the worst monthly performance for their direct lending funds in more than three years, Bloomberg News reported on Friday.

Blue Owl Credit Income Corp., a privately held business development company, lost 0.86% in February, according to Bloomberg calculations based on regulatory filings. The $26 billion HPS Corporate Lending Fund declined 0.3% for the month, according to its website. Both funds' losses were the steepest since 2022, coinciding with the sharpest monthly decline in the leveraged loan market since that year.

The funds have posted divergent results year to date, despite the decline in February. The $35 billion Blue Owl fund has posted a loss of approximately 0.75% year-to-date, marking its worst start to the year since it began investing in 2021. The HPS fund posted a return of 0.51% for 2026, making it one of the few major competitors to remain in positive territory.

Apollo Debt Solutions also posted a gain year-to-date, with a return of 0.39%. February's losses come amid a massive outflow of funds from direct lending funds.