Blue Owl’s co-founders, Doug Ostrover and Marc Lipschultz, have disclosed that they are no longer using their shares in the investment management firm as collateral for personal loans, according to regulatory filings submitted on Friday. This development removes a significant concern for the company’s stock, which has been under pressure amid broader challenges in the private credit sector.

The investment firm, which oversees assets exceeding $300 billion, has faced substantial redemption requests from several of its flagship private credit funds. Additionally, it is in the process of winding down an older investment vehicle. These operational difficulties have contributed to a decline in Blue Owl’s share price, which has dropped more than 40% over the past year. Despite some recent recovery, the stock remains below its initial public offering price of $10 per share in 2021.

At the end of last year, Ostrover had pledged 43 million common units of Blue Owl to secure a loan from a financial institution. These units are convertible into publicly traded shares of the company and were valued at approximately $649 million as of late 2025. Lipschultz had similarly pledged 33 million common units, valued at around $493 million. The value of these pledged shares has fallen significantly in line with the company’s stock decline.

Previously, Blue Owl had cautioned that a foreclosure and subsequent sale of these pledged interests could negatively impact its stock price. Investors had expressed concern that margin calls on the loans secured by the co-founders’ shares might trigger forced sales, further pressuring the stock. The company confirmed that, as of now, no shares held by directors or executive officers are subject to any pledges.

This update is viewed as a positive step toward alleviating some investor anxiety related to the firm’s equity structure amid ongoing market challenges in the private credit industry. However, Blue Owl continues to navigate the effects of redemption pressures and the broader market environment affecting its funds and stock performance.