Blue Owl...

Please respond to my DDQ before shitposting on WSO.

FYI

Statement from Blue Owl Capital on OBDC II: "Contrary to what has been reported, we are not halting investor liquidity in OBDC II. In fact, we are accelerating the return of capital. This asset sale will return 30% of OBDC II investors’ capital at book value to shareholders equally on a pro rata basis. Instead of resuming a 5% quarterly tender—under which only tendering investors would receive a partial return of capital—we are distributing an amount six times greater and returning capital to all shareholders within the next 45 days.
 
In the coming quarters, we will continue to pursue this plan to return capital to OBDC II investors."

Their near-term business and portfolio are fine. If they really shit the bed maybe its a low single digit type return. It's hard to blow up on first liens and consider what the implications are for everyone holding unsecured bonds and private equity positions if the first liens in large LBOs are underwater. 

That being said, they built a business that's stupidly exposed to retail capital. Put yourself in the shoes of some random RIA representing an UHNWI client who wants private credit exposure. Why would you ever recommend your client invest in a fund that, if they google it, the first 20 results are all negative press headlines, memes, pundit quotes on your potential insolvency, a tanking stock price, etc... You would just recommend the equivalent Ares or Apollo BDC that doesn't make you look stupid and produce dozens of follow-up questions. 

If they can't fix the brand impairment, which is important to retail capital, it'll just be a slow bleeding death or low growth rather than anything devastating.