Our Business Development Company Loss Recovery Law Firm Want To Talk To You
If you are an investor who sustained losses in Blue Owl Capital, Shepherd Smith Edwards and Kantas BDC loss recovery lawyers (investorlawyers.com) want to talk to you. Conflicting reports indicate that the recently cancelled merger between Blue Owl Capital Corporation (NYSE:OBDC) and Blue Owl Capital Corporation II may or may not be revived. The possible resuscitation was reported this week and comes after last week’s announcement that the merger was terminated.
Blue Owl Capital Corp. is a speciality finance company that lends to middle-market companies. It reportedly controls $17.6B in assets. Blue Owl Capital Corp. II has $1.8B in assets. It lends funds to private companies that may not be able to secure bank loans. Both private credit funds, which are run as business development companies (BDCs), are managed by Blue Owl Credit Advisors.
According to the two companies, the merger was supposed to generate long-term value for shareholders, but then current market conditions caused them to reconsider. That shareholders made allegations of inadequate or misleading disclosures involving the merger process may have played a part.
It didn’t help that the proposed merger came with the stipulation that until the process was complete, investors would not be able to seek redemption or sell part of their shares back to the company. If the merged fund ended up trading under Blue Owl Capital Corp. II’s stated net asset value (NAV), investors could end up losing money.
According to Reuters, sources say the two private credit funds may still merge if the larger fund’s share price improves, also that other options are being considered. Despite reports to the contrary, Blue Owl maintains that a merger is not back on the table for right now.
What Should You Do If You Are a Blue Owl Capital Investor?
If your broker marketed and sold you a Blue Owl Capital Corp. investment, you may have some legal options to consider. Blue Owl Capital BDCs not only paid financial advisors high commissions, but also they are unsuitable for many investors, especially retail investors. Shepherd Smith Edwards and Kantas BDC loss recovery lawyers can help you assess whether you have grounds for a FINRA arbitration claim against your broker-dealer.
BDC’s, especially non-traded business development companies, are risky investments. Market volatility, vulnerability to higher borrowing costs, illiquidity, and loss of principal can impact a BDC investor’s money.
Our trusted BDC loss recovery lawyers have decades of experience working with investors and recouping damages from their financial advisors. Call (800) 259-9010 or fill out this online contact form today.