Blue Owl Capital Inc. co-chief executive officer Marc Lipschultz says concerns about the private credit industry are overblown and wealth flows are accelerating. He says investors are seeing "through the noise" and "mass hysteria." He also says the firm's portfolio companies are very healthy and technology is making some more productive. He speaks on "Bloomberg Open Interest."
--------
More on Bloomberg Television and Markets
Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9
Visit http://www.b...
3:33... there is starting to creep into the market some concern with Meta, of course as one of your partners, but the large hyperscaler spending and the ability of financing and debt that they're taking on — is there any reason to be concerned?
5:13Are they going to be slowing hiring or even reducing jobs as they replace some of that productivity with AI?
6:30Has it been harder to reach those people just in the volatility of headlines that have been coming out?
Blue Owl reported results this week after joining forces with Meta on AI data centers. The firm reported a 21% year-over-year jump in AUM. Joining us is the co-CEO. Wonderful to have you on this morning. Look, I know whenever anyone asks about the equity price, you very astutely are like, we don't concentrate on the short term. But there was a decline after earnings, so we have to address it. Why the disconnect between the two?
Yeah. Look, we had a great quarter. We had continued extraordinary growth, 20%-plus growth on the top line. I think there is, as you noted, this disconnect, which is having acquired very successfully and very fortunately businesses like our digital infrastructure business, IPI, you issue shares, but then you don't have a full year of their results. So it's actually just math. As you look at our run-rate growth per share, it is continuing to accelerate and continues to be incredibly robust. So there's a little bit of math, but it really is just simple math. Business is really thriving.
And from Z and Henry and John. You were talking with him and he was saying something about easing excess returns in private capital and there's a market saturation. We see very tight spreads and generally lower yields are headed lower. What do you think about that idea?
So I would decompose the question of kind of yields and returns into three components, right? One, of course, is credit quality first and foremost. At the end of the day, the most important thing is that you're making good loans and getting paid back.
So we want a very healthy ecosystem, and we have a very healthy ecosystem. We really do. And we can certainly come back to that. So credit quality is excellent in our book, and that doesn't mean no defaults. Everyone's going to have defaults now and then. We all — multitrillion-dollar industry, that's okay. You just can't have many, and you have to get good recoveries, and that's exactly what we do at Blue Owl. By the way, so do our peers and the banks. So the system is in a strong place. Then of course there's base rates, and of course the direction of base rate travel. Everyone obviously sees it, having eased from the peak, but again, every time consensus builds to, oh, it's obvious, you look at the Fed commentary, now it's not quite so obvious how fast rates are going to go down. And last is spread. And spreads are on the lower side of where we operate, but over a 10-year window, they ebb and they flow. And remember, we're building portfolios that have hundreds of names in them. Some are from a couple of years ago, some are current. Most importantly, our overall spread, the premium we offer to the traditional marketplace, is actually stunningly steady. We don't live in a vacuum. So spreads in the whole world are tight. Of course ours are tighter. Equity markets are at all-time highs. We don't live in isolation, and in that world spreads are a little bit tighter, but in total we continue to deliver really outstanding investment results, and that's why we have record fundraising results.
9 more exchanges in this transcript
Sign in free to read the rest of this interview. No card required.
Lipschultz, M. (2025, October 31). Blue Owl's Lipschultz Says Private Credit Ecosystem Is Very Healthy [Interview transcript]. Bloomberg Television. CEOInterviews.AI. https://ceointerviews.ai/interview/3023129/
MLA
Marc Lipschultz. "Blue Owl's Lipschultz Says Private Credit Ecosystem Is Very Healthy." Bloomberg Television, 31 Oct. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/3023129/.
BibTeX
@misc{lipschultz2025_3023129,
author = {Marc Lipschultz},
title = {Blue Owl's Lipschultz Says Private Credit Ecosystem Is Very Healthy},
howpublished = {Interview transcript, Bloomberg Television. CEOInterviews.AI},
year = {2025},
month = {oct},
url = {https://ceointerviews.ai/interview/3023129/},
note = {Speaker-attributed transcript with timestamps}
}
