Investors in Blue Owl Capital Corp II largely rejected a steep discount offer from hedge‑fund manager Boaz Weinstein’s Saba Capital. Less than 1% of the fund’s limited partners accepted a bid to buy shares at 65 cents on the dollar, underscoring their reluctance to swallow big losses for the investors in the industry today in the current market environment.

Saba’s proposal follows the fund’s halt on redemptions, locking investors until the vehicle winds down. The firm said it would provide consistent bids for private‑credit stakes, positioning itself as a reliable liquidity source. Limited uptake, however, underscores a wider trend of investors avoiding distressed exits in the private‑credit market across the sector for the year.

Weinstein and partner Kieran Goodwin have long targeted dislocations in credit markets, recently sparking an activist campaign against closed‑end funds trading below NAV. Their public comments warned that forced asset sales could accelerate redemption spirals, pushing loan prices into the low 90s. The Blue Owl episode illustrates the tension between liquidity demands and market pricing today.

Despite the response, Saba reiterated its commitment to buying stakes in gated funds, citing the limited size of OBDC II as a reason for the muted interest. The firm cited rising credit risk through 2027‑28 as a catalyst for liquidity opportunities. For investors, the episode signals that liquidity in private‑credit funds remains scarce and selective today.