Blue Owl Capital Corporation: A Questionable Discount To NAV
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David Desjardins2.54K FollowersFollow5ShareSavePlay(14min)CommentsSummaryWith a $16.5 billion investment portfolio as of December 2025, Blue Owl Capital Corporation is the second-largest publicly listed business development company, only behind Ares Capital at $29.5 billion.First lien senior secured loans account for ~73% of OBDC's investment portfolio, while ~11% of the underlying constituents operate in the software industry.Based on OBDC's current share price of $11.45, it is on paper trading at a discount of ~23% relative to the latest NAV estimate of $14.81.Liquidity conditions in private credit markets have deteriorated quite significantly since the end of December 2025, with redemption requests now becoming widespread across the ecosystem.In my view, we are still in the early innings of a much larger credit downcycle with private credit at its epicentre. At least for me, it is still too early to start accumulating OBDC's share, as I believe we are going much lower from here. Henrik Sorensen/DigitalVision via Getty Images What is Going on With OBDC? After initiating coverage on the alternative asset manager Blue Owl Capital (OWL) in December 2025 and updating my investment thesis last month, I now turn myThis article was written byDavid Desjardins2.54K FollowersFollowFor almost a decade, I held research analyst positions in various investment firms, mostly in Toronto. I started in sell-side research with a Canadian bank, then moved to a hedge fund, followed by a family office and then finished my career in wealth management. I was 20 on my first day on Bay Street. I will forever remember. I had worked so hard to get there, from a small French-speaking town in Québec. Getting my CFA and CAIA designations by 25 was another important milestone. I was a young man with a dream, wanting to make it big. However, life was about to teach me a painful lesson. Before conquering the world, a man must first conquer himself by going into the depths of his own abyss. Only then may he shed his naivety and become a man truly able to love.For the last four years, I have been living in a yurt in the boreal forest, approximately 100 kilometres away from the closest paved road or grocery store. In a forest full of birds, just beside a lake full of fish. For water, I go to the creek. For heat, there is plenty of white birch and quaking aspen around. If I need anything in town, I have plenty of money for my needs. I am now 30, in love, and as free as the birds in the skies, so what else can I ask for? In all humility, and in all gratitude, I say thank you to this grandiose symphony we call life.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.