Blue Owl Capital: 5 Takeaways From Dinner With Co-CEO & CFO

BofA maintains a Buy rating on Blue Owl Capital (OWL) with a $18 price objective, citing strong fundamentals in ABF and Real Assets as offsets to private credit slowdowns. The firm expects redemption pressures to abate significantly by 3Q26.

Key Takeaways

• 1.Blue Owl's Real Assets and ABF businesses are expected to offset the slowdown in private credit growth in evergreen vehicles.
• 2.Institutional demand for direct lending is showing renewed momentum due to wider spreads and a better return outlook.
• 3.Private credit redemption requests are expected to peak in 2Q26 with significant improvements anticipated in 3Q26 and through 1H27.

Table of Contents

• ABF and Real Assets offsetting private credit slowdown
• Private credit institutional demand improved on the margin
• 3Q26 private credit redemption requests will improve
• Software isn't underperforming yet
• Data center deals use leverage mostly raised from public debt markets
• Price objective basis & risk
• Analyst Certification
• Special Disclosures
• Disclosures