Blue Owl Capital is quietly evaluating whether to revive its previously cancelled plan to merge OBDC (public BDC) with Blue Owl Capital Corporation II (private BDC) — but only if OBDC’s share price rises back toward NAV, according to people familiar with the matter.
The merger was abandoned last week after the plan — which included freezing redemptions in the smaller fund and converting investors into the larger fund at its share price — triggered strong investor backlash.
Despite the cancellation, Blue Owl has reiterated that the merger still has strong strategic merit, offering cost efficiencies and a clear liquidity path for shareholders.
Blue Owl publicly denies that the revival is underway, stating the cancellation is “not a postponement”. Still, the firm continues to examine all options.
Key Highlights
- Merger revival depends on OBDC not trading below its NAV of $14.89.
- OBDC’s 2025 trading range: high of $15.73 → low of $11.65.
- Analysts say the merger would be the most accretive outcome given the strong portfolio overlap.
- OBDC II holds 190 investments worth $1.7B, while OBDC holds 238 investments worth $17.1B.
- An IPO for OBDC II is seen as unlikely; merger remains the preferred path.
- The private credit boom continues as non-bank lenders expand their market share amid tighter banking regulations.
Market Signal
If OBDC moves closer to book value, the merger could realistically resurface — a closely watched test for retail-focused private credit liquidity and long-term investor confidence.