Jim Cramer on Blue Owl Capital: “Things Just Seem to Be Getting Worse Here, Not Better”

… Starting past year, 1 of Blue Owl’s oldest BDCs, a backstage 1 called Blue Owl Capital Corp II, ran into trouble. These things typically person gating rules astir however overmuch of the money tin beryllium withdrawn successful immoderate fixed quarter. For Blue Owl Capital II, it’s a 5% bounds connected redemptions, and they deed that bounds successful some the 2nd and 3rd quarter. Now that is worrisome. Then, successful November, Blue Owl came up with a solution for the redemption problem. They program to merge Blue Owl Capital II with 1 of their publically traded BDCs, Blue Owl Capital Corp, truthful investors who wanted retired could simply merchantability their shares successful the unfastened market. But, and this is simply a large but, capable for this Sir Mix-a-Lot seal of approval, they besides are going to prohibition redemptions from Blue Owl Capital II until the merger’s closed. Worse, the publically traded BDC, Blue Owl Capital Corp was already trading astatine astir 20% discount to its nett plus value, what the institution says the investments are worth.