Blue Owl Tells Investors Its Loan Sale Had No Hidden Incentives

Blue Owl Capital Inc. defended its recent sale of $1.4 billion of loans from three of its funds, arguing the transaction contained no backstops or hidden incentives, as the asset manager remains a primary target of bets on a private-credit reckoning.

In a private conference call last week with investors, Blue Owl Co-President Craig Packer said the four institutions that struck a deal with the firm did so on an arm’s length basis, conducted their own due diligence, bought the debt on the same terms and received no special guarantees.

Each buyer purchased roughly the same amount at the same ...