Blue Owl Shares Jump 10% on SpaceX Investment Gains
Private credit firm says 10x returns on SpaceX position could offset software loan losses
Quick Look
- Blue Owl shares surged 10% Thursday after executives disclosed roughly 10x returns on their SpaceX investment on the Q1 earnings call.
- The firm has sold about half its position at a $1.25 trillion valuation and continues to hold the remainder.
- Gains from SpaceX, which is heading toward what may be the largest IPO in history, could help offset potential losses from software company defaults amid a sector slump.
AI-generated summary
Shares of Blue Owl, the private credit firm at the center of recent jitters over exposure to software companies, jumped 10% in trading Thursday after executives disclosed sizable gains tied to SpaceX. "We made about 10 times our money on that investment," an executive said on the firm's first-quarter earnings call. Blue Owl has already sold roughly half its position at a $1.25 trillion valuation and continues to hold the remainder, he said. The call was hosted by Marc Lipschultz, co-chief executive officer, and Alan Kirshenbaum, chief financial officer. It wasn't immediately clear which executive spoke specifically to the SpaceX investment. Gains on SpaceX, which is headed toward what may be the largest IPO in history later this year, could offset potential losses elsewhere in Blue Owl's portfolio if software companies default, the executive said. A few minutes later, Blue Owl management noted that while loan-to-value rates have deteriorated amid the software slump, there is still a "tremendous amount of remaining cushion" before losses are seen. This story is developing. Please check back for updates.
