Blue Owl Capital Cuts Dividend as Rates Fall, Investors Trim Stakes

Blue Owl Capital reduced its quarterly base dividend from $0.37 to $0.31, citing a need to match the portfolio’s earnings power amid a declining interest‑rate environment. The average loan rate on its portfolio fell from 11.1% at the end of 2024 to 10% in the first quarter of 2025, and net asset value per share dropped to $14.41 from $14.81 a year earlier. Non‑accrual loans remained low at about 1% of the portfolio, indicating credit quality was not the primary issue.

Institutional holdings also shifted. The Regents of the University of California sold 98.9% of its Blue Owl stake, ending the quarter with 66,347 shares worth roughly $606,000. Conversely, Royal Bank of Canada increased its position by 50%, holding about 398,000 shares valued near $8 million. Other investors such as Russell Investments and State Street Corp reported modest adjustments. The dividend cut and investor moves highlight broader headwinds facing business development companies.