Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’

Blue Owl Capital, Inc.Add to myFTGet instant alerts for this topicManage your delivery channels hereRemove from myFTBlue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’Founder of collapsed bridging loan specialist Century Capital is now trying to relaunch businessBlue Owl’s asset-backed lending unit had exposure to the riskiest ‘junior’ slice of Century Capital’s debt, according to documents seen by the FT © Michael Nagle/BloombergBlue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on x (opens in a new window)Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on facebook (opens in a new window)Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on linkedin (opens in a new window)Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on whatsapp (opens in a new window) Save Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on x (opens in a new window)Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on facebook (opens in a new window)Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on linkedin (opens in a new window)Blue Owl tipped UK mortgage lender into insolvency after uncovering ‘irregularities’ on whatsapp (opens in a new window) Save Laith Al-Khalaf and Robert Smith in LondonPublishedMarch 17 2026Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.US private credit firm Blue Owl Capital triggered the recent collapse of a UK mortgage lender after discovering irregularities in its financial reporting and demanding repayment.Blue Owl, which manages more than $300bn, has become a focal point for concerns about the private credit sector and its stock has shed more than 40 per cent so far this year. It tipped bridging loan specialist Century Capital Partners into administration last month after discovering the UK group had dismissed a director because of financial discrepancies, according to people familiar with the matter and documents seen by the FT.The collapse of Century Capital, which owed almost £100mn to creditors, came weeks before that of Market Financial Solutions, a larger bridging lender whose insolvency has sparked allegations of fraud and scrutiny of private credit firms that backed its lending. Paul Munford, the founder of Century Capital, is now trying to relaunch his bridging loan business as Century London, according to people familiar with the matter and a pitchbook seen by the FT. Bridging lenders provide short-term mortgages, often to buyers who have not yet sold their previous property. Century Capital focused on providing loans to wealthy individuals against properties in London and the home counties.Creditors have not accused Century Capital or its management team of fraud, but took action after uncovering apparent issues with its financial reporting and controls, according to two people familiar with the matter.The Century London pitch document explains that Century Capital “dismissed a director of the business due to report [sic] irregularities which had been discovered” towards the end of 2025. It claims that Century Capital “made various corporate governance changes to ensure these breaches cannot be repeated in the future”.Blue Owl’s asset-backed lending unit had exposure to the riskiest “junior” slice of Century Capital’s debt, according to documents seen by the FT and people familiar with the matter.Blue Owl became a lender to Century Capital in 2024 after it acquired Atalaya Capital Management, which had a pre-existing lending relationship with the bridging lender. Bloomberg previously reported that Blue Owl has about £36mn exposure to the company’s debt.“Despite positive conversations with all stakeholders, the junior creditor decided to accelerate the repayment of their secured debt, pushing the company into administration,” Century London’s pitch document stated.Century Capital, Blue Owl and Munford declined to comment.Century Capital’s auditor Sopher + Co resigned a month before the company’s collapse. The accountancy firm attributed its resignation to “the existence of significant outstanding fees” in a statement on the UK’s Companies House register.Century Capital’s administrators at RSM expect to recoup all of the funds to make creditors whole and hope to sell the loan book by March, according to restructuring documents seen by the FT. The documents also stated that, at its peak, Century Capital’s loan book stood at £165mn.Munford, who launched Century Capital in 2011, is preparing to scout potential clients for the new business and will maintain his son, Freddie Munford, as the new business’s head of lending, according to the pitchbook.The launch document adds that Century London will be financed through off-balance-sheet loans from banks, private investors and private credit firms. “Many traditional lenders have seen their propositions weakened by tighter regulation and balance sheet constraints, increasing the complexity of underwriting and increasing their delivery times to fund transactions,” the document said. “This is driving growth amongst private credit providers.”Reuse this content (opens in new window) CommentsJump to comments section Follow the topics in this article Private credit Add to myFT US companies Add to myFT UK companies Add to myFT Insolvency Add to myFT Financial services Add to myFT Comments