Blue Owl BDC Declares Q2 Capital Distribution, Bringing 2026 Shareholder Returns to 35% of NAV
Blue Owl Capital Corporation II, or OBDC II, has returned 35% of its net asset value to shareholders in the first months of 2026, most recently through a second quarter capital distribution of $0.42 per share.
The $0.42 amount is funded by proceeds from ordinary-course portfolio repayment activity and represents 5% of NAV, as of Dec. 31, 2025. The distribution will be paid on or before April 21, 2026, to shareholders of record as of April 20.
This payment follows a $2.50 per share special distribution paid on March 26, which alone represented 30% of the company’s NAV as of year-end 2025.
Combined, these distributions total $2.92 per share. OBDC II, a nontraded business development company focused on lending to U.S. middle-market companies, has shifted toward prioritizing quarterly distributions of 5% or more over traditional tender offers as its primary liquidity mechanism.
Jonathan Lamm, chief operating officer and chief financial officer, said in a letter to shareholders: “This second return of capital distribution further underscores the company’s commitment to its previously announced strategy … to provide meaningful shareholder liquidity from ordinary-course portfolio repayment activity.”
While the return of capital distributions are funded by portfolio repayments, the company continues to provide investors with regular income from ongoing earnings. Alongside the special distribution, the board declared a regular monthly cash dividend of $0.035 per share for April.
Based on the implied NAV of $8.40, this monthly dividend represents an annualized yield of approximately 7.4%.
Earlier this year, the BDC’s board formally recommended that shareholders reject an unsolicited tender offer from Saba Capital Management and Cox Capital Partners, calling the bid inadequate and arguing it would deprive investors of a near-term capital distribution and future portfolio returns. The board argued that the tender offer is designed to strip shareholders of this upcoming cash payment and future distributions.
The company said it is already executing a plan to return capital to investors, with total payments expected to equal 50% or more of net assets in 2026.
The capital return plan follows a previously announced asset sale in February. At the time, the BDC said it would remain diversified with adequate liquidity, holding approximately $447 million in cash and undrawn debt capacity and carrying a net debt-to-equity ratio of 0.52x.
As of the end of 2025, OBDC II’s portfolio included investments in 183 middle-market companies with an aggregate fair value of $1.6 billion. The fund is externally managed by Blue Owl Credit Advisors LLC.
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