Blue Owl BDCs repurchase $90m of shares as private credit market stabilises

Blue Owl Capital repurchased a combined $90m of shares across two of its business development companies (BDCs) during Q2, extending its share buyback programme as the private credit manager looks to support investor value amid continued volatility in the sector, according to a report by Bloomberg.

The firm’s flagship listed private credit vehicle, Blue Owl Capital Corporation (OBDC), repurchased approximately $35m of its shares during the quarter. The fund also reported a 1% decline in net asset value (NAV) to $14.26 per share, reflecting valuation markdowns on a limited number of portfolio companies, partially offset by the impact of the share repurchases.

Craig Packer, chief executive of OBDC, said improving market conditions were creating attractive investment opportunities and positioned the vehicle to deploy capital selectively.

Blue Owl’s technology-focused BDC, Blue Owl Technology Finance Corp, maintained a broadly stable NAV of $16.48 per share while repurchasing approximately $55m of stock during the period.

Portfolio performance remained relatively resilient, although non-accruals at OBDC increased to 2.8% of investments at cost, up from 2.0% in the previous quarter. The vehicle also experienced a slowdown in deployment, with $319m of new investment commitments compared with $747m of loan repayments during the quarter.

Blue Owl has been closely watched throughout 2026 as the $1.8tn private credit market has faced increased scrutiny over portfolio valuations, liquidity and the potential impact of artificial intelligence on software sector borrowers. The firm moved to limit investor withdrawals from certain private credit vehicles earlier this summer following elevated redemption requests.

The latest results suggest Blue Owl is taking a disciplined approach to capital allocation while using share repurchases to enhance shareholder value as conditions in private credit continue to improve.