OTIC seeks to provide investors attractive current income with the opportunity for capital appreciation through the origination of debt and equity investments in established U.S. software and technology-related businesses.
NAV $10.44 | Annualized total distrib. rate¹: 9.75%
NAV $10.44 | Annualized total distrib. rate¹: 9.50%
NAV $10.44 | Annualized total distrib. rate¹: 8.90%
OTIC is a perpetually non-traded business development company (BDC) that employs a risk-adjusted approach to investing in software and technology-related businesses.
The strategy seeks to generate income and capital appreciation through multiple sources, including:
OTIC’s diversified portfolio provides investors with differentiated exposure to private software and technology-focused companies that would otherwise typically be inaccessible to the public.
Learn more about OTIC’s investment strategy, approach and key terms.
Direct lending is where a single or a small group of non-bank lenders (or direct lenders) provide a financing solution directly to a private company (or borrower) who often seek loans to finance growth opportunities and their day-to-day operations. The direct lender and borrower directly negotiate a customized solution that suits the needs of both parties. These borrowers are typically privately held and/or owned by private equity firms and are looking for a reliable alternative to a bank.
Technology lending is a private credit strategy within direct lending, focused on directly originating loans to technology or software companies seeking financing solutions.
At Blue Owl, we take a differentiated approach that offers investors access to established, U.S.-based software and technology-related companies with compelling business models and strong customer and end-market diversification.
OTIC focuses on dominant or growing software companies in niche markets that are selling products to established customer bases. These companies generally have attributes that can make them compelling investments, including strong customer retention rates, and potentially highly recurring and predictable revenue. Further, these companies are inherently diversified into a variety of sectors due to end market applications, thereby, seeking to mitigate our portfolio exposure to market volatility and economic cycles.
OTIC seeks to construct a conservative portfolio comprising primarily of senior secured positions. These positions are typically supported by meaningful equity cushions backed by high-quality financial sponsors.
Structure | Perpetually non-traded business development company; OTIC does not intend to seek a liquidity event |
Closings | Monthly closes; 100% of capital invested upon closing |
Distributions2 | Paid monthly (distributions are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations) |
Liquidity3 | Up to 5%/quarter; 20%/year of outstanding shares (share repurchase plan). No early withdrawal charge. |
Fund leverage4 | Target 0.9x – 1.25x debt-to-equity with regulatory cap at 2.0x |
Total annual expense (includes interest expense)5 | Class S: 10.75%; Class D: 10.15%; Class I: 9.90% |
Total annual expense (excludes interest expense)5 | Class S: 2.58%; Class D: 1.98%; Class I: 1:73% |
Management fee | 1.25% of net assets (no management fee on leverage) |
Incentive fee6 | • 12.5% of net investment income subject to 5% hurdle • 12.5% of realized capital gains |
Minimum initial investment | Investment minimums vary. Please consult your financial representative. |
Suitability7 | Gross annual income of at least $70,000 and a net worth of at least $70,000; or a net worth of at least $250,000. Certain states have higher suitability standards, please refer to the fund prospectus for full details. |
Tax reporting | 1099 |
Max upfront fee8,9 | Class S: Up to 3.50% of net offering proceeds; Class D: Up to 1.50% of net offering proceeds; Class I: None |
Ongoing service fee8,10 | Class S: 0.85% of net asset value (annualized); Class D: 0.25% of net asset value (annualized); Class I: None |
This information is summary in nature and is in no way complete, and these terms have been simplified for illustrative purposes and may change materially at any time without notice. In particular, this information omits certain important details about the stated terms and does not address certain other key Fund terms or risks or represent a complete list of all OCIC terms. If you express an interest in investing in OCIC, you
will be provided with a prospectus, subscription agreement, and other documents ("Fund Documents"), which shall govern in the event of any conflict with the general terms listed herein. You must rely only on the information contained in the Fund Documents in making any decision to invest. Please see prospectus for corresponding terms.
