Brown Endowment Slashes Blue Owl Stake by 53%

Brown University's endowment, valued at $8 billion, has significantly reduced its investment in Blue Owl Capital's publicly traded private credit fund. As of March 31, 2026, the endowment's stake in Blue Owl Capital Corp. was slashed by approximately 53%, decreasing to 1.5 million shares from 3.2 million at the close of 2025. This action was detailed in a recent 13-F filing.

Despite the substantial divestment from the specific fund, Brown University retained its complete ownership of roughly 2.6 million shares in Blue Owl's management company. This strategic adjustment occurs amidst a challenging environment for publicly traded Business Development Companies (BDCs), which are trading at considerable discounts. Investor wariness regarding valuations and increasing stress within the private credit sector are key contributing factors.

The broader private credit industry, a multi-trillion-dollar asset class, is experiencing a divergence in investor interest. While institutional investors maintain a strong appetite, retail and high-net-worth individuals are withdrawing funds. This trend is exacerbated by a recent surge of negative publicity surrounding the industry, leading to intense scrutiny. In line with this cautious market sentiment, insurance giant AIG also announced on May 1, 2026, that it has reduced its private credit operations.