Blue Owl Founders Pledged $1.9 Billion Stake Before Stock Plunge

Blue Owl Capital Inc.’s record-setting stock plunge was triggered by doubts about the firm’s private credit investments. Now, a different form of leverage is threatening to bring more instability to the shares: its founders’ loans.

Co-Chief Executive Officers Doug Ostrover and Marc Lipschultz have pledged more than half of their Blue Owl stakes in order to secure loans from financial institutions, according to regulatory filings. The value of that collateral has slumped by $260 million since the start of the year as Blue Owl’s shares have lost 16% of their value.