Direct lending is where a single or a small group of non-bank lenders (or direct lenders) provide a financing solution directly to a private company (or borrower) who often seek loans to finance growth opportunities and their day-to-day operations. The direct lender and borrower directly negotiate a customized solution that suits the needs of both parties. These borrowers are typically privately held and/or owned by private equity firms and are looking for a reliable alternative to a bank.
Technology lending is a private credit strategy within direct lending, focused on directly originating loans to technology or software companies seeking financing solutions.
At Blue Owl, we take a differentiated approach that offers investors access to established, U.S.-based software and technology-related companies with compelling business models and strong customer and end-market diversification.
OTIC focuses on dominant or growing software companies in niche markets that are selling products to established customer bases. These companies generally have attributes that can make them compelling investments, including strong customer retention rates, and potentially highly recurring and predictable revenue. Further, these companies are inherently diversified into a variety of sectors due to end market applications, thereby, seeking to mitigate our portfolio exposure to market volatility and economic cycles.
OTIC seeks to construct a conservative portfolio comprising primarily of senior secured positions. These positions are typically supported by meaningful equity cushions backed by high-quality financial sponsors.
Structure | Perpetually non-traded business development company; OTIC does not intend to seek a liquidity event |
Closings | Monthly closes; 100% of capital invested upon closing |
Distributions2 | Paid monthly (distributions are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations) |
Liquidity3 | Up to 5%/quarter; 20%/year of outstanding shares (share repurchase plan). No early withdrawal charge. |
Fund leverage4 | Target 0.9x – 1.25x debt-to-equity with regulatory cap at 2.0x |
Total annual expense (includes interest expense)5 | Class S: 10.75%; Class D: 10.15%; Class I: 9.90% |
Total annual expense (excludes interest expense)5 | Class S: 2.58%; Class D: 1.98%; Class I: 1:73% |
Management fee | 1.25% of net assets (no management fee on leverage) |
Incentive fee6 | • 12.5% of net investment income subject to 5% hurdle • 12.5% of realized capital gains |
Minimum initial investment | Investment minimums vary. Please consult your financial representative. |
Suitability7 | Gross annual income of at least $70,000 and a net worth of at least $70,000; or a net worth of at least $250,000. Certain states have higher suitability standards, please refer to the fund prospectus for full details. |
Tax reporting | 1099 |
Max upfront fee8,9 | Class S: Up to 3.50% of net offering proceeds; Class D: Up to 1.50% of net offering proceeds; Class I: None |
Ongoing service fee8,10 | Class S: 0.85% of net asset value (annualized); Class D: 0.25% of net asset value (annualized); Class I: None |
This information is summary in nature and is in no way complete, and these terms have been simplified for illustrative purposes and may change materially at any time without notice. In particular, this information omits certain important details about the stated terms and does not address certain other key Fund terms or risks or represent a complete list of all OCIC terms. If you express an interest in investing in OCIC, you
will be provided with a prospectus, subscription agreement, and other documents ("Fund Documents"), which shall govern in the event of any conflict with the general terms listed herein. You must rely only on the information contained in the Fund Documents in making any decision to invest. Please see prospectus for corresponding terms.
OTIC delivers key benefits to investors seeking a differentiated approach to software and technology investing.
OTIC provides access to private, market-leading software and technology-related companies that are typically inaccessible to the public.
OTIC’s flexible investment strategy combines traditional financings and growth capital investments to maximize total return through current income and the potential for capital appreciation.
OTIC's risk mitigation strategy focuses on making predominantly senior secured loans with low loan-to-values to high quality, mission-critical software, and technology-related companies. that have inherently defensive characteristics and strong private equity support.
Blue Owl’s net lease real estate strategy takes a different approach from traditional real estate, one focused on creditworthiness of the underlying tenant, which is purpose built for today’s market environment.
