Blue Owl has decided to call off the merger of its two private-credit funds, triggering significant market volatility. The decision led to a 41% drop in the stock price, raising concerns over liquidity and valuation risks. Investors affected by the halted merger and redemption freeze are now facing expected losses of around 20%. The move signals potential challenges for private credit markets . Blue Owl is also focusing on diversifying revenue streams with strategic partnerships, including collaboration with Meta Platforms to manage a major data center campus.