Key Takeaways
- • Short interest in Blue Owl Capital (OWL.N) has reached an all-time high, with about 14.1% of its free float shorted, up from nearly 12.5% two weeks earlier, according to data analytics firm Ortex.
- • Blue Owl shares were rocked in February after the firm said it would sell $1.4 billion of assets from three credit funds to return capital and pay down debt, and permanently halted redemptions at one fund.
- • Blackstone's flagship private credit fund BCRED faced a larger-than-usual $3.7 billion in first-quarter withdrawals from its $82 billion base, intensifying scrutiny of liquidity across semi-liquid private credit vehicles.
- • Short interest in Apollo Global Management (APO.N) stood at 5.9% of its free float and has been elevated since December, per Ortex.
- • Blue Owl shares were up 1.5% on Thursday but remain down more than 30% year to date.
Summary
Short sellers have increased bets against Blue Owl Capital, with short interest at all-time highs, as the private lending industry faces mounting concerns over liquidity and credit quality. According to data analytics firm Ortex, about 14.1% of Blue Owl's free float shares were shorted, up from nearly 12.5% two weeks earlier.
The pressure on Blue Owl followed a February announcement that the New York-based firm would sell $1.4 billion of assets from three of its credit funds so it can return capital to investors and pay down debt. The company also permanently halted redemptions at one of the funds. Shares were sharply lower after that disclosure.
The broader sector is under strain. Blackstone's flagship private credit fund, BCRED, an $82 billion vehicle, saw clients pull a larger than usual $3.7 billion in the first quarter. Shares of alternative asset managers including Blackstone, Ares Management and KKR have also declined sharply of late. Ortex data showed short interest in Apollo Global Management at 5.9% of its free float, elevated since December.
Blue Owl has also been a major financier of digital infrastructure, including a roughly $27 billion joint venture with Meta to build the Hyperion data center campus in Louisiana. Funds managed by Blue Owl take an 80% stake, while Meta retains about 20% and leases back the facilities. The deal reflects how large data center operators are turning to private capital to fund AI infrastructure build-outs.
Blue Owl shares rose 1.5% on Thursday but remain down more than 30% for the year so far, according to Reuters.
The pressure on Blue Owl followed a February announcement that the New York-based firm would sell $1.4 billion of assets from three of its credit funds so it can return capital to investors and pay down debt. The company also permanently halted redemptions at one of the funds. Shares were sharply lower after that disclosure.
The broader sector is under strain. Blackstone's flagship private credit fund, BCRED, an $82 billion vehicle, saw clients pull a larger than usual $3.7 billion in the first quarter. Shares of alternative asset managers including Blackstone, Ares Management and KKR have also declined sharply of late. Ortex data showed short interest in Apollo Global Management at 5.9% of its free float, elevated since December.
Blue Owl has also been a major financier of digital infrastructure, including a roughly $27 billion joint venture with Meta to build the Hyperion data center campus in Louisiana. Funds managed by Blue Owl take an 80% stake, while Meta retains about 20% and leases back the facilities. The deal reflects how large data center operators are turning to private capital to fund AI infrastructure build-outs.
Blue Owl shares rose 1.5% on Thursday but remain down more than 30% for the year so far, according to Reuters.
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