Illustrative Investment Characteristics | Traditional Real Estate1 | Blue Owl Net Lease | IG Fixed Income |
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Primary investment objective
Capital appreciation
Income
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Realize capital appreciation from active investment management and asset management
Capital appreciation
Income
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Generate current income and, to a lesser extent, capital appreciation
Capital appreciation
Income
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Generate current income
Capital appreciation
Income
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Return composition
Capital appreciation
Income
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Realize capital appreciation from active investment management and asset management
Capital appreciation
Income
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Generate current income and, to a lesser extent, capital appreciation
Capital appreciation
Income
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Generate current income
Capital appreciation
Income
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Cashflow
Capital appreciation
Income
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Variable cash flows
Capital appreciation
Income
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Long-term contractual cash flows with escalators
Capital appreciation
Income
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Contractual cash flows
Capital appreciation
Income
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Creditworthy underlying tenant/borrower
Capital appreciation
Income
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Sometimes
Capital appreciation
Income
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Always2
Capital appreciation
Income
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Always
Capital appreciation
Income
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Volatility of capital appreciation
Capital appreciation
Income
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Higher volatility
Capital appreciation
Income
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Lower volatility
Capital appreciation
Income
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None
Capital appreciation
Income
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Liquidity
Capital appreciation
Income
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Less liquid
Capital appreciation
Income
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More liquid
Capital appreciation
Income
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Liquid
Capital appreciation
Income
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Tax-efficiency of income
Capital appreciation
Income
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High
Capital appreciation
Income
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High
Capital appreciation
Income
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Low
Capital appreciation
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Headline risks
Capital appreciation
Income
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Capital appreciation
Income
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Tenant credit
Capital appreciation
Income
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Bond credit
Capital appreciation
Income
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The graphic above seeks to examine for illustrative and educational purposes only similar characteristics of different types of investments solutions. This is not a comparison of like products but rather an illustration of different products with similar characteristics.
1.Based on Blue Owl research on open-end core funds. The terms, investment targets and potential risks of each individual core fund offered by non-Blue Owl sponsors may vary and investors should independently evaluate the risks involved
2.Investment grade companies must have “BBB-” rating or higher by S&P. Creditworthy refers to businesses that Blue Owl deems financially sound enough to justify an extension of credit or engage in a lease agreement. Tenants are creditworthy or investment grade at acquisition.
OTIC's risk mitigation strategy focuses on making predominantly senior secured loans with low loan-to-values to software and technology-related companies that have inherently defensive characteristics and strong private equity support.
Share Class | 1-month | 3-month | YTD | 1-year | ITD |
---|---|---|---|---|---|
Class I | 0.81% | 2.55% | 8.95% | 12.59% | 11.58% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $10.39 | $10.40 | $10.44 | $10.45 | $10.47 | $10.42 | $10.43 | $10.44 | $10.43 | $10.44 | - | - |
2023 | $10.17 | $10.15 | $10.12 | $10.15 | $10.11 | $10.14 | $10.21 | $10.26 | $10.28 | $10.21 | $10.32 | $10.38 |
2022 | - | - | - | - | $9.96 | $9.81 | $10.00 | $10.04 | $9.93 | $9.97 | $10.01 | $10.02 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | 0.82% | 0.82% | 1.39% | 0.81% | 0.91% | 0.52% | 0.81% | 0.81% | 0.91% | 0.81% | - | - | 8.95% |
2023 | 2.99% | 0.54% | 0.44% | 1.04% | 0.34% | 1.04% | 1.43% | 1.22% | 0.92% | 0.24% | 1.81% | 1.50% | 14.34% |
2022 | - | - | - | - | 0.06% | -0.92% | 2.56% | 1.05% | -0.39% | 1.12% | 1.15% | 0.85% | 5.56% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 Distribution | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | - |
2024 Special Distribution | - | - | $0.0300 | - | - | $0.0300 | - | - | $0.0300 | - | - | - |
2023 Distribution | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 | $0.0748 |
2023 Special Distribution | $0.0750 | - | - | - | - | - | - | - | - | $0.0200 | - | $0.0200 |
2022 Distribution | - | - | - | - | $0.0458 | $0.0581 | $0.0613 | $0.0646 | $0.0711 | $0.0711 | $0.0748 | $0.0748 |
2022 Special Distribution | - | - | - | - | - | - | - | - | - | - | - | - |
Distribution payments are not guaranteed. Blue Owl Technology Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.81 per share for Class S, $0.87 per share for Class D, and $0.90 per share for Class I, resulting in annualized distribution rates of 7.76% for Class S shares, 8.35% for Class D shares, and 8.59% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OTIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OTIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending September 30, 2024. For further information, please see our SEC filings at www.sec.gov.
