Blue Owl Considers Private Credit Fund Merger Revival

Imagine being told your investment would be merged, forcing you into an instant 20% loss. That’s the backlash Blue Owl Capital faced, but it’s now eyeing a second attempt at a massive private credit fund merger. The firm initially scrapped the deal to combine its publicly-traded $17.1 billion OBDC fund with its private OBDC II fund after investors revolted against the potential 20% loss caused by the public fund's discounted share price. The revival now hinges on OBDC’s stock rising from ~$12.34 closer to its $14.89 net asset value, ensuring a fair deal for all shareholders. This high-stakes maneuver is a critical test for the booming private credit industry, determining future investor appetite for these popular but less-liquid investments. For investors, this offers a path to cash out of a private fund by converting holdings into public stock, while for Blue Owl, it creates a larger, more cost-effective credit powerhouse.