Blue Owl Capital (OWL) halts fund redemptions amid $1.4B asset sale

Blue Owl Capital (OWL) announced plans to sell $1.4 billion in lending investments to provide liquidity, effectively halting customer redemptions in a private credit fund. The move triggered a sector-wide sell-off and renewed fears regarding liquidity risks in the U.S. credit market. Shares of Blue Owl plummeted nearly 12% this week, while the VanEck Alternative Asset Manager ETF (GPZ) fell over 3%. Analysts including Mohamed El-Erian and Jeff Gundlach cited concerns over valuation hits, with El-Erian noting on Feb. 19, 2026, that while systemic risk is lower than the 2007 subprime crisis, the event signals potential stress in private asset valuations.