Share Class | 1-month | 3-month | YTD | 1-Year | ITD |
---|---|---|---|---|---|
Class D (No sales load) | 0.79% | 2.49% | 8.73% | 12.31% | 11.30% |
Class D (Max sales load) | -0.70% | 0.98% | 7.12% | 10.65% | 10.64% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $10.39 | $10.40 | $10.44 | $10.45 | $10.47 | $10.42 | $10.43 | $10.44 | $10.43 | $10.44 | - | - |
2023 | $10.17 | $10.15 | $10.12 | $10.15 | $10.11 | $10.14 | $10.21 | $10.26 | $10.28 | $10.21 | $10.32 | $10.38 |
2022 | - | - | - | - | $9.96 | $9.81 | $10.00 | $10.04 | $9.93 | $9.97 | $10.01 | $10.02 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | 0.80% | 0.80% | 1.37% | 0.79% | 0.89% | 0.50% | 0.79% | 0.79% | 0.89% | 0.79% | - | - | 8.73% |
2023 | 2.97% | 0.52% | 0.42% | 1.01% | 0.32% | 1.02% | 1.41% | 1.20% | 0.90% | 0.22% | 1.79% | 1.48% | 14.06% |
2022 | - | - | - | - | 0.04% | -0.94% | 2.54% | 1.02% | -0.41% | 1.10% | 1.13% | 0.83% | 5.39% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 Distribution | $0.0726 | $0.0727 | $0.0726 | $0.0726 | $0.0726 | $0.0726 | $0.0726 | $0.0726 | $0.0726 | $0.0726 | $0.0726 | - |
2024 Special Distribution | - | - | $0.0300 | - | - | $0.0300 | - | - | $0.0300 | - | - | - |
2023 Distribution | $0.0726 | $0.0728 | $0.0726 | $0.0727 | $0.0726 | $0.0727 | $0.0726 | $0.0726 | $0.0727 | $0.0726 | $0.0727 | $0.0726 |
2023 Special Distribution | $0.0750 | - | - | - | - | - | - | - | - | $0.0200 | - | $0.0200 |
2022 Distribution | - | - | - | - | $0.0438 | $0.0561 | $0.0592 | $0.0625 | $0.0691 | $0.0690 | $0.0727 | $0.0726 |
2022 Special Distribution | - | - | - | - | - | - | - | - | - | - | - | - |
Distribution payments are not guaranteed. Blue Owl Technology Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.81 per share for Class S, $0.87 per share for Class D, and $0.90 per share for Class I, resulting in annualized distribution rates of 7.76% for Class S shares, 8.35% for Class D shares, and 8.59% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OTIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OTIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending September 30, 2024. For further information, please see our SEC filings at www.sec.gov.
