Blue Owl Capital shares slide as investors digest debt fund changes and lending concerns

Blue Owl Capital Inc. OWL announced today, February 20, 2026, that it will sell $1.4 billion of assets across three of its funds and return the proceeds to investors. The firm also confirmed it has permanently halted redemptions at Blue Owl Capital Corp II, a decision that has intensified concerns regarding liquidity within the private-credit sector in the US US. The announcement triggered a multi-session decline in the company’s share price as the market reacted to the scale of the asset disposal and the suspension of investor withdrawals.

Shares of the asset manager fell further in pre-market trading following the disclosure, adding to a period of significant volatility. Blue Owl shares have declined by more than 36% in 2025, and the latest move has spooked investors, contributing to a broader selloff that has weighed on the stock prices of major peers. The development has raised broader questions about valuation practices and the liquidity of private-credit holdings during periods of market stress.