Blue Owl's tech lending fund derived more than a third of its reported income last year from interest paid in additional IOUs rather than cash. This trend has led the Federal Reserve to review banks that provide financing to private credit funds. The legal actions follow a warning from the SEC last week for accountants to apply more rigor to how such loan values are calculated.
Tuesday, October 20, 2026
Story
KKR Ares and Blue Owl Sued for Inflating Loan Values to Collect Bigger Fees
Business12 days ago
Lawsuits accuse fund managers of valuing loans to a large janitorial firm as high as full price even after the company's stock was written down to zero. These legal filings allege that private credit funds run by KKR, Ares and Blue Owl maintained inflated valuations on similar assets to collect higher management fees, since these loans do not trade on public markets and rely on manager discretion, Semafor reports.
Looking for more context or analysis?
Tilt chat provides reliable, tailored insights, alerts, and automations.