Share Class | 1-month | 3-month | YTD | 1-year | ITD |
---|---|---|---|---|---|
Class S (No sales load) | 0.74% | 2.34% | 8.19% | 11.64% | 10.64% |
Class S (Max sales load) | -2.67% | -1.12% | 4.53% | 7.87% | 9.13% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $10.39 | $10.40 | $10.44 | $10.45 | $10.47 | $10.42 | $10.43 | $10.44 | $10.43 | $10.44 | - | - |
2023 | $10.17 | $10.15 | $10.12 | $10.15 | $10.11 | $10.14 | $10.21 | $10.26 | $10.28 | $10.21 | $10.32 | $10.38 |
2022 | - | - | - | - | $9.96 | $9.81 | $10.00 | $10.04 | $9.93 | $9.97 | $10.01 | $10.02 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | 0.74% | 0.75% | 1.32% | 0.74% | 0.83% | 0.45% | 0.74% | 0.74% | 0.84% | 0.74% | - | - | 8.19% |
2023 | 2.92% | 0.47% | 0.37% | 0.97% | 0.27% | 0.97% | 1.36% | 1.15% | 0.85% | 0.17% | 1.74% | 1.43% | 13.39% |
2022 | - | - | - | - | -0.01% | -0.99% | 2.49% | 0.87% | -0.36% | 1.05% | 1.08% | 0.77% | 4.97% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 Distribution | $0.0673 | $0.0678 | $0.0673 | $0.0675 | $0.0673 | $0.0675 | $0.0673 | $0.0673 | $0.0675 | $0.0673 | $0.0675 | - |
2024 Special Distribution | - | - | $0.0300 | - | - | $0.0300 | - | - | $0.0300 | - | - | - |
2023 Distribution | $0.0675 | $0.0681 | $0.0674 | $0.0677 | $0.0674 | $0.0677 | $0.0675 | $0.0674 | $0.0676 | $0.0674 | $0.0676 | $0.0673 |
2023 Special Distribution | $0.0750 | - | - | - | - | - | - | - | - | $0.0200 | - | $0.0200 |
2022 Distribution | - | - | - | - | $0.0391 | $0.0511 | $0.0542 | $0.0574 | $0.0641 | $0.0640 | $0.0678 | $0.0675 |
2022 Special Distribution | - | - | - | - | - | - | - | - | - | - | - | - |
Distribution payments are not guaranteed. Blue Owl Technology Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.81 per share for Class S, $0.87 per share for Class D, and $0.90 per share for Class I, resulting in annualized distribution rates of 7.76% for Class S shares, 8.35% for Class D shares, and 8.59% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OTIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OTIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending September 30, 2024. For further information, please see our SEC filings at www.sec.gov.
OTIC has a highly defensive, diversified portfolio with borrowers spanning a wide range of products and end markets with uncorrelated business drivers.
Asset Type
Industry Diversification
Past performance is not representative of future results. Click here to view more important information.
Company17 | Industry | Facility type | Fair Value | Interest rate18 | % of portfolio |
---|---|---|---|---|---|
Cell label IRI Group Holdings, Inc. | Cell label Food & staples retailing | Cell label 1st Lien | $151,191 | Cell label S + 5.00% | Cell label 3.0% |
Cell label SailPoint Technology Holdings, Inc. | Cell label Systems software | Cell label 1st Lien | $113,788 | Cell label S + 6.00% | Cell label 2.3% |
Cell label Magnet Forensics, LLC | Cell label Application Software | Cell label 1st Lien | $100,504 | Cell label S + 5.25% | Cell label 2.0% |
Cell label Anaplan, Inc | Cell label Application software | Cell label 1st Lien | $92,757 | Cell label S + 5.25% | Cell label 1.9% |
New Relic | Systems software | 1st Lien | $90,316 | S + 6.75% | 1.8% |
Cell label Blackhawk Network Holdings, Inc. | Cell label Diversified financial services | Cell label 1st Lien | $90,107 | Cell label S + 5.00% | Cell label 1.8% |
Cell label Datavant | Cell label Healthcare technology | Cell label 1st Lien | $84,279 | Cell label S + 5.00% | Cell label 1.7% |
CSI | Diversified financial services | 1st Lien | $71,960 | S + 5.25% | 1.4% |
Kaseya, Inc. | IT Services | 1st Lien | $70,224 | S + 5.50% | 1.4% |
Audiotonix | Entertainment | 1st Lien | $69,006 | S + 5.25% | 1.4% |
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The vast majority of private credit offerings take a sector-agnostic approach to portfolio construction. OTIC brings a differentiated approach that grants investors access to a diversified portfolio of loans to established software and technology-related businesses. OTIC’s emphasis on first lien senior secured loans allows investors to maintain exposure to this sector in a more defensive approach. The compelling business model of technology companies, including the potential for rapid growth, and their inherently diversified nature due to the variety of their end market applications can create conditions for favorable risk-adjusted returns for investors.
