One Blue Owl fund cuts dividend as another sold half its SpaceX stake before IPO

Fixes story to reflect that the Blue Owl Technology Finance fund maintained its dividend. By Steve Goldstein

Blue Owl tech fund sells half of its stake in SpaceX

Two Blue Owl funds are reducing their dividends.

Two private-credit funds run by Blue Owl Capital reported lower net asset values, with one reducing its dividend.

The $15.3 billion Blue Owl Capital Corp. (OBDC) late Wednesday said it's paying a 31 cents a share dividend for the second quarter, down from 36 cents a share in the first quarter, while the $14.1 billion Blue Owl Technology Finance Corp. (OTF) maintained its payout of a 35 cent per share dividend and a special dividend of 5 cents.

Investors have rushed to the exit from private-credit funds run by Blue Owl and rivals, on concerns over their lending to software companies and other troubled sectors.

Blue Owl Capital Corp.'s net asset value fell to $14.41 per share in the first quarter from $14.81, with the fund now trading at 79 cents to the dollar, while the Blue Owl Technology Finance Corp. NAV fell to $16.49 from $17.33, with the fund trading at 72 cents to the dollar.

In separate press releases, Blue Owl CEO Craig Packer said the credit performance at both funds remained strong though he acknowledged a more challenging earnings environment and the "evolving" AI environment.

The tech fund sold roughly half of its stake in SpaceX in the first quarter, netting $117 million, ahead of a possible IPO later this year.

In the first quarter, Blue Owl bought back stock in both funds, acquiring $30 million of Blue Owl Capital Corp. and $50 million worth of Blue Owl Technology Finance Corp.

Blue Owl (OWL), the fund manager, has seen its stock drop 29% this year.

-Steve Goldstein

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05-07-26 0927ET