Blue Owl Executives Purchased Shares Amid Concerns Over Private-Credit Impact on Company Funds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2025
0mins
Source: Barron's
- Market Reaction: Shares of business-development companies focused on private credit have experienced a sell-off over the past two months.
- Company Defense: Executives at Blue Owl Capital Inc. assert that their BDCs are financially sound and should not be trading at significant discounts to their asset values.
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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 21.13 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.
15 Analyst Rating
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 13.990
Low
18.00
Averages
21.13
High
28.00
Current: 13.990
Low
18.00
Averages
21.13
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.
Blue Owl Capital Faces Class Action Lawsuit
- Lawsuit Timeline: The class action lawsuit against Blue Owl Capital covers the period from February 6, 2025, to November 16, 2025, with investors required to apply by February 2, 2026, to serve as lead plaintiff, representing other affected investors in seeking compensation.
- Poor Financial Performance: In Q3 2025, Blue Owl reported fee-related earnings of $376.2 million, missing market expectations, with a margin of only 57.1%, approximately 20 basis points below forecasts, leading to a stock price decline and highlighting liquidity pressures faced by the company.
- Merger Agreement Impact: On November 5, 2025, Blue Owl's direct lending businesses announced a merger agreement, claiming it would enhance liquidity; however, the stock price fell nearly 5%, indicating investor unease about the future prospects of the company.
- Investor Loss Warning: An article in the Financial Times warned that the merger could result in OBDC II investors facing a 20% loss in investment value due to the exchange of shares at a discount, exacerbating the market's confidence crisis regarding Blue Owl Capital.
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Blue Owl Capital Faces Class Action Lawsuit
- Poor Financial Performance: Blue Owl Capital reported fee-related earnings of only $376.2 million for Q3 2025, missing market expectations, which led to a 4.23% drop in share price on October 30, 2025, indicating significant profitability pressures.
- Merger Agreement Impact: The announcement of a merger agreement with its subsidiaries was met with skepticism, resulting in a 4.72% decline in share price on November 6, 2025, reflecting investor concerns about the merger's prospects.
- Investor Confidence Eroded: An article in the Financial Times revealed that OBDC II investors could face a 20% loss due to the merger, exacerbating market fears regarding Blue Owl's liquidity issues, leading to a 5.8% drop in share price on November 17, 2025.
- Class Action Lawsuit Initiated: Investors have filed a class action lawsuit due to the company's failure to disclose liquidity pressures and asset base issues, with a deadline to file a lead plaintiff motion by February 2, 2026, highlighting significant dissatisfaction with corporate governance and transparency.
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