Blue Owl Capital is accelerating its shift towards a multi-strategy alternative assets manager amid challenges in its private-credit business. The firm, a pioneer in private credit, has seen direct lending's share of its total assets decrease to approximately 35%, down from nearly 50% two years ago.

This strategic pivot is highlighted by the significant growth of its real assets segment. This division, established in 2021, has expanded its managed capital from $12 billion to $89.4 billion by the end of June. In the second quarter of this year, Blue Owl's real assets segment surpassed its credit operations in fundraising, indicating a strong investor appetite for this asset class.

Investor withdrawals from some of Blue Owl's direct-lending vehicles and its investments in software businesses have prompted this diversification. The firm's emphasis on real assets aims to provide a buffer against the current pressures in the private-credit market.