Saba Capital finds little appetite for tender offer of shares in Blue Owl, Starwood private credit funds

saba capital's tender offers for shares in blue owl and starwood private credit funds got little interest. the hedge fund said participation came in "below initial expectations." saba offered liquidity to locked-up investors in blue owl capital corporation ii at a 35% discount in early march. it launched a similar program at starwood real estate income trust at a 24% or 29% discount. through the tenders, saba acquired about $10 million in aggregate face value across 190 trades — "substantially all" from sreit. the blue owl tender reportedly got less than 1% of what was offered. saba said the pool of illiquid capital in obdc ii was "naturally limited" because only $332 million remained in the fund. but the firm sees credit risk building toward 2027 and 2028, and believes the "opportunity set for providing liquidity at scale will grow considerably." saba said it's now "considering providing bids on a number of additional products," including the cliffwater interval fund and blue owl's ocic.