Blue Owl Capital co-chief executives Doug Ostrover and Marc Lipschultz have modified the terms of personal loans that previously used their shares in the asset management company as collateral.

The two co-founders of the investment firm are no longer borrowing against their equity stakes in Blue Owl, according to reports from financial news outlets. The loan arrangements had previously drawn regulatory and investor scrutiny.

Blue Owl Capital is a major alternative asset manager that focuses on credit investments and real estate. The firm was formed through a merger and went public in 2021.

Ostrover and Lipschultz serve as co-CEOs of the company. The specific details of the revised loan terms and the timeline for the changes were not immediately disclosed.

The use of company shares as collateral for personal borrowing by executives can raise corporate governance concerns among investors and regulators, as it can create potential conflicts of interest and affect executive decision-making regarding company operations.