Why Blue Owl's Hopes for AI Datacenters Pose Risk
Datacenter buildouts in the works globally could be affected by troubles at Blue Owl Capital (NYSE: OWL).
The New York-based financial company’s stock made headlines this week for hitting a record low of $8.44 on April 7, down nearly 49% for the past year. And in the first quarter, investors tried to withdraw 41% of their stake in a Blue Owl technology-focused fund and 22% in a $36 billion Blue Owl private credit fund. Both moves represented $5.4 billion in funds investors wanted back.
Financial observers attributed the action to Blue Owl’s exposure to software vendors thought to be vulnerable to threats from AI—a fear that's swept through the rest of the private credit market, which is heavily invested in AI datacenters.
Blue Owl responded by capping the amount that could be taken out of the affected funds at 5%. In a LinkedIn post—with comments turned off—the company claimed its private-credit funds’ performance remains “robust” and blamed “heightened negative sentiment toward direct lending and software in the public discourse” for investors’ requests for money back.
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