As the AI boom accelerates, so does scrutiny on how it’s being financed. Private credit—the $2 trillion market of loans outside traditional banking—is now in the spotlight, and major asset manager Blue Owl is at the center of the story.
With roughly $273 billion in assets under management, Blue Owl has helped finance the AI infrastructure build-out through massive direct lending deals:
· $27 billion partnership with Meta
· $15 billion backing Crusoe Energy
· $5 billion supporting CoreWeave
Rather than issuing public bonds, these companies turned to private credit—funds sourced from pensions and insurers chasing higher yields .
But as the financing grows, so do liquidity concerns.
Cracks Are Emerging
Blue Owl’s $14 billion non-traded fundrecently restricted withdrawals, raising red flags about liquidity in private markets. Meanwhile, $OWL stock has dropped ~55% over the past year
AI Debt Is Not Risk-Free
Borrowers like Oracle are stacking $100 billion+ in debt to fund infrastructure that may take years to generate meaningful cash flow . If AI revenues fall short of expectations, the stress may not stay contained in tech equities—it could ripple across the broader credit market .
The Big Question
Private credit contagion behaves differently than public market stress. If losses mount, who ultimately absorbs them? Pensions? Insurers? Retail investors?
The next financial tremor may not start in crypto or equities.It may start here. 💣
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