Blue Owl Calls Off OBDC and OBDC II Merger Amid Market Volatility

Despite strong performance metrics, the firms opt to remain independent and revisit strategic options later.

November 20, 2025

Blue Owl Ends Merger Plans, Focuses on Independent Growth

Blue Owl has stepped back from merging its two specialty finance arms—Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation II (OBDC II). While the merger was expected to unlock long-term value, shifting market conditions made now the wrong time to move forward. Instead, the teams are staying focused on what matters most: running strong portfolios and keeping investor interests front and center.

The decision, announced November 19, comes with a clear message—both companies are confident in where they stand today and what they can deliver independently. Management led the recommendation, and both Boards agreed: in this market, staying nimble is key.

What's Next for OBDC II

Looking ahead, OBDC II plans to bring back its tender program in the first quarter of 2026, subject to Board approval. The fund has a strong track record:

• Since 2017, nearly 80% in cumulative net returns


• 9.3% annualized net return


• Every tender to date has been fully satisfied

Credit quality remains a priority. The fund has limited losses to just 23 basis points, and less than 2% of the portfolio’s fair value is currently on non-accrual.

OBDC Keeps Share Repurchase Program in Place

OBDC will continue executing its $200 million share repurchase plan. That program, announced alongside the initial merger proposal, remains active and unchanged.

As of September 30:

• OBDC held $17.1 billion in investments across 238 portfolio companies


• OBDC II managed $1.7 billion across 190 companies

Both firms operate under the Investment Company Act and are managed by Blue Owl Credit Advisors, part of Blue Owl’s broader credit platform.

Staying Open to Future Options

No timelines have been set for revisiting the merger, but leadership hasn’t ruled it out. They’re watching the markets and keeping options open. Until then, both companies are moving forward with clear direction and stable footing.