Blue Owl Tells Investors Its Loan Sale Had No Hidden Incentives

Blue Owl Capital Inc. defended its recent sale of $1.4 billion of loans from three of its funds, arguing the transaction contained no backstops or hidden incentives, as the asset manager remains a primary target of bets on a private-credit reckoning.

In a private conference call last week with investors, Blue Owl Co-President Craig Packer said the four institutions that struck a deal with the firm did so on an arm’s length basis, conducted their own due diligence, bought the debt on the same terms and received no special guarantees.