Image Credit: vecteezy.com
By Stan Szymanski
Yesterday, Boaz Weinstein of Saba Capital Management, said the weight of the impact of Blue Owl Capital Inc.’s (OWL) private credit funds illiquidity may be an early indicator of vulnerability and weakness in the significant $1.8T market:
…’“All you need is the snowball to start going down the hill and it started. Blue Owl is right in the middle of that,” Weinstein said at an industry conference in Miami Beach, Florida, Bloomberg reported. “I think we are in the super-early innings of the wheels coming off the car.” (Seeking Alpha 2/24/26)
Weinsteins’ comments come after Blue Owl permanently blocked withdrawals from a $1.6 Billion private credit vehicle and sold $1.4B in loans to pension funds. Blue Owl also sold loans to its own insurance company, feeding new worries about risks concerning liquidity in this part of the ‘alternatives’ market.
People might tend to think that ‘Private Equity’ is just for the wealthy that frequent the Hamptons on vacation. This type of ‘alternative’ investment has recently become much more mainstream than most people realize.
Just last year, President Trump signed an executive order opening the door for providers of 401(k) (and IRA) retirement plans to offer private equity investments to this large and lucrative market:
…’Private asset managers have been tantalized for years about the $29 trillion in Americans’ retirement accounts. Donald Trump just made it easier for them to get a slice.’…(Forbes 8/8/25)
In ‘Private Equity Firms Celebrate Trump’s Executive Order Giving Them The Keys To Retirement’ Forbes staff writer Hank Tucker points out that…
That’s our buddy The Donald hard at work.
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