Brown University Scales Back Investment in Blue Owl Private Credit Fund by More than Half

Brown University's Endowment Scales Back Investment in Blue Owl Capital

May 1 - Brown University's $8 billion endowment has significantly reduced its stake in a publicly traded private credit fund run by alternative asset manager Blue Owl Capital. According to a regulatory filing submitted on Friday, the Ivy League institution cut its stake in Blue Owl Capital Corp, the firm's biggest publicly traded private credit fund, by roughly 53%. The university's stake in the fund has been reduced to 1.5 million shares at the end of March 31, compared to 3.2 million shares at the end of 2025.

This reduction marks a notable shift in the university's investment strategy, particularly given its retention of its entire stake of roughly 2.6 million shares in the management company. The move is consistent with trends observed in the private credit industry, where publicly traded business development companies (BDCs) like Blue Owl Capital Corp have seen their valuations come under scrutiny.

| Comparison of Brown University's Stake in Blue Owl Capital Corp | | --- | --- | | Initial Stake (End of 2025) | 3.2 million shares | | Current Stake (End of March 31) | 1.5 million shares | | Percentage Reduction | 53% |

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The private credit industry has faced intense scrutiny in recent months, with negative headlines drawing attention to mounting stress in the sector. Institutional investors have continued to show a strong appetite for private credit, but retail investors and wealthy individuals have pulled away from the multi-trillion-dollar asset class. Insurance giant AIG has also pared back its private credit activity in response to current market conditions.

Brown's portfolio spans asset classes such as public equity, real assets, and private equity, and the endowment logged an investment return of 11.9% in fiscal 2025. The university's 13-F filing, which details investment holdings at the end of the previous quarter, provides valuable insights into investment trends and strategies.