We focus our investments in companies with an enterprise value of at least $50 million and that are backed by venture capital firms or private equity firms that are active investors in and have an expertise in technology companies and technology-related industries. Our target investments typically will range in size between $20 million and $500 million.
From a portfolio allocation standpoint, OTIC invests 80-90% of the portfolio in traditional financing and 10-20% in growth capital. OTIC’s traditional financings are predominantly first lien, senior secured loans to established private software and technology-related companies across diversified by end markets. Traditional financing investments seek to provide an attractive current income stream across market conditions. Growth capital investments seek to provide income and the potential for capital appreciation.
We generally invest in dominant or growing players in niche markets that are selling products to established customer bases. As a result, technology companies have attributes that make them compelling investments, including strong customer retention rates, and highly recurring and predictable revenue. Further, technology companies are typically highly capital efficient, with limited capital expenditures and high free cash flow conversion. In addition, the replicable nature of technology products creates substantial operating leverage which typically results in strong profitability. We believe that software businesses make compelling investments because they are inherently diversified into a variety of sectors due to end market applications and have been one of the more defensive sectors throughout economic cycles.
OTIC is structured as a continuously offered, perpetually private BDC. The fund will have monthly closes and 100% of capital will be drawn upon subscription. Suitable investors may purchase OTIC by completing a Subscription Agreement. Please see the Prospectus for complete details.
Investors in OTIC are admitted on the first business day of each month. New investors will receive their first distribution ~20 business days following the last business day of their month of admission. Subject to OTIC’s Board of Directors and applicable legal restrictions, OTIC intends to pay distributions monthly.
Under the share repurchase program, the Company intends to repurchase once per quarter no more than 5% of our outstanding shares of common stock.
Management fee: 1.25% of net assets.
Incentive Fee:
|
Class S |
Class D |
Class I |
Max upfront fee8,9 |
Up to 3.50% of net offering proceeds |
Up to 1.50% of net offering proceeds |
None |
Ongoing Service Fee8,10 |
0.85% of net asset value (annualized) |
0.25% of net asset value (annualized) |
None |
Investors must submit a signed subscription agreement. Please see the Prospectus for complete details.
The fund administrator posts investor statements to a portal on a monthly basis where each individual investor can download the statement. Please reach out to your Blue Owl representative for specific questions.
Investors in OTIC are admitted on the first business day of each month. New investors will receive their first distribution ~20 business days following the last business day of their month of admission. Subject to OTIC’s Board of Directors and applicable legal restrictions, OTIC intends to pay distributions monthly.
The vast majority of private credit offerings take a sector-agnostic approach to portfolio construction. OTIC brings a differentiated approach that grants investors access to a diversified portfolio of loans to established software and technology-related businesses. OTIC’s emphasis on first lien senior secured loans allows investors to maintain exposure to this sector in a more defensive approach. The compelling business model of technology companies, including the potential for rapid growth, and their inherently diversified nature due to the variety of their end market applications can create conditions for favorable risk-adjusted returns for investors.
We focus our investments in companies with an enterprise value of at least $50 million and that are backed by venture capital firms or private equity firms that are active investors in and have an expertise in technology companies and technology-related industries. Our target investments typically will range in size between $20 million and $500 million.
From a portfolio allocation standpoint, OTIC invests 80-90% of the portfolio in traditional financing and 10-20% in growth capital. OTIC’s traditional financings are predominantly first lien, senior secured loans to established private software and technology-related companies across diversified by end markets. Traditional financing investments seek to provide an attractive current income stream across market conditions. Growth capital investments seek to provide income and the potential for capital appreciation.
We generally invest in dominant or growing players in niche markets that are selling products to established customer bases. As a result, technology companies have attributes that make them compelling investments, including strong customer retention rates, and highly recurring and predictable revenue. Further, technology companies are typically highly capital efficient, with limited capital expenditures and high free cash flow conversion. In addition, the replicable nature of technology products creates substantial operating leverage which typically results in strong profitability. We believe that software businesses make compelling investments because they are inherently diversified into a variety of sectors due to end market applications and have been one of the more defensive sectors throughout economic cycles.
