This news is weeks late because I just received a copy of the letter from my broker today.

On November 19, 2025, Blue Owl Capital announced that it had ended the planned merger between its publicly traded business development company, Blue Owl Capital Corporation (NYSE: OBDC), and the non-traded Blue Owl Capital Corporation II (OBDC II). In an investor communication, the company cited current market conditions and stated that both boards acted on management’s recommendation and in what they viewed as the best interests of shareholders.

Following the merger announcement, OBDC II investors voiced concerns about the proposal because it would have paused the fund’s quarterly tender offer program until closing. At the same time, OBDC stock was trading at a meaningful discount to net asset value, which raised questions about the value OBDC II shareholders would receive in an exchange. Reports indicated that redemption requests increased as investors reassessed their liquidity options, although OBDC II does not trade publicly and its share price is not quoted in the market.

Blue Owl decided not to proceed with the transaction and indicated it may evaluate other strategic options in the future. OBDC II expects to reinstate its quarterly tender offers beginning in the first quarter of 2026, returning to the liquidity framework its investors are familiar with. OBDC’s previously announced 200 million dollar share repurchase program remains in effect.

The company noted that both funds continue to report solid portfolio performance and maintain well-covered distributions. The episode highlighted the sensitivity of non-traded and tender-offer fund investors to mergers that involve significant public market discounts, and it showed the extent to which investor feedback can shape outcomes.