Blue Owl investments are private credit investments that pose a threat to investors saving for retirement. The commissions for the sale of this investment are large. This leads some advisors to assert that the investments are moderate risk or good for a retirement portfolio when they are often not.
Recognizing the risks, regulators put special supervisory obligations on firms that sell alts because of the additional risk many carry.
Further, any type of alternative investment is limited for even the most sophisticated investors. Some firms and states limit the investment to 10% of the portfolio regardless of the level of risk the investor is willing to take.
Many investment experts also consider the upside of private credit as illusory. They opine that the return on private credit is no better than, and in some cases less, than more conservative and transparent investments.
Investors have recourse when advisors recommend investments that are too risky or contradict sound investment planning.
Jeffrey Pederson is an attorney that has recovered tens of millions for his clients over the last 25 years. In doing so, he has represented hundreds of investors losing savings from overly aggressive and fraudulent retirement planning like Blue Owl.
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