Blue Owl Under Fire For Decision To Start Private Credit Firesale

Late last night we explained why even as the ongoing rush to gate investors of private credit firms (which started with Blackrock and has since moved to Morgan Stanley and Cliffwater despite desperate prior attempts to halt the avalanche by Blue Owl and especially Blackstone which partially funded some of the redemption requests with the company employees' own money) has accelerated dramatically in the past few days, the firesale - in the sense memorialized by the movie Margin Call - actually started a month ago when Blue Owl became the first firm to dump $1.4 billion in private loans.

This is how we described that defining moment for the private credit industry.