OTIC is structured as a continuously offered, perpetually private BDC. The fund will have monthly closes and 100% of capital will be drawn upon subscription. Suitable investors may purchase OTIC by completing a Subscription Agreement. Please see the Prospectus for complete details.
Investors in OTIC are admitted on the first business day of each month. New investors will receive their first distribution ~20 business days following the last business day of their month of admission. Subject to OTIC’s Board of Directors and applicable legal restrictions, OTIC intends to pay distributions monthly.
Under the share repurchase program, the Company intends to repurchase once per quarter no more than 5% of our outstanding shares of common stock.
Management fee: 1.25% of net assets.
Incentive Fee:
|
Class S |
Class D |
Class I |
Max upfront fee8,9 |
Up to 3.50% of net offering proceeds |
Up to 1.50% of net offering proceeds |
None |
Ongoing Service Fee8,10 |
0.85% of net asset value (annualized) |
0.25% of net asset value (annualized) |
None |
Investors must submit a signed subscription agreement. Please see the Prospectus for complete details.
The fund administrator posts investor statements to a portal on a monthly basis where each individual investor can download the statement. Please reach out to your Blue Owl representative for specific questions.
Investors in OTIC are admitted on the first business day of each month. New investors will receive their first distribution ~20 business days following the last business day of their month of admission. Subject to OTIC’s Board of Directors and applicable legal restrictions, OTIC intends to pay distributions monthly.
All data as of October 31, 2024 unless otherwise noted. Past performance is not a guarantee of future results
Endnotes
1. Distribution payments are not guaranteed. Blue Owl Technology Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.81 per share for Class S, $0.87 per share for Class D, and $0.90 per share for Class I, resulting in annualized distribution rates of 7.76% for Class S shares, 8.35% for Class D shares, and 8.59% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OTIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OTIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending September 30, 2024. For further information, please see our SEC filings at www.sec.gov.
2. Distribution payments are not guaranteed. Blue Owl Technology Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements.
3. Any periodic repurchase offers are subject in part to our available cash and compliance with the BDC and RIC qualification and diversification rules promulgated under the 1940 Act and the Code, respectively. While we Intend to continue to conduct quarterly repurchase offers as described above, we are not required to do so and may suspend or terminate the share repurchase program at any time. All periodic repurchase offers are subject to Board approval.
4. Under the 1940 Act, we are required to maintain an asset coverage ratio of 150%. We are not otherwise limited in the amount of leverage that we may incur, and the amount of leverage that we incur is within our discretion.
5. Total annual expenses include expenses incurred at the fund-level, which an investor in the Fund bears indirectly. Total annual expenses include base management fees, incentive fees, interest payment on borrowed funds, ongoing service fees, acquired fund fees and expenses, and other expenses as outlined in the fund's prospectus.
6. The incentive fee consists of an incentive fee on income and an incentive fee on capital gains. The incentive fee on income is calculated and payable quarterly in arrears, subject to a 5% hurdle, and includes a catch-up rate after the hurdle. For more information on the incentive fee, please see the Prospectus.
7. Suitability requirements vary by broker-dealer. Please consult your financial representative.
8. To be paid by the Investor.
9. Composition of Class S upfront sales load may change but will not exceed 3.50%.
10. Ongoing Service Fee, together with the maximum upfront sales load, to be capped at 10% of gross proceeds or such other lower amount as Blue Owl may negotiate with its distribution partners.
11. Past performance is not a guarantee of future results. Returns are compounded monthly. Total return is calculated as the change in monthly NAV (assuming any dividends and distributions, net of shareholder servicing fees, are reinvested in accordance with the Company’s dividend reinvestment plan), if any, divided by the beginning NAV. Returns reflect reinvestments of distributions and the deduction of ongoing expenses that are borne by investors, such as management fees, incentive fees, servicing fees, interest expense, offering costs, professional fees, director fees and other general and administrative expenses. An investment in the Company is subject to a maximum upfront sales load (Class S: 3.5%, Class D: 1.5%, Class I: No sales load) which will reduce the amount of capital available for investment. Operating expenses may vary in the future based on the amount of capital raised, the Adviser’s election to continue expense support, and other unpredictable variables. Total returns based on the max upfront fee load for an investor starting at the inception of the respective share class: Class S – May 1, 2022, Class D – May 1, 2022, Class I – May 1, 2022. Class I does not have upfront fees.
