Blue Owl Technology Finance Corp.

Overview

Blue Owl Technology Finance Corp. is a Maryland corporation formed July 12, 2018. The Company listed on the NYSE on June 12, 2025, under the ticker OTF. It is externally managed by Blue Owl Technology Credit Advisors LLC, an affiliate of Blue Owl Capital Inc.

Regulation and structure

• Regulated as a Business Development Company (BDC) under the Investment Company Act of 1940 and treated as a Regulated Investment Company (RIC) for U.S. federal tax purposes.
• The Adviser and its affiliates perform day-to-day operations, investment management, and administration under an Investment Advisory Agreement and an Administration Agreement.
• The Company has no employees; services are provided by the Adviser and its affiliates.

Investment objective and focus

• Objective: maximize total return through current income from debt investments and other income-producing securities, plus capital appreciation from equity and equity-linked investments.
• Core focus: investments in technology-related companies, primarily in the United States.
• Policy: at least 80% of total assets are invested in “technology-related” companies, broadly defined to include direct technology operations, tech-enabled businesses, and companies growing through technological advancements.

Capital sources and leverage

• Leverage is permitted under the 1940 Act; the target leverage range is 0.90x–1.25x.
• Asset coverage target: 150% under modified 1940 Act rules; reported asset coverage was 226% as of 12/31/2025 (versus 220% as of 12/31/2024).
• Financing facilities include a revolving credit facility, senior secured credit facilities, special purpose vehicle facilities, unsecured notes, and collateralized loan obligation (CLO) transactions.
• Outstanding debt and senior securities are subject to asset coverage testing before distributions or certain actions.

Portfolio (as of December 31, 2025)

• 199 portfolio companies with an aggregate fair value of $14.3 billion.
• Portfolio diversified across 39 industries; largest sector by fair value: Systems Software (17.9%).
• Portfolio composition by fair value:
  • First-lien senior secured debt: 76.8%
  • Second-lien senior secured debt: 4.0%
  • Unsecured debt: 3.3%
  • Specialty finance debt: 0.3%
  • Preferred equity: 7.5%
  • Common equity: 5.1%
  • Specialty finance equity: 2.6%
  • Joint ventures: 0.4%
• Floating-rate exposure: 96.2% of debt investments bear floating rates (subject to floors).

Investment sourcing and management

• Sourcing primarily through Blue Owl’s network and origination capabilities, with emphasis on direct lending to technology companies in enterprise software, systems/software, fintech/payments software, and related tech services.
• Investment team: approximately 130 investment professionals, with over 40 dedicated to technology investing.
• Investment process emphasizes downside protection, covenant protections, and ongoing monitoring. Portfolio management includes workout specialists and regular monthly and quarterly reviews.

Portfolio economics and investment types

• Debt investments constitute the majority of assets, with a smaller allocation to equity and equity-linked opportunities.
• Debt strategies include first-lien loans (standalone first-lien and unitranche/“last out” structures), second-lien debt, mezzanine (often unsecured), and broadly syndicated loans (including covenant-lite loans).
• Equity positions may include common stock, preferred stock, warrants, and equity-linked instruments, typically minority positions with protections for minority holders.
• ARR (annualized recurring revenue) loans are a targeted debt instrument for high-growth technology companies with strong revenue visibility.
• The portfolio also includes specialty financing and joint venture structures (for example, Credit SLF and Blue Owl Leasing).

Tax and distributions

• As a RIC, the Company intends to distribute at least 90% of investment company taxable income and 90% of net tax-exempt income each year.
• The Company may be subject to a 4% excise tax if distribution requirements are not met.
• Dividend reinvestment plan in place: prior to the NYSE listing, reinvestment occurred at net asset value; following listing, reinvestment uses market price at the payment date, with certain pricing protections.

Governance and key relationships

• The Adviser and its affiliates provide investment advisory, management, and administrative services, and perform portfolio and risk management functions subject to Board oversight and compliance with the 1940 Act.
• The Adviser oversees co-investment arrangements under an exemptive order for affiliated investments. The Board, including a majority of independent directors, approves material advisory arrangements and continuations.

Sustainability and ESG

• Blue Owl maintains an ESG and responsible investing framework, including a Responsible Investing Working Group, policies, and a climate risk program. ESG considerations are integrated into investment analysis, with ongoing governance and disclosure initiatives.