Blue Owl redemption halt sparks jitters, but Asian private credit seen largely shielded

[SINGAPORE] The decision by alternative asset manager Blue Owl to halt quarterly redemptions for its unlisted fund Blue Owl Capital Corp II (OBDC II) has rattled markets, but industry players say the fallout is unlikely to spread to Asia.

Shares of Blue Owl have fallen 29.4 per cent or US$4.50 to US$10.81 since the start of 2026, as at Friday (Feb 20). The manager has since said that it would sell US$600 million of OBDC II’s assets to return capital to investors.

This represents about US$2.35 per share or 30 per cent of OBDC II’s net asset value. The fund will also be returning capital via quarterly distributions rather than redemptions, which will be funded by earnings, repayments, other asset-sale opportunities or strategic transactions.