33] - Fee-related earnings (FRE) for the quarter were $409 million, marking a 26% year-over-year growth, with FRE margins at 41.2% [35] Business Line Data and Key Metrics Changes - The total assets under management (AUM) increased to $572 billion, showing a quarter-over-quarter organic growth of 19% on an annualized basis [8] - Fee-paying AUM (FPAUM) rose to $350 billion, representing a quarter-over-quarter organic growth of 17% on an annualized basis [9] - The secondaries business saw a 29% increase in AUM to nearly $34 billion, with $2.5 billion raised during the quarter [16] Market Data and Key Metrics Changes - In the U.S. direct lending market, the company experienced a year-over-year comparable EBITDA growth of 13% with a low loan-to-value ratio of 43% [25] - European direct lending showed strong performance with a loan-to-value ratio of 49% and interest coverage of 2.3x, indicating healthy credit quality [70] - The company raised over $1.3 billion in infrastructure, including $850 million for its first Japan data center development fund [15] Company Strategy and Development Direction - Ares Management is focused on expanding its wealth distribution network, now partnering with over 80 firms globally, a 33% increase year-over-year [19] - The company is optimistic about the growth potential in the data center and digital infrastructure sectors, leveraging its recent GCP acquisition [30] - Ares aims to capitalize on the increasing demand for private credit and alternative investments, particularly in the wealth channel [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business amid market volatility, with strong fundraising and investment performance [7] - The company anticipates a strengthening transaction market environment in the third quarter, supported by lower short-term rates and significant private equity dry powder [28] - Management highlighted the importance of maintaining a balance between capital growth and quality deployment to mitigate risks [60] Other Important Information - The integration of GCP is progressing well, with expected synergies contributing positively to the financial outlook [32] - The company reported a net accrued performance income balance of $1.1 billion, an 8.5% increase from the previous quarter [10] - Ares Management's insurance platform, Aspida, generated over $1.9 billion in new premiums during the quarter, indicating strong demand [22] Q&A Session Summary Question: Discussion on private credit and institutional demands - Management noted that while private credit fundraising has been down sequentially, Ares continues to see institutional appetite for private credit, maintaining fee structures despite market pressures [47][49] Question: Opportunities in alternative investments - Management emphasized their commitment to democratizing access to alternative investments and readiness to offer products as the market opens [56][58] Question: Update on deployment pipelines - Management expressed confidence in the growing pipelines across various business segments, including direct lending and real estate, despite market fluctuations [64] Question: Comparison of European and U.S. direct lending markets - Management indicated that European markets are becoming more attractive due to different rate trajectories, with credit quality remaining stable across both regions [70] Question: Investment in distribution and partnerships - Management confirmed ongoing investments in product development and distribution efforts, particularly in international markets, to drive growth [76][78]