Blue Owl BDCs Initiate Sale of $1.4 Billion in Investments to Major Institutions
Blue Owl Capital Corporation and its affiliated BDCs have made headlines as they announce the strategic sale of $1.4 billion in direct lending investments. This sale, finalized with agreements from prominent North American public pension and insurance investors, underscores both the demand and confidence that major institutional investors have in these assets. CEO Craig W. Packer emphasized that the interest in these investments was overwhelmingly robust, surpassing the total value of assets they chose to sell, indicating a strong market outlook for Blue Owl's lending platform.
The agreements specify that the investments will be sold at fair value, assessed at approximately 99.7% of par value as of February 12, 2026. This strategic move involves several separate sales that will include $600 million from Blue Owl Capital Corporation II (OBDC II), $400 million from Blue Owl Technology Income Corp. (OTIC), and $400 million from Blue Owl Capital Corporation, representing 34%, 6%, and 2% of their total commitments, respectively. This planned disinvestment showcases partial exposure to numerous portfolio companies across various industries, predominantly in internet software and services, reflecting the diversification and stability within the lending portfolios of Blue Owl.
The sale is part of a broader strategy to enhance liquidity for OBDC II’s shareholders. Upon completion of these transactions, the firm intends to provide a return of capital distribution to its shareholders, pending board approval. This distribution is projected to be around $2.35 per share, constituting 30% of OBDC II’s net asset value as of the end of 2025. This distribution not only serves as a significant benefit but also marks a pivotal liquidity event for shareholders, further reiterating the firm's commitment to delivering shareholder value.
Furthermore, the capital achieved from these asset sales will also aid OTIC and OBDC in reducing existing debt obligations, creating healthier balance sheets and the flexibility to invest in a favorable direct lending market moving forward. As evidenced by the transaction details, OTIC anticipates that post-sale, it will hold cash and undrawn debt capacity exceeding $1.6 billion, along with liquid loans, providing them a robust platform to seize attractive investment opportunities.
Kroll, LLC, an established advisory firm, has provided fairness opinions to ensure the transaction’s alignments with market expectations while maintaining governance standards across the boards of the respective Blue Owl BDCs. This transaction is slated for settlement in the first quarter of 2026, marking the fruitful culmination of ongoing efforts to manage the funds’ portfolios with an eye on maximizing returns and strategically orchestrating liquidity events.
In conjunction with this announcement, OBDC II is also committing to maintaining a consistent distribution of $0.0533 per share for the months of February and March, consistent with prior disbursements, ultimately leading to a cumulative distribution of $6.14 per share since the firm's inception.
This approach indicates the board's shift towards prioritizing liquidity through quarterly capital distributions, aiming to replace earlier focused tender offers and ensure a steady return flow to its shareholders. In the grand scheme, Blue Owl Capital continues to position itself as a pivotal player within the middle-market lending sector, backed by a robust strategy and a commitment to enhancing shareholder value through smart financial maneuvers.
The agreements specify that the investments will be sold at fair value, assessed at approximately 99.7% of par value as of February 12, 2026. This strategic move involves several separate sales that will include $600 million from Blue Owl Capital Corporation II (OBDC II), $400 million from Blue Owl Technology Income Corp. (OTIC), and $400 million from Blue Owl Capital Corporation, representing 34%, 6%, and 2% of their total commitments, respectively. This planned disinvestment showcases partial exposure to numerous portfolio companies across various industries, predominantly in internet software and services, reflecting the diversification and stability within the lending portfolios of Blue Owl.
The sale is part of a broader strategy to enhance liquidity for OBDC II’s shareholders. Upon completion of these transactions, the firm intends to provide a return of capital distribution to its shareholders, pending board approval. This distribution is projected to be around $2.35 per share, constituting 30% of OBDC II’s net asset value as of the end of 2025. This distribution not only serves as a significant benefit but also marks a pivotal liquidity event for shareholders, further reiterating the firm's commitment to delivering shareholder value.
Furthermore, the capital achieved from these asset sales will also aid OTIC and OBDC in reducing existing debt obligations, creating healthier balance sheets and the flexibility to invest in a favorable direct lending market moving forward. As evidenced by the transaction details, OTIC anticipates that post-sale, it will hold cash and undrawn debt capacity exceeding $1.6 billion, along with liquid loans, providing them a robust platform to seize attractive investment opportunities.
Kroll, LLC, an established advisory firm, has provided fairness opinions to ensure the transaction’s alignments with market expectations while maintaining governance standards across the boards of the respective Blue Owl BDCs. This transaction is slated for settlement in the first quarter of 2026, marking the fruitful culmination of ongoing efforts to manage the funds’ portfolios with an eye on maximizing returns and strategically orchestrating liquidity events.
In conjunction with this announcement, OBDC II is also committing to maintaining a consistent distribution of $0.0533 per share for the months of February and March, consistent with prior disbursements, ultimately leading to a cumulative distribution of $6.14 per share since the firm's inception.
This approach indicates the board's shift towards prioritizing liquidity through quarterly capital distributions, aiming to replace earlier focused tender offers and ensure a steady return flow to its shareholders. In the grand scheme, Blue Owl Capital continues to position itself as a pivotal player within the middle-market lending sector, backed by a robust strategy and a commitment to enhancing shareholder value through smart financial maneuvers.
Topics Financial Services & Investing）
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