On March 24, 2025, the US Senate voted 62-30 to confirm John Phelan as the 79th Secretary of the Navy. Eleven Democrats joined 51 Republicans to support the confirmation, including Armed Services Ranking Member Jack Reed (D-RI) and Senators Kaine, Kelly, Rosen, and Shaheen. Phelan had no military experience; he was the founder of Rugger Management LLC and the former chairman and CIO of MSD Capital, the merchant bank that manages Michael Dell's fortune.
Phelan's January 2025 OGE 278e disclosure showed $5 million to $25 million in Blue Owl Capital Class A common stock, plus founding-era Owl Rock GP carry interests through White Tip Investments LLC (two positions each producing "$5 million or more" in capital gains tied to Blue Owl appreciation), positions in two Blue Owl Healthcare Opportunities funds, and a $50 million-plus personal loan from MSD Capital at 3.31%. Senator Warren's March 2025 letter to Phelan flagged his $50 million Dell position, his Palantir gains, and his Red Cell Partners defense-tech holdings — but not Blue Owl. His ethics agreement contained no specific recusal requirement for Blue Owl.
Four months after confirmation, Phelan's department launched WEXMAC-TITUS, the procurement vehicle that, on January 29, 2026, paid Blue Owl Real Estate Net Lease Property Fund $119.5 million for a vacant Pennsylvania warehouse — double Schuylkill County's certified full-market-value assessment. Phelan's OGE certificate of divestiture for OWL common stock was issued June 11, 2025; his actual sale date is not on the public record.