Blue Owl says it is not halting investor liquidity in private debt fund

NEW YORK, Feb 19 (Reuters) – Private capital firm Blue Owl said on Thursday it was not halting investor liquidity, or access to cash, from a private debt fund, after a move to replace quarterly redemption opportunities with payouts weighed on the group’s shares.

“We are not halting investor liquidity in” non-traded debt fund Blue Owl Capital Corp II,” Blue Owl said in a statement a day after saying it would return 30% of the net asset value of the fund to investors, and stop quarterly redemptions.

Instead of resuming a tender offer process in which investors could seek to redeem 5% of capital, Blue Owl said its new plan would mean “we are returning six times as much capital and returning it to all shareholders over the next 45 days. In the coming quarters we will continue to pursue this plan to return capital to OBDC II investors.” 

(Reporting by Isla Binnie; Editing by Chris Reese)