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.
Technology/software is fundamental to business operations
Strong visibility into recurring revenue streams
Dominant or growing players selling to established blue-chip customer bases
Strong unit economics create substantial operating leverage
Highly embedded software with meaningful switching costs
Low capex and working capital results in high free cash flow
Software demand is generally inelastic and increasingly viewed as a “utility,” but a vast majority of the industry is not accessible via public markets.
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.
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: