Alternative investment loss lawyers at Shepherd Smith Edwards and Kantas are investigating brokerage firms like LPL Financial and Osaic for potential misrepresentations regarding Blue Owl Capital’s OBDC II fund. The investigation follows Blue Owl’s decision to restrict investor redemptions, leaving many retail investors unable to access their capital as previously promised.
Shepherd Smith Edwards and Kantas Alternative Investment Loss Lawyers are Investigating LPL Financial, Osaic, and Other Brokerage Firms That Sold This Alternative Investment
If you are a Blue Owl Capital Corporation (NYSE:OBDC) investor, you may have been caught by surprise by the alternative asset firm’s decision to restrict redemptions in its Blue Owl Capital Corporation II (OBDC II) private credit fund. At Shepherd Smith Edwards and Kantas (investorlawyers.com), we are speaking with Blue Owl Capital investors now to help them explore their legal options. Contact us today to request your free case assessment.
What Is Blue Owl Capital and Why Are Investors Worried?
This is a global alternative asset manager that specializes in private credit and private debt financing. In February 2026, it announced it would limit investor redemptions in OBDC II, one of its private credit funds. No longer would OBDC II fund investors be able to withdraw money at quarterly intervals. The alternative asset firm would instead sell assets and use proceeds to repay investors, but without a specific date in mind. Not long after, Blue Owl shares dropped 10%. Meanwhile, it maintains that this move is meant to accelerate returns.
Many Blue Owl Capital investors are high-net-worth investors who also happen to be retail investors. A lot of them are used to being able to easily trade out of investments when they want and need. The OBDC II fund appears to have been touted as a semi-liquid investment, and investors not being able to get their money back on a quarterly basis debunks that claim.
Other recent developments involving Blue Owl Capital:
- A planned OBDC-OBDC II merger is no longer in the works.
- Saba Capital Management and Cox Capital Partners announced they would launch a cash tender offer for shares in a number of Blue Owl non-traded business development companies (non-traded BDCs). OBDC II is one of them. Tender prices are likely to be 20%-35% under the latest NAV or DRIP price.
Did Financial Advisors Make Misrepresentations About Blue Owl Capital OBDC II Fund’s Illiquidity?
Shepherd Smith Edwards and Kantas is investigating the brokerage firms and investment advisers that sold Blue Owl Capital’s OBDC II Fund to investors. These reportedly include LPL Financial, Osaic, Cetera, Beacon Pointe, Wiley Bros.-Aintree Capital, Corient (formerly CI Private Wealth) and others, with some of these firms holding millions of Blue Owl Capital shares. Many of them earned high commissions from marketing and selling Blue Owl Capital Funds and BDCs to investors.
There are growing concerns that brokers and investment advisers may not have fully apprised OBDC II Fund investors about the risks, as it could lose its semi-illiquid status. If so, this could be considered a misrepresentation.
Contact Our Alternative Investment Loss Lawyers Today
Our alternative investment recovery lawyers can explore whether misrepresentations and omissions, unsuitability, overconcentration, negligence, breach of contract, Regulation Best interest violations, breach of fiduciary duty, or a failure to supervise were involved. You may have grounds for pursuing a Blue Owl OBDC Fund II recovery claim against your brokerage firm or investment adviser.
Call (800) 259-9010 or fill out this online form to schedule your consultation with us.