Owners of Blue Owl-managed business development company (BDC) vehicles Blue Owl Capital Corporation (OBDC), Blue Owl Capital Corp II, and Blue Owl Credit Income Corp. might have seen the name "Kroll, LLC" as an "independent" agency Blue Owl engages for its valuation and/or fairness opinions. But on further review, a Kroll-associated borrower, Deerfield Dakota Holdings, also happens to lend money to Blue Owl investments.
If you haven't identified the circular conflict of interest, here it is: Kroll's Deerfield Dakota Holdings lends to Blue Owl, which in turn engages Kroll for its valuation/fairness opinion services. This creates an incentive for Kroll to show Blue Owl as performing positively lest Kroll risk losing its loans. And thus, the open question becomes what degree of fairness-opinion can Kroll truly bestow on Blue Owl's valuation, provided that Kroll seemingly has an incentive to ensure Blue Owl's financial success?
Blue Owl Capital Corp II, meanwhile, has halted quarterly redemptions, liquidating $1.4 billion of direct lending investments. A graph from Bloomberg showed Blue Owl declined nearly 30% through February 2026, with further losses as the calendar turned to March.
Fourier Asset Management's Orlando Gemes said, "the red flags we are seeing in private credit today are strikingly familiar to those of 2007." 2007's liquidity crisis ultimately resulted in a stock market crash and global recession that lasted several years.
Saba Capital Management founder Boaz Weinstein recently told CNBC, "there are cracks, there are problems, there are frauds, there are companies that are going bad without being a fraud."
The present liquidity and redemption problem isn't solely tied to Blue Owl—alternative investment manager Blackstone Inc. has lost nearly a third of its value since the beginning of 2026—but what make Blue Owl unique is that its valuation/fairness services provider, Kroll, also holds a financial interest in the wellbeing of Blue Owl's BDCs, through Deerfield Dakota Holdings' loans.
The Law Offices of Jonathan W. Evans & Associates is investigating whether financial advisory firms and broker-dealers such as Beacon Pointe, Osaic, and LPL Financial failed to conduct adequate reasonable basis due diligence before recommending Blue Owl BDC investments.
If you invested in Blue Owl Capital Corp or another Blue Owl BDC, resulting in losses or other damages, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.