Blue Owl Capital Corporation · NYSE:OBDC
Blue Owl Capital — Owl Rock Capital — Investor Presentation (August 2021)
26 slides from Blue Owl Capital's investor presentation, August 2021
Slide 1: Owl Rock Capital Corporation
Owl Rock Capital Corporation August 2021 NYSE: ORCC
Slide 2: Overview of Owl Rock, a Division of Blue Owl
Overview of Owl Rock, a Division of Blue Owl Premier platform focused on lending to upper middle-market companies Market Leader with Significant Scale Owl Rock Capital Group (“Owl Rock”) has combined with Dyal Capital Partners to form Blue Owl Capital Inc., a publicly traded alternative asset manage
Slide 3: Platform Breakdown
Platform Breakdown Complementary verticals that leverage existing origination and underwriting functions $31.2 Billion Assets Under Management Diversified Technology First Lien Opportunistic Lending Lending Lending Lending ORCC, ORCC II, ORCC III, ORCIC, Funds Owl Rock Diversified Lending Owl Rock T
Slide 4: Overview of Owl Rock Capital Corporation (ORCC)
Overview of Owl Rock Capital Corporation (ORCC) Publicly traded specialty finance company focused on lending to upper middle-market companies #3 Public Market Player1 Well-positioned in Current Environment Dividend Yield Credit Ratings Market Cap1 Leverage3 Liquidity (Based on NAV)2 Profile 1.00x $2
Slide 5: Differentiated Positioning in Direct Lending
Differentiated Positioning in Direct Lending • Scaled direct lending business with $11.9bn portfolio • Large pool of capital - ability to lead or anchor debt financings of $200mm − $600mm across platform Lender of Choice for • Founded and led by industry veterans, each with over 25 years of experien
Slide 6: Review of 2Q 2021
Review of 2Q 2021 • Net asset value per share of $14.90, up from $14.82 as of 3/31/21 • Net investment income per share of $0.30, up from $0.26 as of 3/31/21 Earnings • Net income per share of $0.38, down from $0.40 as of 3/31/21 Summary • 2Q’21 dividend per share of $0.31 • 2Q’21 dividend yield of
Slide 7: Our Keys to Strong Performance
Our Keys to Strong Performance Results reflect our proactive and intentional focus building the portfolio • “Go to” call given close relationship with sponsors and our large pool of capital • Staying power of upper middle-market businesses • Resiliency of current core sectors (Internet Software & Se
Slide 8: Our Approach to Building the Portfolio
Our Approach to Building the Portfolio • Focus on upper middle-market companies with stable, recession-resistant business models, and low loan-to-value ratios • Emphasize diversification among portfolio companies and industries • Target 1-3% position sizes, top 10 investments currently 19% of our to
Slide 9: Strength of Strategy Demonstrated in Performance Through COVID-19 Crisis
Strength of Strategy Demonstrated in Performance Through COVID-19 Crisis Since 2016, ORCC has deployed $18bn of capital across 181 borrowers and realized only $224mm in loss of principal, representing an annual loss rate of less than 20 bps1 Only 2 portfolio companies on non-accrual 93% of debt inve
Slide 10: Portfolio Highlights
Portfolio Highlights Conservative Portfolio Credit Metrics1 $106MM 5.9x Portfolio Company Portfolio Company EBITDA Leverage2 Focused on Upper Middle Market Companies and Conservative Credit Metrics Senior Secured and Focused on Top of the Capital Structure Broadly Diversified Across Industries 1.6%
Slide 11: Portfolio Highlights – Originations
Portfolio Highlights – Originations (Dollar amounts in millions) Originations and Net Funds Growth1 • New investment commitments and fundings totaled $1,578.1 and $1,405.6 respectively, for the quarter. The commitments were distributed across 34 investments in 28 portfolio companies, 16 of which wer
Slide 12: Portfolio Highlights – Performance
Portfolio Highlights – Performance Disciplined and defensive investment style Historical Internal Investment Ratings • Portfolio performance remains strong, with 90% of companies rated 1 or 2 at 6/30/21 11% 10% 12% 13% • 2 investments on non-accrual as of 6/30/21, which represent an aggregate fair v
Slide 13: Our Approach to Portfolio Management
