Rewrites throughout with CEO comments from conference call, details and context on software sell-off throughout

By Manya Saini

Feb 5 (Reuters) - Blue Owl's OWL.N Co-CEO Marc Lipschultz dismissed fears that AI could disrupt software businesses and weigh on its technology portfolios, after such worries triggered a global rout this week.

More than $800 billion had been wiped from the S&P 500 software and services index's .SPLRCIS market cap since January 28, as investors weigh whether AI has shifted from a tailwind for many of these companies to a potential disruption.

Investor concern over software companies spilled over into alternative asset managers, whose private credit portfolios include loans to the sector. Blue Owl disclosed the software portfolio accounts for 8% of its total assets under management.

"Every quarter we're going to have companies that go get in trouble and companies that get out of trouble, and even trouble doesn't mean we have lost anything," Lipschultz said on a post-earnings conference call with analysts.

"This monolithic view and action people are taking is going to prove, I think, quite misguided."

The stock pared losses to trade 2.4% lower after falling over 9% earlier in the session. Investment firm KKR KKR.N also said on Thursday it saw ways to make money from current market volatility linked to AI disruption fears.

"The book is strong. We don't see meaningful losses. We don't see deterioration in performance," Lipschultz added.

TURBULENT YEAR CLOSES

Blue Owl's shares ended 2025 down 36% after a plan to merge two of its private credit funds late last year rattled investors. The plan was later abandoned.

"There's no emergency here, the fund continues to perform well," Blue Owl co-President Craig Packer had said at the time.

Reuters reported later in November, citing sources, that Blue Owl had considered reviving the plan if the share price of the larger fund improved.

Blue Owl posted fourth-quarter profit ahead of Wall Street estimates on the back of strong performance in its credit and real assets platforms. Adjusted profit of 24 cents topped estimates of 22 cents, according to data compiled by LSEG.

Demand for private credit has continued despite recent worries as borrowers turn to direct lenders for flexible financing amid tighter conditions in traditional loan markets.

Blue Owl raised $17.3 billion in new capital commitments in the quarter, while its AUM crossed the $300 billion milestone.

Alternative asset managers invest in assets such as private credit, real estate and infrastructure, offering institutional and wealthy clients higher returns and diversification beyond public markets.

"It was a relatively slow year by OWL standards, but one that still saw strong growth in absolute terms," Oppenheimer analysts wrote in a note.

(Reporting by Manya Saini in Bengaluru; Editing by Anil D'Silva and Krishna Chandra Eluri)

((Manya.Saini@thomsonreuters.com; X: manya__saini;))