Blue Owl Capital Faces Lawsuit as Investors Suffer Significant Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
0mins
Source: Globenewswire
- Legal Investigation Initiated: Faruq & Faruq LLP is investigating Blue Owl Capital's securities transactions between February and November 2025, as allegations arise that the company may have violated federal securities laws, leading to significant investor losses.
- Liquidity Issues Exposed: The complaint alleges that Blue Owl is facing undisclosed liquidity issues due to pressure from BDC redemptions, which may lead to limitations or halts on certain BDC redemptions, exacerbating investor concerns.
- Merger Impact: Reports indicate that investors in Blue Owl Capital Corporation II are restricted from redeeming funds until the merger with Blue Owl Capital is completed, after which they will permanently lose the ability to redeem cash at the fund's Net Asset Value (NAV), resulting in potential substantial losses for investors.
- Stock Price Decline: Following this news, Blue Owl's stock price fell by $0.85, or 5.8%, closing at $13.77 per share on November 17, 2025, directly impacting the financial situation of its investors.
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: 15.780
Low
18.00
Averages
22.00
High
28.00
Current: 15.780
Low
18.00
Averages
22.00
High
28.00
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
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.
