Blue Owl Leaders Concealed Share Redemption Pressure, Suit Says

Blue Owl Capital Inc.‘s board and top executives misrepresented that the direct credit company faced “no meaningful pressure” from redemptions of shares in a non-publicly-traded fund, an investor alleges.

The leaders also caused Blue Owl to initiate repurchases of its own publicly-traded stock at inflated prices, Edwin Muniz says on behalf of the company. Muniz filed his derivative suit Monday in the US District Court for the Southern District of New York.

The suit comes as investors have increasingly pulled cash from private credit vehicles in recent months. It’s not just Blue Owl that’s grappling with the problem, Bloomberg ...