Key Takeaways
- • Blue Owl Capital's global head of institutional capital, James Clarke, acknowledged that AI will disrupt the software industry but said the firm's software portfolio is concentrated in differentiated businesses, according to Bloomberg.
- • Elevated redemption requests continue across some Blue Owl private credit funds, with withdrawal pressure linked to investor concerns about loan quality among software borrowers exposed to AI competition.
- • Redemption pressures eased during the third quarter, but Clarke reportedly described investor sentiment as still volatile, and the firm has increased client communication on its private credit portfolios.
- • Blue Owl is pursuing data centre financing outside the US, with 130 data centre locations globally, roughly 14% in Asia-Pacific including Tokyo and Osaka.
- • Blue Owl remains committed to its Project Jupiter data centre development with Oracle despite Oracle invoking force majeure last month over rising costs, and is expanding its Japan business under newly appointed co-lead Takeo Ikemori, formerly of Barclays.
Summary
Blue Owl Capital has played down concerns that artificial intelligence will disrupt its software investments, even as the alternative asset manager continues to face elevated redemption requests across some of its private credit funds, according to a report by Bloomberg. James Clarke, the firm's global head of institutional capital, acknowledged that AI would disrupt the software industry but maintained that Blue Owl's portfolio is concentrated in differentiated businesses.
Investor concern over private credit loan quality, particularly among software borrowers exposed to AI competition, has contributed to withdrawal requests from the asset class. Clarke reportedly said redemption pressures eased during the third quarter, though investor sentiment remains volatile. Blue Owl has responded by increasing communication with clients about its private credit portfolios.
On infrastructure, the firm is targeting data centre financing opportunities, particularly outside the United States. Blue Owl currently has 130 data centre locations globally, with approximately 14% in Asia-Pacific, including facilities in Tokyo and Osaka. In the US, the firm remains committed to its Project Jupiter data centre development with Oracle, despite Oracle invoking force majeure last month in response to rising costs.
Blue Owl is also reportedly expanding its Japanese institutional and wealth management relationships. The firm recently appointed former Barclays executive Takeo Ikemori to jointly lead its Japan business.
Investor concern over private credit loan quality, particularly among software borrowers exposed to AI competition, has contributed to withdrawal requests from the asset class. Clarke reportedly said redemption pressures eased during the third quarter, though investor sentiment remains volatile. Blue Owl has responded by increasing communication with clients about its private credit portfolios.
On infrastructure, the firm is targeting data centre financing opportunities, particularly outside the United States. Blue Owl currently has 130 data centre locations globally, with approximately 14% in Asia-Pacific, including facilities in Tokyo and Osaka. In the US, the firm remains committed to its Project Jupiter data centre development with Oracle, despite Oracle invoking force majeure last month in response to rising costs.
Blue Owl is also reportedly expanding its Japanese institutional and wealth management relationships. The firm recently appointed former Barclays executive Takeo Ikemori to jointly lead its Japan business.
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