Blue Owl Capital Corporation

What they do

OBDC was formed on October 15, 2015 in Maryland and elected to be regulated as a business development company. It primarily originates and invests in loans to U.S. middle-market companies, with a focus on institutionally-backed upper middle-market businesses generating more than $50 million of EBITDA annually, per the 10-K. Its portfolio at December 31, 2025 consisted of 73.1% first lien debt, 5.2% second-lien debt, 2.4% unsecured debt, 3.5% preferred equity, 3.9% common equity and 8.4% special financing equity based on fair value. It invests directly or through special purpose vehicles, specialty financing portfolio companies and joint ventures.

Revenue drivers

• First lien senior secured loans — Largest portfolio component at 73.1% of fair value as of December 31, 2025; generates current income through direct originations to middle-market borrowers.
• Floating-rate debt investments — 96.4% of debt investments based on fair value were floating rate and subject to interest rate floors as of December 31, 2025, tying income to base rates.
• Second lien, unsecured and mezzanine debt — Second-lien was 5.2% and unsecured 2.4% of fair value at December 31, 2025; higher-yielding positions within the target credit portfolio.
• Equity and special financing investments — Preferred equity 3.5%, common equity 3.9% and special financing equity 8.4% of fair value at December 31, 2025, held partly through specialty financing companies and joint ventures (2.5%).

Recent performance

For the second quarter of 2026, GAAP net investment income per share was $0.36, compared with $0.32 in the prior quarter and $0.42 a year earlier, according to the August 5, 2026 earnings release. Adjusted NII per share was $0.34 versus $0.31 in the prior quarter. Net realized and unrealized losses were $(0.22) per share, and NAV per share was $14.26, down from $14.41 at March 31, 2026, primarily reflecting markdowns on a small number of names. New investment commitments were $319 million and sales and repayments were $747 million in the quarter. Investments on non-accrual were 2.8% of the portfolio at cost and 0.8% at fair value, versus 2.0% and 1.0% at March 31, 2026.

Strategy

The company targets senior secured or unsecured loans, subordinated and mezzanine loans, broadly syndicated loans, and to a lesser extent equity and equity-related securities such as warrants and preferred stock. It seeks transactions sponsored by private equity and venture capital firms and aims for current income with capital preservation across credit cycles. Target credit investments typically mature in three to ten years and range from $20 million to $500 million. As of December 31, 2025 the portfolio held 234 companies across 30 industries, with internet software and services the largest industry at 11.1% of fair value. During Q2 2026 it amended and extended its revolving credit facility with all banking partners renewing commitments and issued $800 million of unsecured debt, and repurchased approximately $35 million of common stock.

Risks

• Portfolio company credit deterioration — Investments on non-accrual rose to 2.8% of the portfolio at cost at June 30, 2026 from 2.0% at March 31, 2026, and Q2 results included markdowns on a small number of names.
• Leverage and interest rate exposure — The company uses borrowed money to finance investments and most debt investments are floating rate, so interest rate volatility could adversely affect results, as the 10-K risk factors state.
• Illiquid, thinly traded investments — The 10-K cites risks related to the uncertainty of the value of portfolio investments, particularly those having no liquid trading market, so marks may not reflect realizable values.
• Reliance on external adviser and financing access — OBDC is externally managed by Blue Owl Credit Advisors LLC and depends on the Adviser to source and monitor investments, while a contraction of credit or inability to access capital markets could impair lending activity.

Outlook

CEO Craig W. Packer said portfolio company operating trends remained stable and credit performance tracked in line with expectations, and that with leverage at a two-year low and a strong liquidity profile the company has flexibility to deploy capital selectively. The Board declared a third quarter 2026 base dividend of $0.31 per share payable on or before October 15, 2026, plus a second quarter supplemental dividend of $0.02 per share payable on or before September 15, 2026. No numeric full-year guidance was provided in the release.