At Blue Owl, we believe there is significant opportunity for investors to participate in the rapidly growing private software and technology sector in the United States. In this video, members of our senior executive team highlight some of the potentially attractive investment characteristics inherent to the space.

Software and technology companies have historically had favorable, risk-mitigating attributes for lenders

Mission critical solutions

Technology/software is fundamental to business operations

Highly recurring revenue

Strong visibility into recurring revenue streams

Market leaders

Dominant or growing players selling to established blue-chip customer bases

Strong profitability

Strong unit economics create substantial operating leverage

Strong customer retention

Highly embedded software with meaningful switching costs

Highly capital efficient

Low capex and working capital results in high free cash flow

Access a rapidly growing, largely non-public market

Software demand is generally inelastic and increasingly viewed as a “utility,” but a vast majority of the industry is not accessible via public markets.

Amount ($bn)
$ 222
$ 222
Global Financial Crisis (GFC) 2008-2009
$ 236
$ 269
$ 279
$ 299
$ 314
$ 313
$ 326
$ 369
$ 419
$ 477
$ 529
COVID-19 Pandemic 2020-2021
$ 736
$ 794
$ 891

As of April 2023 unless otherwise noted. All investments involve risk of loss, including loss of principal invested. There can be no assurance that historical trends will continue. 1. Gartner, Newsroom: Worldwide IT & Software Spending; pulled from press releases. 2. Public Technology Companies represented by Russell 3000 list of IT holdings. 3. Technology Total Market Source: CompTIA Cyberstates 2022 report as of March 2022.

Cumulative default allocation by industry1

(Since 1998)

All industries

All investments involve risk including potential loss of principal. Source: Default rates comprise S&P LCD loan data from January 1, 1998 through March 31, 2023 and there can be no guarantee that historical trends will continue. 1. LCD defines a default as an event in which the company files for bankruptcy, the facility gets downgraded to D by S&P (not due to below par buybacks), or the interest payment is missed without a forbearance. Industry default rate is calculated by taking the total industry default amount in US dollars and dividing it by the total default amount in US dollars of all loans.  2. The All Industries default rate shown represents a weighted average of all industry default rates by each industry default amount. 3. The specific industries shown herein are included as representative of the technology sector generally and are not intended to reflect a sole or primary area of investment of OTIC. Software is a sub-category in LCD database named “Software and Data Integration;” Tech is classified as “Computers and Electronics.” LCD represents Leveraged Commentary & Data, a provider of leveraged loan news, analytics, and index products. LCD is an offering of S&P Global Market Intelligence.

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:

  • You should not expect to be able to sell your shares regardless of how OTIC performs and you should consider that you may not have access to the money you invest for an indefinite period of time. An investment in shares of OTIC’s common stock is not suitable for you if you need access to the money you invest.
  • OTIC does not intend to list its shares on any securities exchange and does not expect a secondary market in its shares to develop. As a result, you may be unable to reduce your exposure in any market downturn. If you are able to sell your shares before a liquidity event is completed, if any, you will likely receive less than your purchase price.
  • OTIC has implemented a share repurchase program pursuant to which it intends to conduct quarterly repurchases of a limited number of outstanding shares of its common stock. OTIC’s board of directors has complete discretion to determine whether OTIC will engage in any share repurchase, and if so, the terms of such repurchase. OTIC’s share repurchase program includes numerous restrictions that may limit your ability to sell your shares. As a result, share repurchases may not be available each month. While OTIC intends to continue to conduct quarterly tender offers as described above, it is not required to do so and may suspend or terminate the share repurchase program at any time.
  • Distributions on OTIC’s common stock may exceed OTIC’s taxable earnings and profits, particularly during the period before it has substantially invested the net proceeds from its public offering. Therefore, portions of the distributions that OTIC pays may represent a return of capital to you for U.S. federal tax purposes. A return of capital is a return of a portion of your original investment in shares of OTIC common stock. As a result, a return of capital will (i) lower your tax basis in your shares and thereby increase the amount of capital gain (or decrease the amount of capital loss) realized upon a subsequent sale or redemption of such shares, and (ii) reduce the amount of funds OTIC has for investment in portfolio companies. OTIC has not established any limit on the extent to which it may use offering proceeds to fund distributions.
  • Distributions may also be funded in significant part, directly or indirectly, from (i) the waiver of certain investment advisory fees, that will not be subject to repayment to the Adviser and/or (ii) the deferral of certain investment advisory fees that may be subject to repayment to the Adviser and/or (iii) the reimbursement of certain operating expenses, that may be subject to repayment to the Adviser and its affiliates. Significant portions of distributions may not be based on investment performance In the event distributions are funded from waivers and/or deferrals of fees and reimbursements by OTIC’s affiliates, such funding may not continue in the future. If OTIC’s affiliates do not agree to reimburse certain of its operating expenses or waive certain of their advisory fees, then significant portions of OTIC’s distributions may come from offering proceeds or borrowings. The repayment of any amounts owed to OTIC’s affiliates will reduce future distributions to which you would otherwise be entitled.
  • The payment of fees and expenses will reduce the funds available for investment, the net income generated, the funds available for distribution and the book value of the common shares. In addition, the fees and expenses paid will require investors to achieve a higher total net return in order to recover their initial investment. Please see OTIC’s prospectus for details regarding its fees and expenses.
  • OTIC intends to invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be illiquid and difficult to value.
  • The Adviser and its affiliates face a number of conflicts with respect to OTIC. Currently, the Adviser and its affiliates manage other investment entities, including Blue Owl Tech Finance Corp. (OTF) and Blue Owl Technology Finance Corp II  (OTF II), and are not prohibited from raising money for and managing future investment entities that make the same types of investments as those OTIC targets. As a result, the time and resources that the Adviser devotes to OTIC may be diverted. In addition, OTIC may compete with any such investment entity also managed by the Adviser for the same investors and investment opportunities. Furthermore, the Adviser may face conflicts of interest with respect to services it may perform for companies in which OTIC invests as it may receive fees in connection with such services that may not be shared with OTIC.
  • The incentive fee payable by OTIC to the Adviser may create an incentive for the Adviser to make investments on OTIC’s behalf that are risky or more speculative than would be the case in the absence of such compensation arrangements. OTIC may be obligated to pay the Adviser incentive fees even if OTIC incurs a net loss due to a decline in the value of its portfolio and even if its earned interest income is not payable in cash.
  • The information provided above is not directed at any particular investor or category of investors and is provided solely as general information about Blue Owl products and services to regulated financial intermediaries and to otherwise provide general investment education. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as Blue Owl Securities LLC, its affiliates, and OTIC are not undertaking to provide impartial investment