Blue Owl BDCs Complete Share Repurchases Totaling More Than $1.5 Billion
Amid elevated redemption activity across the non-traded business development company sector, two non-traded BDCs managed by Blue Owl Capital – Blue Owl Credit Income Corp. and Blue Owl Technology Income Corp. – fulfilled unusually significant fourth quarter tender offers.
The tender activity follows a broader surge in investor redemption requests among larger net asset value BDCs, with fourth-quarter redemptions rising more than 200% from the prior quarter, according to an analysis by investment banking firm Robert A. Stanger & Company Inc.
Blue Owl Credit Income Corp., or OCIC, reported that its most recent quarterly share repurchase offer was significantly oversubscribed. Originally targeting a maximum buyback of approximately $966.45 million – representing 5% of its aggregate net asset value as of Sept. 30, 2025 – the firm ultimately accepted a higher volume of tenders through Dec. 31, satisfying 100% of repurchase requests. The total repurchase value was approximately $1.01 billion, with the aggregate purchase representing 5.2% of the company’s aggregate shares as of Sept. 30. The final redemption amount reflects a 217% increase compared with the company’s tender offer at the end of the third quarter in 2025.
Operating in parallel, Blue Owl Technology Income Corp., or OTIC, completed an even larger proportional repurchase of its outstanding equity. The BDC redeemed $527.2 million of shares through Jan. 8, 2026, satisfying 100% of repurchase requests, representing 15.4% of the company’s aggregate shares outstanding as of Sept. 30. Originally targeting a buyback representing 5% of its aggregate NAV, OTIC subsequently increased the offer to approximately 19% of its outstanding shares. The final redemption amount reflects a 484% increase compared to the company’s Q3 2025 tender offer.
Both companies followed a standardized fulfillment process for the accepted tenders. Payments were issued promptly in the form of non-interest bearing promissory notes. These notes are currently being held by the companies’ transfer agent, DST Systems Inc., on behalf of the participating shareholders.
In an end-of-year letter to shareholders, OCIC leadership highlighted that its Class I shares generated a 2025 calendar-year return of 7.9%, bringing annualized inception-to-date return to 9.7%, as of Dec. 31. Since inception, OCIC Class I has “outperformed leveraged loans by 3.3%, high yield bonds by 5.1%, and traditional fixed income by 9.3%.”
As of the end of 2025, OCIC’s debt investment par value was $34.2 billion, diversified across 352 companies and 30 end markets, with 92% backed by private equity sponsors. Underlying borrowers were noted to be predominantly large, market-leading businesses, averaging $1.2 billion in revenue and $296 million in earnings before interest, taxes, depreciation, and amortization. OCIC is structured with 93% senior secured loans and 40% loan-to-value. Full-year 2025 inflows were approximately $6.9 billion, bringing total inflows to $21.5 billion since inception in 2021. During Q4 2025, the company continued to see robust flows totaling $1.4 billion, marking its 18th consecutive quarter of net inflows.
In OTIC’s end-of-year letter, leadership emphasized the company’s “attractive returns for investors since its inception in May 2022.” In 2025, OTIC Class I generated a calendar year return of 9%, bringing annualized inception-to-date returns to 10.8%. Since inception, OTIC Class I has outperformed leveraged loans by 2.5%, high-yield bonds by 3.5%, and traditional fixed income by 8.2%. According to the BDC, OTIC Class I’s NAV has appreciated by nearly 4% since its initial NAV as of May 31, 2022, “underscoring the durability of the portfolio and its ability to deliver attractive results across market environments.”
As of the end of 2025, OTIC’s debt investment par value was $5.9 billion, diversified across 174 companies and 39 end markets, with 92% backed by private equity sponsors. Underlying borrowers were categorized as “predominantly large, market leading software businesses that deliver mission-critical, recurring revenue solutions,” averaging $1.2 billion in revenue and $388 million in earnings before interest, taxes, depreciation, and amortization. OTIC is structured with 93% senior secured loans and 33% loan-to-value. As of Dec. 31, including the tender result, OTIC has $1.4 billion across cash, available borrowing capacity, and broadly syndicated loans.
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