Kuvare, CalPERS, OMERS and BCI bought Blue Owl loans: sources

Kuvare, CalPERS, OMERS and BCI bought Blue Owl loans: sources

Blue Owl Sells $1.4 Billion in Credit Fund Assets to Pension, Insurance Investors Amid Market Pressures

Private investment firm Blue Owl Capital announced on February 18, 2026, that it has sold $1.4 billion in assets from three of its credit funds to leading North American public pension and insurance investors. The transaction, which includes $600 million from Blue Owl Capital Corp II, $400 million from Blue Owl Technology Income Corp, and $400 million from Blue Owl Capital Corp, aims to return capital to investors and reduce debt amid ongoing market challenges.

The sale comes as Blue Owl faces pressure from declining software stock values and heightened scrutiny over asset valuations. The firm is receiving 99.7% of the loans' original value, aligning with its internal marking practices. This move follows a broader industry trend of private credit firms reassessing exposure to software-related investments, which have lost significant value amid AI-driven market shifts.

While the buyers were not explicitly named, sources describe them as "leading North American public pension and insurance investors" purchasing equal stakes. This aligns with Blue Owl's prior strategic focus on the insurance sector, including its 2024 acquisition of Kuvare Asset Management for $750 million. The Kuvare partnership had expanded Blue Owl's insurance solutions division, positioning the firm to manage up to $20 billion in assets under management.

The proceeds from the asset sale will partially fund investor payouts for Blue Owl Capital Corp II and reduce debt across all three funds. The transaction allows Blue Owl Capital Corp II to return up to 30% of its net asset value to investors, equivalent to $2.35 per share. Analysts noted the sale validates Blue Owl's valuations and reflects a prudent approach to addressing liquidity concerns in its retail funds.

Blue Owl's stock closed at $12.31 on February 18, up 1.9% during regular trading but down 1.6% in after-hours trading following the announcement. The firm's co-CEOs emphasized the need to adapt to investor demands for transparency and liquidity, particularly in sectors like software, which comprise 13% of the sold assets.

This transaction underscores the evolving dynamics in private credit markets as firms navigate valuation challenges and shifting investor priorities.