Blue Owl Technology Finance (OTF) Investor Update summary

Listing announcement and background

• Shares will list on NYSE under ticker OTF on or about June 12, 2025, with no new primary capital raised and an initial float of 23.3 million shares, representing 5% of total shares outstanding.

• Net assets total $7.9 billion ($17.09 per share) as of March 31, 2025, with a 100% lock-up except 5% of each investor’s position released at listing; remaining shares released in three tranches over 12 months.

• Board declared a $0.35 per share Q2 dividend and five special $0.05 dividends to be paid quarterly starting Q3 2025.

• $200 million share repurchase program authorized, effective for 18 months post-listing.

• Listing aims to enhance liquidity, provide attractive risk-adjusted returns, and marks a key milestone in the fund’s evolution.

Portfolio strategy and positioning

• Focuses on upper-middle-market technology direct lending, primarily to large, stable, sponsor-backed software companies, with 81% in senior secured loans and 97% in floating rate debt.

• Portfolio totals $12.1 billion across 181 companies, diversified by end market and industry, with less than 0.1% of investments on non-accrual and 92% rated 1 or 2 internally.

• Investments target sectors like healthcare, education, and financial services, avoiding cyclical industries; software investments prioritized for recurring revenue and resilience.

• Average portfolio company converts 80–90% of EBITDA to cash, supporting stable free cash flow.

• Selective use of PIK structures and preferred equity investments to enhance returns and attract high-quality borrowers.

Performance, credit quality, and financial profile

• Since inception, $32 billion deployed with excellent credit quality, net gains, and only two non-accruals in operating history.

• Net investment income per share was $0.41 in Q1 2025; net asset value per share stable at $17.09.

• Annualized ROE on net investment income at 9.7% for Q1 2025; total return since inception is 61%, with 16%+ NAV growth.

• Debt to equity at 0.53x, below the target range, with $4.0 billion in liquidity and a well-laddered maturity profile.

• OTF merged with OTF2, creating the largest technology-focused BDC and improving scale and ROEs.