Blue Owl earnings impact from latest redemptions ‘modest,’ says Evercore ISI

Evercore ISI notes that two of Blue Owl Capital’s (OWL) private credit funds are capping redemptions at 5% after receiving withdrawal requests totaling 21.9% and 40.7%. While the headline redemption figures are “undeniably large,” the earnings impact is “materially more modest,” says the analyst, who notes that OCIC and OTIC together account for 12.5% of Blue Owl’s fee-paying assets under management and the 5% quarterly tender cap translates to less than 2.5% of annualized outflows. The firm has an Outperform rating and $10 price target on Blue Owl Capital shares, which are down 11c, or about 1%, to $8.60 in late morning trading.