Our Approach to Portfolio Management • Fully integrated portfolio management function • Dedicated hands-on approach, with state-of-art portfolio tracking tools and systematic communication • Regular and proactive dialogue with borrowers and sponsors • Full team approach, with strong oversight by sen
Slide 14: Liquidity, Funding Profile and Other Updates
Liquidity, Funding Profile and Other Updates NYSE: ORCC
Slide 15: Conservative Balance Sheet & Attractive Funding Profile
Conservative Balance Sheet & Attractive Funding Profile Significant Liquidity and Diverse Funding Profile • Debt-to-equity of 1.00x1 • $2.2 billion of cash and undrawn debt • $0.9 billion in undrawn commitments to portfolio companies, of which $0.6 billion are revolving credit facilities • Ability t
Slide 16: All Rating Agencies Continue to Reaffirm ORCC’s Rating and Outlook
All 4 Rating Agencies Continue to Reaffirm ORCC’s Rating and Outlook Rating BBB- BBB- BBB- BBB Outlook Stable Stable Stable Stable (Date Affirmed) (February 2021) (April 2021) (August 2021) (November 2020) Date Rating April 2018 May 2018 May 2018 February 2018 Established “We view the company's fund
Slide 17: Diverse Access To Financing With Well Laddered Maturities
Diverse Access To Financing With Well Laddered Maturities Aggregate Principal Principal Amount Committed Amount Maturity / Outstanding Outstanding Interest Rate Date Debt Maturities1,2 ($mm) Secured Revolver $1,455 million $397 million LIBOR + 200 09/03/251 SPV Asset Facility 2 $350 million $100 mil
Slide 18: Financial Highlights
Financial Highlights (Dollar amounts in thousands, except per share data; per share data is based on weighted average shares outstanding during the period, except as otherwise noted) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Net investment income per share $0.34 $0.33 $0.29 $0.26 $0.30 Net realized an
Slide 19: Distribution Information
Distribution Information Estimated Dividend Yield1,2 11.1% 10.7% 10.6% 10.6% 8.7% 9.2% Regular Dividend $0.08 ✓ $0.08 ✓ $0.08 ✓ $0.08 ✓ 8.4% 8.3% 8.3% $0.02 ✓ $0.04 ✓ Special Dividend ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Approved by $0.31 ✓ $0.31 ✓ $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 Board of Directors 3Q'19 4Q'19
Slide 20: Owl Rock Direct Lending ESG Framework
Owl Rock Direct Lending ESG Framework NYSE: ORCC
Slide 21: ESG Is Embedded in Our Investment Process
ESG Is Embedded in Our Investment Process Initial Screening • Initial screening of company and business activity to filter out opportunities with material ESG risk • Intentionally partner with high-quality sponsors with established ESG policies and practices Pre-Investment Due Diligence • Deal Previ
Slide 22: ESG Areas of Focus & Internal Standards
ESG Areas of Focus & Internal Standards We have identified key areas within ESG where we believe we can maximize our impact. Below is an illustrative (though not exhaustive) list of ESG topics that inform our investment process: Owl Rock deal teams leverage materials provided by the Sustainability A
Slide 23: What Differentiates Owl Rock
What Differentiates Owl Rock Diversified portfolio designed for our large, institutional investor base – focused on quality and consistency The right pool of capital to be the partner of choice for borrowers – offers flexibility & ability to commit and hold large investments Large team of experience
Slide 24: Important Information
Important Information Past performance is not a guide to future results and is not indicative of expected realized returns. Assets Under Management (“AUM”) refers to the assets that the Owl Rock manages and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; a
Slide 25: Important Information (Continued)
Important Information (Continued) All investments are subject to risk, including the loss of the principal amount invested. These risks may include limited operating history, uncertain distributions, inconsistent valuation of the portfolio, changing interest rates, leveraging of assets, reliance on
Slide 26: For questions please contact ORCC Investor Relations
For questions please contact ORCC Investor Relations: ORCCIR@blueowl.com 212 651 4705 www.OwlRockCapitalCorporation.com NYSE: ORCC
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