> Why does Blue Owl borrow from a bank to lend? Why would it need investors if it borrows from a bank?

Leverage. They raise money in their public funds. And then they borrow, typically around 50% of their capital, to amplify returns.

Note: “Private credit lenders won’t lose money before private equity firms do. That’s how the capital stack of companies work: Equity is the first in line for losses. Before lenders like Apollo Global Management, Blue Owl Capital or Ares Management lose a dollar on their loans if a portfolio company fails, the private equity owners will already have been hit” [1]. Leveraging the senior debt is actually less risky than leveraging the underlying equity. (Though obviously they compound when done together.)

[1] https://www.nytimes.com/2026/03/12/business/dealbook/private...