Becker Business Podcast

Episode: Is Private Credit in Trouble: The Blue Owl Capital Story
Host: Scott Becker
Date: February 20, 2026

Episode Overview

In this episode, Scott Becker dives into the pressing question: "Is private credit in trouble?" Using the recent case of Blue Owl Capital as a focal point, he analyzes the private credit industry's stability and discusses the implications of Blue Owl Capital's move to halt investor redemptions from its retail private credit fund. The episode provides an up-to-date look at the challenges facing private credit, with attention to investor sentiment, capital liquidity, and the state of private equity exits.

Key Discussion Points & Insights

Blue Owl Capital’s Redemption Halt (00:30 - 01:00)

• Scott Becker explains the current situation:
  Blue Owl Capital, a leading private credit fund manager, recently announced it will halt redemptions on its retail private credit fund.
  • “They’re no longer letting investors just redeem when they want to redeem. This is, of course, typical for true private equity funds, but it’s been different for retail listed private credit funds. So this is a big shift.” (Scott Becker, 00:43)
• This policy change means investors can access their funds only through structured "exit deals" or at times chosen by the fund manager.

Impact on Fund Valuation & Market Reaction (01:00 - 01:30)

• The decision led to a significant drop in the fund’s value:
  • “This is what I would tell you, down about 8, 9% today.” (Scott Becker, 00:55)
• Investor fears grow around "bank runs" as liquidity dries up and investors can’t easily redeem their shares.

Asset Sales to Manage Redemptions (01:30 - 01:50)

• Blue Owl responded to increased redemption requests by offloading $1.4 billion in direct lending assets.
  • “They sold about $1.4 billion of direct lending assets … at relatively near full value and that allowed them to deal with some of the redemptions they’ve already faced and had broader market impact.” (Scott Becker, 01:37)
• While these asset sales handled current redemptions, the process had a visible impact on broader private credit markets.

Wider Concerns: Private Credit & Equity Exits (01:50 - 02:15)

• Becker draws a parallel between private credit and private equity, noting that both rely on successful redemptions and exit transactions.
  • “It’s harder and harder to see redemptions at the right price—meaning exit transactions. Harder and harder to see companies doing exit transactions.”
• Stagnation in the market: “The latest system I saw was about 31,000 private equity-funded companies are still waiting to do an exit deal of some sort and having a hard time doing so.” (Scott Becker, 02:06)

Notable Quotes & Memorable Moments

• “They’re no longer letting investors just redeem when they want to redeem. This is, of course, typical for true private equity funds, but it’s been different for retail listed private credit funds. So this is a big shift.”
  — Scott Becker, 00:43
• “Boo. [Blue Owl] did sell a great deal of assets to allow so as to handle some redemptions … about $1.4 billion of direct lending assets and those are relatively near full value and that allowed them to deal with some of the redemptions they’ve already faced and had broader market impact.”
  — Scott Becker, 01:32
• “The latest system I saw was about 31,000 private equity-funded companies are still waiting to do an exit deal of some sort and having a hard time doing so.”
  — Scott Becker, 02:06

Important Timestamps

• 00:30 — Introduction to the Blue Owl Capital story
• 00:43 — Blue Owl Capital’s halt on fund redemptions explained
• 00:55 — Immediate drop in fund valuation (down 8–9%)
• 01:32 — Discussion on asset sales to meet redemption requests
• 02:06 — Marketwide challenges for private equity-funded exits

Tone & Style

Scott Becker maintains an analytical, slightly cautious tone, focusing on facts while underscoring the broader concerns in private markets. He moves quickly over statistics and market reactions, using accessible language to demystify the technical aspects of private credit for listeners.

Conclusion

Scott Becker’s episode provides a timely examination of the pressures mounting in private credit, using Blue Owl Capital's redemption freeze as a lens for wider industry trends. He highlights growing illiquidity, the difficulties inherent in today’s exit environment, and the tension felt by both investors and fund managers.

Listeners gain a solid understanding of the latest developments in private credit, the specific challenges facing funds like Blue Owl Capital, and the ripple effects felt across private markets.