Blue Owl Capital Faces Class Action Lawsuit Over Liquidity Issues Amid $14B Capital Commitments
Written by Emily J. Thompson, Senior Investment Analyst
Source: Businesswire
Updated: 3 hour ago0mins
- Liquidity Crisis Exposed: Blue Owl Capital disclosed $14 billion in new capital commitments for Q3 2025, yet failed to reveal liquidity issues stemming from business development company redemptions, potentially undermining investor confidence.
- Performance Miss: Despite $46.8 billion in direct lending originations over the past year, the company reported only $376.2 million in fee-related earnings, missing market expectations and leading to a 4.23% drop in share price.
- Merger Agreement Impact: Following the announcement of a merger agreement with two BDCs, Blue Owl's stock fell by 4.72%, indicating a lack of market confidence in the merger's potential to enhance liquidity for shareholders.
- Investor Redemption Restrictions: A Financial Times report revealed that Blue Owl has blocked redemptions in an early private credit fund, meaning investors will lose the ability to redeem at net asset value post-merger, further heightening market anxiety.
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Analyst Views on OWL
Wall Street analysts forecast OWL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OWL is 22.00 USD with a low forecast of 18.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 15.660
Low
18.00
Averages
22.00
High
28.00
Current: 15.660
Low
18.00
Averages
22.00
High
28.00
JPMorgan
Neutral
downgrade
$22 -> $20
2025-11-03
Reason
JPMorgan
Price Target
$22 -> $20
2025-11-03
downgrade
Neutral
Reason
JPMorgan lowered the firm's price target on Blue Owl Capital to $20 from $22 and keeps a Neutral rating on the shares. The firm updated the company's model post the Q3 report.
Oppenheimer
Oppenheimer
Outperform
maintain
$24 -> $25
2025-10-31
Reason
Oppenheimer
Oppenheimer
Price Target
$24 -> $25
2025-10-31
maintain
Outperform
Reason
Oppenheimer raised the firm's price target on Blue Owl Capital to $25 from $24 and keeps an Outperform rating on the shares. The firm notes the company's Q3 earnings call had some ammo for both points of view on Warren Buffett's famous maxim, "Be fearful when people are greedy, and greedy when others are fearful." Oppenheimer is solidly in the "greedy" camp at this juncture.
Evercore ISI
Glenn Schorr
Outperform
downgrade
$21 -> $19
2025-10-31
Reason
Evercore ISI
Glenn Schorr
Price Target
$21 -> $19
2025-10-31
downgrade
Outperform
Reason
Evercore ISI analyst Glenn Schorr lowered the firm's price target on Blue Owl Capital to $19 from $21 and keeps an Outperform rating on the shares. Blue Owl's latest earnings report was a mixed bag, with the stock dropping 4% post-announcement, partly due to external noise from a Wall Street Journal article on unrelated credit events, the analyst tells investors in a research note. The firm added, however, that the company's core story remains strong, with growth in several key areas.
Barclays
Benjamin Budish
Overweight
downgrade
$21 -> $19
2025-10-31
Reason
Barclays
Benjamin Budish
Price Target
$21 -> $19
2025-10-31
downgrade
Overweight
Reason
Barclays analyst Benjamin Budish lowered the firm's price target on Blue Owl Capital to $19 from $21 and keeps an Overweight rating on the shares. The company's free income missed estimates in Q3 but the tone from management was optimistic, the analyst tells investors in a research note.
See All Ratings
About OWL
Blue Owl Capital Inc. is an alternative asset management company. The Company deploys private capital across Credit, GP Strategic Capital and Real Estate platforms on behalf of institutional and private wealth clients. Its product platforms include Credit, GP Strategic Capital and Real Estate. Its credit products offer private financing solutions primarily to upper-middle-market companies. Its credit products are offered through a mix of business development companies, long-dated private funds, managed accounts and collateralized loan obligations. It is focused on acquiring equity stakes in or providing debt financing to private capital firms. Its Real Estate products are focused on acquiring triple net lease real estate occupied by investment-grade or creditworthy tenants. Its Real Estate products are offered through Permanent Capital vehicles, including its real estate investment trusts, and long-dated private funds. It offers asset management services to the insurance industry.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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