Blue Owl to Buy Stakes From Fund Investors Seeking Liquidity

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Blue Owl Capital Inc. is entering the market for secondhand stakes in private-asset funds, targeting investors who want to cash out. The firm plans to buy portfolio interests from fund investors, a move that aligns with a surge in secondary transactions.

The alternative asset manager has experience investing in continuation vehicles through its strategic equity arm and is now expanding to purchase stakes in private equity and credit portfolios. These transactions are expected to be led by limited partners seeking to rebalance their holdings or raise cash.

Blue Owl is hiring an executive to build out the new secondaries strategy, underscoring its commitment to the sector. The strategy is part of a broader effort to attract more capital from wealthy individuals, who make up about 40% of its investor base.

Why Did This Move Happen?

The secondaries market hit a record $226 billion in 2025, driven by a 34% increase in portfolio sales by fund investors to $120 billion. Evergreen vehicles that allow for continuous fundraising have fueled the demand for such deals.

Blue Owl is well positioned to expand in this space, given its existing visibility into private equity portfolios through its direct lending arm. This access will help it evaluate potential investments more effectively.

The firm's new hire will report to Chris Crampton, a Goldman Sachs veteran who joined Blue Owl in 2023 to spearhead continuation fund investments. Crampton's team has already completed at least three such deals, including continuation funds for Taco Bell franchisee Tacala and the parent company of World 50.

How Did Markets React?

The move into secondaries comes as Blue Owl faces a class action lawsuit from investors alleging securities fraud. The lawsuit claims the firm concealed liquidity issues and misleadingly portrayed its business outlook during a specific period.

Despite this, the firm remains bullish about its secondaries strategy. Blue Owl is raising more capital from wealthy individuals, who view secondaries as a lower-risk, diversified investment option.

The firm's new focus also aligns with broader trends in private equity, where value creation is increasingly tied to leadership and operational growth. As deal flow slows and hold periods lengthen, firms are looking for ways to scale existing investments.

What Are Analysts Watching Next?

Analysts are watching how Blue Owl executes its secondaries strategy and whether it can maintain its performance amid a challenging market. The firm has visibility into private equity portfolios, which should aid its decision-making process.

The secondaries market is expected to remain a key area of growth, particularly for firms with strong relationships with limited partners. Blue Owl's expansion into this space could position it to benefit from ongoing demand for liquidity.

As the market evolves, firms like Blue Owl may increasingly rely on leadership and operational expertise to drive returns. This shift highlights the importance of talent and strategic execution in the private equity space.