Hedge fund Saba offers to buy stakes in Blue Owl funds at steep discount
Financial Times
February 20, 2026
AI-Generated Deep Dive Summary
Hedge fund Saba Capital has announced plans to buy stakes in Blue Owl funds at a significant discount, offering up to 30% off the estimated value of the assets. The move, led by Boaz Weinstein’s investment vehicle, appears aimed at shoring up investor confidence amid challenges faced by Blue Owl, a prominent private credit group. This unprecedented step highlights concerns over the health of alternative asset investments and raises questions about the stability of the broader private credit market.
Blue Owl has been grappling with declining performance and increased scrutiny from investors following reports of potential misvaluation of its assets. The firm has faced pressure to reduce fees and improve transparency, which has led to withdrawals by some high-profile clients. Saba’s offer to purchase stakes at a discount suggests it sees value in Blue Owl’s portfolio but is betting on the long-term recoverability of its investments.
The decision by Saba to step in reflects broader tensions within the private credit sector, where opacity and lack of liquidity have come under increased scrutiny. While some view the move as a vote of confidence in Blue Owl’s underlying assets, others see it as an indication of deeper issues within the industry. The situation underscores the risks associated with alternative investments and the importance of due diligence for investors.
For readers interested in business and finance, this development highlights the delicate balance between investor trust and market stability. It also sheds light on the growing scrutiny of private credit funds and the potential impact of such moves on the broader financial ecosystem. This story is a reminder of the interconnected risks and opportunities in alternative investments, making it a key consideration for anyone tracking trends in global finance.
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Originally published on Financial Times on 2/20/2026