Blue Owl co-founder says private credit has itself to blame for crisis

The co-founder of the American private credit giant that has found itself at the centre of concerns about the viability of the sector says his firm has only itself to blame for those fears, and the enormous demand for big returns is still driving institutional investors and wealth managers to his fund.

Doug Ostrover co-founded Blue Owl Capital and is now the co-chief executive of the firm that manages some $US300 billion ($431 billion) in assets. In an interview, the 61-year-old billionaire said the private credit sector “lost control of the narrative” and made a number of mistakes that created fear and doubt about the ability for firms to pay out.