Saba Capital finds little appetite for tender offer of shares in Blue Owl, Starwood private credit funds

Blue Owl signage outside the Seagram Building at 375 Park Avenue in New York, US, on Thursday, March 12, 2026. Michael Nagle | Bloomberg | Saba Capital Management said that the tender offers for shares in non-traded business development companies managed by Blue Owl Capital and Starwood Capital came in "below initial expectations." In early March, the hedge fund Saba offered liquidity to locked-up investors in Blue Owl Capital Corporation II (OBDC II), a non-traded private-credit fund, at a 35% discount. It launched a similar program at Starwood Real Estate Income Trust (SREIT) at a 24% or 29% discount, depending on the share class. On Monday, Saba said that through the tenders, it was able to acquire about $10 million in aggregate face value across 190 separate trades, "substantially all" from SREIT. The tender for Blue Owl shares reportedly failed to garner more than 1% of what was offered. The disinterest by investors in garnering liquidity at a steep discount comes amid a quarter that saw elevated redemptions across most private-credit, non-traded BDCs. Blue Owl was among the poster children of this phenomenon, halting quarterly redemptions in OBDC II in mid-February, and opting instead to return capital periodically through portfolio asset sales. In early April, investors sought to redeem $5.4 billion from two of its other private-credit funds during the first quarter. Like many of its peers, the fund manager opted to cap these requests at 5%. …