Blue Owl Capital is considering a renewed attempt to merge its two private credit vehicles, OBDC and Blue Owl Capital Corporation II, if the share price of the larger fund strengthens, according to people familiar with the discussions cited by Reuters.

The firm abandoned the merger on 19 November after investors pushed back against a plan that would have frozen withdrawals at OBDC II and exchanged investor holdings at OBDC’s market price.

Any revival would depend on OBDC trading closer to its net asset value. The stock has traded between $11.65 and $15.73 this year and closed at $12.34 on Friday, below its third-quarter NAV of $14.89 per share. A discount implied a potential loss of about 20% for OBDC II investors under the original terms.

Blue Owl co-president Craig Packer denied that the firm is actively reconsidering the merger, saying: “This was a cancellation not a postponement.” Yet sources said the firm continues to see strategic value in a combination, citing lower costs and improved liquidity for investors.

Blue Owl must provide OBDC II with a liquidity event by April 2026 or April 2027, increasing pressure to evaluate options. An IPO is viewed as unlikely. Executives have said they are exploring all alternatives, including listing the fund or selling assets.

The consideration comes as the private credit industry experiences rapid growth and heightened scrutiny following several recent bankruptcies. Retail-focused structures such as OBDC II are being monitored closely because their liquidity solutions may influence future demand.

OBDC II holds stakes in 190 companies worth $1.7bn. OBDC holds investments across 238 companies valued at $17.1bn.

Similar transactions have taken place across the industry. Carlyle merged its Secured Lending and Secured Lending III funds last year, while Goldman Sachs combined its publicly traded BDC with Middle Market Lending Corp in 2019.

Blue Owl said last week that it still believes in the merits of merging the funds but is not pursuing the deal at this time due to market conditions.

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