Blue Owl Capital shareholders have filed a lawsuit against the asset manager, alleging it failed to disclose pressure on its asset base caused by redemptions from its business development companies (BDCs).

The pressure it was facing came to light following the termination of the merger of two private credit funds in November last year. The decision followed Blue Owl’s shares slumping after the firm prevented investors in Blue Owl Capital Corporation II (OBDC II), from redeeming until the merger had closed after an initial rush to withdraw funds.

Later that month, Blue Owl announced it was considering reviving the merger of OBDC II, which manages $1.7bn, into the publicly listed $17.1bn Blue Owl Capital Corporation.

This week, a number of US law firms wrote to Blue Owl shareholders informing them that a securities fraud class action lawsuit has been filed against the manager.

Read more: Private credit leads fundraising surge at Blue Owl in Q3

The shareholder lawsuit also claimed that Blue Owl, which manages $295bn (£219.8bn) of assets, did not properly disclose liquidity issues and as a result may have been forced to limit or halt redemptions.

The lawsuit further alleges that the manager made positive public statements about its business that were misleading as a result.

The action has been brought on behalf of investors who bought or held Blue Owl Capital shares between 6 February 2025 and 16 November 2025 and suffered losses.

In response to the lawsuit, a Blue Owl spokesperson said: “The complaint is meritless, and we will seek dismissal at the earliest opportunity.”