2 Cautionary Tales from Private Equity and Private Credit Markets
What investors can learn from the sagas involving ERShares and Blue Owl Capital.
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Show Notes
Two high-profile cases in the public-private markets are testing boundaries and investors. ERShares Private-Public Crossover ETF’s stake in illiquid holdings, including SpaceX, has apparently run afoul SEC rules. Meanwhile, a high-flying alternative assets manager has changed the rules for returning investors’ cash from one of its funds. And Blue Owl Capital is now facing backlash.
Lessons From a Private Markets Bust: Why This ETF’s Investors Missed Out on SpaceX Gains
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On this episode:
00:00:00 Welcome
00:01:24 How XOVR ETF Differs From Typical ETFs
00:02:11 XOVR ETF Performance Versus Broader Stock Market
00:02:48 Why XOVR’s SpaceX Stake Swung Sharply
00:09:56 Blue Owl Capital’s Origins and Current Problems
00:13:25 Who Invests in Blue Owl’s Direct Lending Funds
00:18:09 Investor Lessons From Blue Owl’s Redemption Halt
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