A better way to invest in tech

OTIC seeks to provide investors attractive current income and the potential for capital appreciation by investing in established enterprise software and technology companies.

Managed by Blue Owl's institutional direct lending platform with a proven track record of managing similar products.

Past performance is not a guarantee of future results. Diversification will not guarantee profitability or protection against loss. All investments are subject to risk, including the loss of the principal amount invested and volatility. An investment in ORTIC is not intended to be a complete investment program.
1. Blue Owl was named Private Credit Manager of the Year by CIO Magazine in 2019. For more information, please visit: https://www.ai-cio.com/lists/2019-asset-management-servicing-winners. Accolades are independently determined and awarded by their respective publications. Accolades can be based on a variety of criteria including recognition by peers, demonstrated leadership, strategy innovation, deal making skills  and more. Neither Blue Owl nor its employees pay a fee in exchange for these ratings.

OTIC
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Access

Offers individual investors access to:

  • Blue Owl’s award-winning institutional direct lending platform1
  • Private technology companies otherwise inaccessible to the public
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Differentiated returns

Flexible investment strategy seeks to deliver:

  • Attractive current income via senior secured floating rate direct lending
  • Upside potential by investing in hybrid securities of established and high-growth technology companies
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Risk management

Seeks to mitigate investment risk by:

  • Structuring loans that are senior in the capital structure with attractive loan-to-values
  • Constructing a well diversified portfolio containing 1-2% position sizes

The investment strategy

Providing access to private software and technology companies while limiting the inherent risk of public equity markets
Traditional financing (80-90%)
  • Made up of first and second lien senior secured loans made to established private software companies, diversified by end market; targeting 1-2% position sizes and low loan-to-values (LTV).
  • Seeks to provide an attractive current income stream for portfolios in all market conditions.
Growth capital (10-20%)
  • Made up of preferred and common equity, convertible notes, warrants, and unsecured debt.
  • Seeks to provide income and the potential to participate in the upside of favorable equity markets.

A focus on structuring investments with attractive loan-to-values

In the event of a decline in a company’s market value, debt investors are “cushioned” by equity
Company A
$100 $75 $50 $25 $0 $70 $30 First Lien Term Loan Equity Loan-to-Value = 30%
Company A’s Value Declines by 25%
$100 $75 $50 $25 $0 $45 $30 First Lien Term Loan Equity Loan-to-Value = 40%

Charts are for illustrative purposes only and are not representative of any investment’s performance. Actual results may vary. Senior secured loans may provide priority of payment, but payment is not guaranteed. Senior secured loans are subject to risks, including that loans can be difficult to value and are highly illiquid; they are also subject to nonpayment, collateral, bankruptcy, default, extension, prepayment and insolvency risks. Collateral securing any loan may lose some or all of its value over time, which could have adverse consequences on investment including loss of principal. Blue Owl focuses primarily on originating senior-secured loans to middle market companies but as disclosed in offering documents, Blue Owl software strategies may also invest in unsecured loans, subordinated loans, equities and warrants.

Key terms

Structure Perpetually non-traded business development company; OTIC does not intend to seek a liquidity event
Management fee 1.25% of net assets (no management fee on leverage)
Incentive fee • 12.5% of net investment income subject to 5% hurdle
• 12.5% of realized capital gains
Distributions1 Paid monthly (distributions are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations)
Tax reporting 1099
Closings Monthly closes; 100% of capital invested upon closing
Liquidity2 Up to 5%/quarter; 20%/year of outstanding shares (share repurchase plan).
No early withdrawal charge.
Class S Class D Class I
Minimal initial investment Investment minimums may vary. Please consult your financial representative.
Max upfront fee4,5 Up to 3.50% of net offering proceeds Up to 1.50% of net offering proceeds None
Ongoing service fee4,6 0.85% of net asset value (annualized) 0.25% of net asset value (annualized) 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. 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 OTIC terms. If you express an interest in investing in OTIC, 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. 1. OTIC 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, and that the Issuer has no limits on such amounts it may pay from such sources. 2. 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. 3. Suitability requirements vary by broker-dealer. Please consult your financial representative. 4. To be paid by the investor. 5. Composition of Class S upfront sales load may change but will not exceed 3.50%. 6. Ongoing Service Fee, together with the Maximum Upfront Sales Load, to be capped at 10% of gross proceeds or such other lower amount as Owl Rock may negotiate with its distribution partners.

Financial advisors: request materials now

OTIC is only available to financial advisors at participating Broker/Dealers and Registered Investment Advisors. If you would like to order materials or schedule a meeting with your Blue Owl representative, please contact our sales desk.

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Individual Investors should consult their financial advisor to learn more.

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