Blue Owl defends software exposure amid private credit redemption pressures
Blue Owl Capital has played down concerns over AI-driven disruption to its software investments, as the alternative asset manager continues to face elevated redemption requests across some private credit funds, according to a report by Bloomberg.
Blue Owl Capital remains confident in its software investments despite concerns over AI-driven disruption, according to a Bloomberg report. James Clarke, the firm's global head of institutional capital, stated that Blue Owl's portfolio is concentrated in differentiated businesses rather than generic software. Private credit redemption requests have been elevated, particularly among software borrowers exposed to AI competition, but these pressures eased during the third quarter.
Investor sentiment, however, remains volatile. To address client concerns, Blue Owl has increased communication about its private credit portfolios. The firm is also pursuing opportunities in data center financing, with a focus on locations outside the US. Currently, Blue Owl operates 130 data center locations worldwide, with around 14% in Asia-Pacific, including facilities in Tokyo and Osaka.
Despite the US-based Project Jupiter data center development with Oracle invoking force majeure due to rising costs, Blue Owl remains committed to the project. The firm is also expanding its relationships with Japanese institutional and wealth management clients, recently appointing Takeo Ikemori from Barclays to lead its Japan business.
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