NEW YORK / LONDON (IT BOLTWISE) – Blue Owl Capital recently made a decision that has both investors and asset managers sitting up and taking notice. The proposed merger of two private credit funds was first announced, then withdrawn and finally postponed indefinitely. These events highlight the risks and opportunities associated with semi-liquid funds, particularly for investors seeking higher returns.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
Recent developments at Blue Owl Capital have caught the attention of investors and asset managers alike. The company originally planned to merge a $1.7 billion private fund with a $17 billion publicly traded fund. However, that announcement caused Blue Owl shares to fall by more than 10% in two weeks, throwing plans into disarray.
The withdrawal of the merger proposal highlights the challenges associated with semi-liquid funds. While these funds offer higher returns, they also come with increased risks, particularly in terms of liquidity. Morningstar recently warned about the liquidity problems that can arise in private funds, particularly when market conditions are poor and investors try to withdraw their money.
A key aspect that worried investors was the prospect of a 20% loss at current prices, as well as the fact that Blue Owl paused redemptions until early next year. This highlights the need for investors to carefully examine the terms and conditions of such investments and be aware of the limitations associated with semi-liquid funds.
Blue Owl’s decision to postpone the merger may also be related to recent turmoil in credit markets. Some high-profile bankruptcies have shaken confidence in private credit, and expectations of interest rate cuts from the Federal Reserve could further reduce the attractiveness of these investments. Despite these challenges, interest in private markets remains high and capital tied up in private assets is expected to grow significantly by 2030.
Order an Amazon credit card without an annual fee with a credit limit of 2,000 euros!
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ «KI Gadgets»
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “Risks and opportunities of semi-liquid funds for investors”.
The post Risks and opportunities of semi-liquid funds for investors appeared first on Veritas News.
