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Stock impact report

In the $3 trillion private credit market, the ‘shadow default' rate is increasing as more money chases lower-quality deals [Fortune]

Blue Owl Capital Inc. Class A (OWL) 
Company Research Source: Fortune
declined, according to an analysis by Lincoln International, an investment bank advisory service that monitors that market. The new data sheds some light on a $3 trillion market that has recently been unnerved by Blue Owl Capital's decision to ban retail investors from cashing out of one of its private debt funds, in favor of returning their money through episodic payments as it liquidates assets. Shares in Blue Owl fell 6% on that news. Lincoln looked at 7,000 company valuations, using data from over 225 asset managers globally, within its Private Market Index. It found: Recommended Video The enterprise value of the companies in the $250 billion index increased by 1.9%. Growth in earnings before interest, taxes, depreciation and amortization (Ebitda) among companies that have issued private debt is in decline, largely because the number of high-growth companies is in decline, lowering the average level of profitability across the index. The “shadow default” rate — meaning Show less Read more
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