Blue Owl shares surge after private credit firm cites 10X gains from SpaceX loan
Blue Owl's shares rose 10% after an executive revealed the firm made approximately 10 times its money on an investment tied to SpaceX. The gains stem from a loan that led to an equity opportunity, with half the position already sold at a $1.25 trillion valuation. The strong return could help offset potential losses in Blue Owl's software-related portfolio exposures.
- ▪Blue Owl reported roughly 10X returns on its investment linked to SpaceX during its first-quarter earnings call.
- ▪The firm has sold half of its SpaceX position at a $1.25 trillion valuation and retains the remainder.
- ▪The investment originated as a loan that evolved into an equity opportunity through ongoing financing discussions.
- ▪Executives noted that despite declining loan-to-value ratios in software, the portfolio maintains significant loss cushion.
- ▪SpaceX is expected to launch what could be the largest IPO in history later this year.
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Shares of Blue Owl, the private credit firm at the center of recent jitters over exposure to software companies, jumped 10% in trading Thursday after executives disclosed sizable gains tied to SpaceX. "We made about 10 times our money on that investment," an executive said on the firm's first-quarter earnings call.Blue Owl has already sold roughly half its position at a $1.25 trillion valuation and continues to hold the remainder, he said.The call was hosted by Marc Lipschultz, co-chief executive officer, and Alan Kirshenbaum, chief financial officer.
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