Squawk on the Street Blue Owl Exclusive, Nvidia Earnings Countdown, Target's Revenue Miss 11/19/25
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Nov 19, 2025 
Craig Packer, Co-president of Blue Owl and CEO of its BDCs, discusses the company's abrupt decision to cancel the merger of its private-credit funds due to investor concerns. He addresses the pressing issues of credit quality and liquidity, asserting the stability of their direct-lending standards. The conversation also touches on Nvidia's upcoming earnings report amidst AI market speculation and Target's disappointing revenue, with insights on retail sector performance from Lowe's and TJX.
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Blue Owl Calls Off Controversial Merger
- Blue Owl canceled its planned merger after boards concluded reputational criticism and recent stock slump outweighed the benefits.
- The non-traded fund will resume quarterly redemptions in Q1 and liquidity remains capped to protect remaining investors.
BDC Portfolios Show Strong Credit Metrics
- Craig Packer said both BDC portfolios are performing well with low historical loss rates and strong earnings.
- He emphasized 98% overlap between the private and public fund holdings, arguing the merger made logical sense pre-rumor selloff.
Lending Focus: First‑Lien, Low LTV, Recession‑Resistant
- Blue Owl targets first‑lien loans to PE‑backed firms in recession‑resistant sectors with average EBITDA of $240m and LTV ~40%.
- Packer argued floating‑rate structures benefit current earnings amid higher rates while credit remains strong.