Blue Owl Capital Corp (OBDC)

Blue Owl Capital Corporation (NYSE: OBDC) is an externally managed, closed-end management investment company, formed in Maryland in 2015, that has elected to be regulated as a business development company and to be treated as a regulated investment company for U.S. federal income tax purposes. Its investment objective is to generate current income and, to a lesser extent, capital appreciation by originating loans to, and making debt and equity investments in, U.S. middle-market companies, generally those with EBITDA of $10 million to $250 million or annual revenue of $50 million to $2.5 billion. It often participates in transactions sponsored by private equity and venture capital firms.

Its investments include senior secured or unsecured loans, subordinated or mezzanine loans and, to a lesser extent, equity and equity-related securities such as warrants and preferred stock, held directly or through special purpose vehicles. Target credit investments typically have maturities of three to ten years and range from $20 million to $500 million. As of December 31, 2024, the portfolio had investments in 227 companies across 30 industries, with an average investment of about $58.1 million at fair value.

Internet software and services was the largest industry at 10.5%. By fair value, the portfolio was 75.6% first lien debt, 5.4% second lien debt, 2.3% unsecured debt, 2.2% joint ventures, 2.8% preferred equity and 11.7% common equity, and 96.4% of debt investments were floating rate. The company is advised and administered by Blue Owl Credit Advisors LLC, an indirect affiliate of Blue Owl Capital Inc. within Blue Owl's Credit platform.

That platform's direct lending strategies are diversified lending, technology lending, first lien lending and opportunistic lending. They are offered through BDCs, private funds and separately managed accounts, and the Blue Owl Credit Advisers managed $135.71 billion of assets as of year-end 2024. The company finances itself with a senior secured revolving credit facility, a special purpose vehicle asset facility, unsecured notes and collateralized loan obligation securitizations, and it generally intends to distribute substantially all available earnings quarterly.

On January 13, 2025, it completed a merger with Blue Owl Capital Corporation III (OBDE), which enlarged the combined company.