Blue Owl Cashes Out SpaceX at $1.25T for 10x Return
Blue Owl sells half its SpaceX stake at $1.25 trillion valuation, generating roughly 10x returns. Shares surge 10% as private credit firm beats Q1 estimates across the board.
Blue Owl Capital just showed what patient private market investing looks like.
The alternative asset manager sold approximately half its stake in SpaceX at a $1.25 trillion valuation, generating roughly 10 times its original investment. Blue Owl shares surged more than 10% on the news, reaching all-time highs.
This is one of the best private market returns in recent memory—and it comes as SpaceX prepares for what could be the largest IPO in history.
The SpaceX Bet
Blue Owl's SpaceX position traces back to 2021, when the firm's technology credit arm made a $27 million equity investment in the rocket company.
At the time, SpaceX was valued at roughly $100 billion. The investment represented a departure from Blue Owl's core lending business, a calculated bet on Elon Musk's space ambitions.
"We were one of SpaceX's earliest lenders," co-CEO Marc Lipschultz said on the earnings call. "The equity position was an extension of that relationship."
That $27 million is now worth somewhere north of $270 million. And Blue Owl still holds about half.
The Exit
Blue Owl sold its SpaceX shares in secondary transactions at a $1.25 trillion valuation—above the $750 billion level where SpaceX raised its last primary round and below the $2 trillion-plus number some expect at IPO.
The timing makes sense. SpaceX filed confidentially with the SEC in April for what reports suggest could be a $75 billion raise. Going public at a premium to the secondary sale price would make Blue Owl's remaining stake even more valuable.
By selling half now, Blue Owl locked in extraordinary returns while maintaining upside to what could be a historic public offering.
Beyond SpaceX
The SpaceX windfall grabbed headlines, but Blue Owl's quarter was strong across the board.
| Metric | Q1 2026 | Estimate | Beat/Miss |
|---|---|---|---|
| Revenue | $753.8M | $687.2M | +9.7% |
| AUM | $314.9B | $298B | +5.7% |
| Fee-Related Earnings | $0.27 | $0.24 | +12.5% |
Assets under management rose 15% year-over-year to $314.9 billion. The firm is benefiting from institutional appetite for private credit as banks retreat from lending.
Management raised full-year guidance, citing strong deployment opportunities and continued fundraising momentum. The company now expects fee-related earnings growth of 20% or better for 2026.
The Private Credit Story
Blue Owl's success reflects broader trends in alternative assets.
Since the regional banking crisis of 2023, private credit managers have filled the vacuum left by retreating banks. Companies that once borrowed from JPMorgan or Bank of America now turn to firms like Blue Owl, Apollo, and Blackstone.
That structural shift has driven rapid AUM growth across the sector. Blue Owl's 15% expansion tracks with peers and shows no signs of slowing.
The SpaceX return adds a different dimension. While private credit is Blue Owl's bread and butter, the technology equity book has generated outsized gains. Management suggested more opportunistic investments could follow.
"When we have conviction and the right relationship, we're willing to make concentrated bets," Lipschultz said. "SpaceX is the proof point."
IPO Watch
SpaceX's expected public offering could be the defining market event of 2026.
At a $2 trillion-plus valuation, SpaceX would debut as one of the world's most valuable companies—larger than Amazon or Alphabet. The offering could raise $75 billion or more, dwarfing previous IPO records.
Blue Owl holds roughly $135 million in SpaceX equity at current valuations. If the IPO prices at $2 trillion, that stake could be worth $200 million or more.
The firm isn't the only one positioning. Fidelity, Baron Capital, and various sovereign wealth funds all hold SpaceX stakes that will convert to liquid positions at IPO.
For retail investors, the SpaceX offering represents the first opportunity to own Musk's rocket company directly. The 2026 IPO market has been active, but nothing approaches SpaceX's scale.
What's Next for Blue Owl
The SpaceX exit validates Blue Owl's opportunistic approach to technology investing. But the core business remains private credit.
With rates still elevated and banks cautious, demand for alternative lending continues to grow. Blue Owl's direct lending funds have plenty of dry powder to deploy.
The stock's 10% rally prices in some of the SpaceX gains, but valuation remains reasonable relative to peers. At roughly 15x fee-related earnings, Blue Owl trades below Apollo and Blackstone despite stronger recent growth.
If SpaceX IPOs at a massive premium—and Blue Owl's remaining stake doubles again—there's more upside ahead. The company has transformed a modest 2021 bet into a defining investment.