Blue Owl Capital (OWL) to Accelerate Capital Returns, Here’s What You Need to Know

OWL -3.42%

Blue Owl Capital Inc. (NYSE:OWL) is one of the Most Promising Stocks to Invest In Before They Take Off. On February 20, Pitchbook reported that Blue Owl Capital Inc. (NYSE:OWL) accelerated its capital return to investors to regain investor confidence after a failed merger attempt.

​Earlier in November 2025, the company had announced its plans to merge one of its early funds, OBDC II, with its main public fund. However, the merger was halted as it might have hurt OBDC II investors, as the stock was trading below its true asset value. Therefore, Blue Owl Capital Inc. (NYSE:OWL) sold loans from OBDC II, including $600 million of assets and bits from two other funds to big institutional buyers, at full book value, generating $1.4 billion in cash.

​Co-president of the company, Craig Packer, stressed they are not halting redemptions and have offered 5% quarterly buybacks for years. He added that the company is accelerating by distributing cash directly to all OBDC II investors at a similar 5% quarterly pace and plans to potentially return half the fund’s capital by year-end.

Source: PEXELS

​New York-based company, Blue Owl Technology Finance Corp. (NYSE:OTF), is a business development company focused on providing direct lending and equity investments to upper middle-market technology and software firms. The company was founded in 2018.

While we acknowledge the potential of OWL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.