Top Canadian pension funds buy part of Blue Owl's loan portfolio

OMERS and BCI reportedly purchased a portion of a US$1.4 billion loan portfolio from Blue Owl, with CalPERS and Blue Owl insurer Kuvare also reported as buyers; the firm announced the loans sold at about 99.7% of par value.

Ontario Municipal Employees Retirement System (OMERS) and British Columbia Investment Management Corp. (BCI) reportedly bought part of a US$1.4 billion portfolio of loans from asset manager Blue Owl. California Public Employees' Retirement System and Blue Owl's affiliated insurer Kuvare were also reported as buyers. The reported sale followed a recent surge in withdrawal demands from investors in a Blue Owl private credit fund. Blue Owl announced the loans were sold at about 99.7 per cent of par value and said it would impose new limits on investor withdrawals. Key details: - OMERS and BCI reportedly bought a portion of a US$1.4 billion loan portfolio from Blue Owl. - California Public Employees' Retirement System and Blue Owl insurer Kuvare were also reported as buyers. - OMERS and BCI declined to comment to The Logic, according to the report. - Blue Owl announced the loans were sold for about 99.7 per cent of par value. - The sale followed increased withdrawal requests from investors in a Blue Owl private credit fund, and the firm announced new limits on withdrawals. Summary: The reported sale helped avoid a heavy discount on the loans and has prompted attention to liquidity dynamics in private credit. Undetermined at this time.