A major U.S. investment firm is facing significant financial exposure following the collapse of a British property lending company, according to a Bloomberg News report released Friday.
Blue Owl, an alternative asset management company overseeing $307 billion in investments, has approximately 36 million pounds ($48 million) tied up with Century Capital Partners Ltd, a London-based lender that went into administration in February, sources familiar with the situation told Bloomberg.
The American private-credit company had provided financing for the highest-risk portion of loans that Century originated, focusing primarily on expensive properties in central London’s real estate market.
Century Capital collapsed with roughly 95 million pounds in total obligations, occurring just days before Market Financial Solutions, a larger competitor, also entered a British form of bankruptcy proceedings.
According to the Bloomberg report, both lending companies depended on credit lines from private investment firms and traditional banks to create short-term property loans. These loans typically served borrowers unable to obtain conventional bank financing and carried elevated interest rates. The report noted that no creditor has alleged fraudulent activity by Century Capital.
Neither Century Capital nor Blue Owl provided immediate responses when contacted for comment by Reuters.
Blue Owl has faced increased investor attention in 2026 as financial pressures, restrictions on withdrawals, and a substantial asset sale have sparked wider questions about emerging difficulties in the private-credit industry.
The failure of Market Financial Solutions has intensified worries about lending practices and the rapidly expanding private finance sector.
**STOCK PERFORMANCE DECLINING**
Last month, Blue Owl announced plans to divest $1.4 billion worth of assets from three investment funds, distribute some proceeds back to certain investors, and reduce outstanding debt. The company also permanently eliminated quarterly withdrawal options for investors in its smallest fund, which primarily serves high-net-worth individuals.
This move negatively affected share prices by raising concerns about private lending standards and potential cash flow problems throughout the sector.
Blue Owl’s stock price dropped more than 6% on Friday and has declined over 30% during 2026. Over the past twelve months, the company’s shares have lost nearly 49% of their value.
The current exchange rate shows $1 equals 0.7485 British pounds.