12. As of October 31, 2024. Based on par value and shown net of unfunded commitment amounts. Valuations may change over time. Based on debt portfolio only. Par value represents the face value of loans in the portfolio.
13. As of September 30, 2024 and based on fair value of portfolio reported in 3Q24 financials.
14. As of September 30, 2024. Weightings are based on fair value of investments unless otherwise noted. Borrower financials are derived from the most recently available portfolio company financial statements, have not been independently verified by Blue Owl, and may reflect a normalized or adjusted amount Accordingly, Blue Owl makes no representation or warranty in respect of this information.
15. As of September 30, 2024 and based on the portfolio reported in 3Q24 financials.
16. Other industries include Commercial Services & Supplies (3.2%), Diversified Consumer Services (2.9%), Health Care Equipment & Supplies (2.2%), Buildings & Real Estate (1.8%), Real Estate Management & Development (1.6%), Entertainment (1.4%), Life Sciences Tools & Services (1.4%), Banks (1.2%), Aerospace & Defense (1.1%), Hotels, Restaurants & Leisure (1.0%), Equity Real Estate Investment Trusts (REITs) (1.0%), Containers & Packaging (0.9%), Beverages (0.8%), Media (0.7%), Industrial Conglomerates (0.7%), Consumer Finance (0.7%), Construction & Engineering (0.6%), Pharmaceuticals (0.6%), Internet & Direct Marketing Retail (0.5%), Food Products (0.5%), Machinery (0.4%), Diversified Telecommunication Services (0.3%), Multiline Retail (0.3%), Water Utilities (0.2%), Capital Markets (0.2%), Specialty Retail (0.1%), and Building Products (0.1%).
17. Debt investments are shown as “Doing Business As” names. Please refer to the 10-K or 10-Q for actual borrower names. Holdings are subject to change and there is no assurance any investment will remain in our portfolio.
18. Unless otherwise indicated, loan contains a variable rate structure, and may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate (“SOFR” or “S”) (which can include one-, three-, six- or twelve-month SOFR), Euro Interbank Offered Rate (“EURIBOR” or “E”), Canadian Overnight Repo Rate Average (“CORRA” or “C”) (which can include one- or three-month CORRA), Australian Bank Bill Swap Bid Rate (“BBSY” or “BB”) (which can include one-, three-, or six-month BBSY), Sterling (SP) Overnight Interbank Average Rate (“SONIA” or “SA”) or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate (“Prime” or “P”), at the borrower’s option, and which reset periodically based on the terms of the loan agreement.
Important information
OTIC Risk Factors
Assets Under Management (“AUM”) refers to the assets that we manage and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; and (iii) uncalled capital commitments.
This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. Only a prospectus for Blue Owl Technology Income Corp. can make such an offer. This material is authorized only when it is accompanied or preceded by the Blue Owl Technology Income Corp. prospectus. Neither the SEC, the Attorney General of the State of New York nor any state securities commission has approved or disapproved of these securities or determined if the prospectus is truthful or complete. Any representation to the contrary is a criminal offense. Securities are offered through Blue Owl Securities LLC, member of FINRA/SIPC, as Dealer Manager
An investment in Blue Owl Technology Income Corp. (“OTIC”) is speculative and involves a high degree of risk, including the risk of a substantial loss of investment, as well as substantial fees and costs, all of which can impact an investor’s return. The following are some of the risks involved in an investment in OTIC’s common shares; however, an investor should carefully consider the fees and expenses and information found in the “Risk Factors” section of the OTIC prospectus before deciding to invest:
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