Alternative asset manager Blue Owl is facing scrutiny due to its exposure to Century Capital Partners Ltd, a London-based property lender that recently entered administration. According to a Bloomberg News report, Blue Owl has a 36 million pound ($48 million) exposure to Century Capital. Blue Owl is a U.S. private-credit firm managing $307 billion in assets. It provides investors with alternatives to traditional investments, offering exposure to direct lending and other private credit strategies.
The report indicated that Blue Owl financed the riskiest portion of loans originated by Century, a bridging lender focused on high-end central London properties. Century entered administration with approximately 95 million pounds in total debt, occurring shortly before a similar situation at Market Financial Solutions. Both companies relied on funding from private credit firms and banks to provide short-term property loans to borrowers who often cannot access traditional bank financing, typically at higher interest rates.
Blue Owl has faced increasing investor scrutiny in 2026, with liquidity pressures, withdrawal limitations, and a significant asset sale raising concerns about emerging strains in the private-credit market. The collapse of Market Financial Solutions has exacerbated fears regarding lending standards within the rapidly expanding private finance market. Last month, Blue Owl announced it would sell $1.4 billion of assets across three funds, return a portion of the proceeds to select investors, and reduce debt.
This decision included permanently removing the option for investors in its smallest vehicle, primarily wealthy individuals, to withdraw funds quarterly. Blue Owl shares have declined more than 30% in 2026 and were down more than 6% on Friday. Over the past 12 months, the stock has lost nearly 49% of its value. Century Capital and Blue Owl have not yet responded to requests for comment.