Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Owl Rock Core Income — Investor Presentation (April 2022)
26 slides from Blue Owl Capital's investor presentation, April 2022
Slide 1: Owl Rock Core Income Corp.
Owl Rock Core Income Corp. April 2022 This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. Only a prospectus for Owl Rock Core Income Corp. can make such an offer. This material is authorized only when it is accompanied or preceded by the Owl Rock C
Slide 2: Owl Rock Core Income Corp. Overview
Owl Rock | A Division of Blue Owl Owl Rock Core Income Corp. Overview Owl Rock Core Income Corp. (ORCIC) • Leverages Owl Rock’s leading direct lending platform to seek attractive current income and provide portfolio diversification • Invests alongside Owl Rock’s existing diversified direct lending f
Slide 3: About Owl Rock
Owl Rock | A Division of Blue Owl About Owl Rock Owl Rock is a leading direct lending platform managed by a seasoned executive team 25+ • Founders: Douglas Ostrover, Marc Lipschultz and Craig Packer Experience Each Co-Founder’s Years • Senior executive roles at GSO/Blackstone, KKR and Goldman Sachs
Slide 4: $51B+ Originated Since Inception: Owl Rock Is A Market Leader in Direct Lending
Owl Rock | A Division of Blue Owl Owl Rock Is A Market Leader in Direct Lending Owl Rock by the Numbers $51B+ 6,200+ ~600 80+ Originated Since Deals Reviewed Partnerships with Dedicated One Private Equity Investment Deal Funnel Inception Since Inception Sponsors Professionals Select Accolades1 2020
Slide 5: $39.2B In AUM Across Complementary Verticals
Owl Rock | A Division of Blue Owl $39.2B In AUM Across Complementary Verticals Owl Rock leverages existing origination & underwriting functions to provide solutions for borrowers Diversified Direct First Lien Technology Opportunistic Lending Lending Lending Lending AUM $25.8 billion $3.5 billion $7.
Slide 6: Investing in Today's Market is Challenging
Investing in Today’s Market is Challenging
Slide 7: Equity Valuations are Well Above Historical Averages
Owl Rock | A Division of Blue Owl Equity Valuations are Well Above Historical Averages S&P 500 Price Since June 2008 P/E Ratios Today Vs. 20-Year Averages 27.0x 4,750 4,500 25.0x 4,250 4,000 23.0x 3,750 3,500 21.0x 3,250 19.0x 3,000 2,750 17.0x 2,500 2,250 15.0x 2,000 1,750 13.0x 1,500 11.0x 1,250 1
Slide 8: Traditional Fixed Income Has Become Unreliable
Owl Rock | A Division of Blue Owl Traditional Fixed Income Has Become Unreliable Interest rates are at or near historic lows, making it difficult for investors to pursue their income goals Fixed Income Yields Today vs. 20 Years Ago 14.00% 12.46% 12.00% 10.00% 8.00% 6.37% 6.00% 5.60% 5.04% 4.52% 4.21
Slide 9: Direct Lending Has Been a Consistent Source of Income
Owl Rock | A Division of Blue Owl Direct Lending Has Been a Consistent Source of Income Cliffwater Direct Lending Index Performance Annual Total Returns Since Inception Annual Income Return Since Inception 20% 20% 16% 14% 14% 14% 13% 13% 13% 14% 12%12%12%13% 11% 12% 12% 11%11% 11%11%11% 10% 10% 10%
Slide 10: Direct Lending Investments May Help to Insulate Portfolios From Rising Rates
Owl Rock | A Division of Blue Owl Direct Lending Investments May Help to Insulate Portfolios From Rising Rates In comparison to the traditional suite of fixed income investments, floating rate notes may mitigate the impact of rising interest rates on a portfolio’s value. Illustrative Price Impact of
Slide 11: Why Owl Rock?
Why Owl Rock?
Slide 12: Competitive Advantages
Owl Rock | A Division of Blue Owl Competitive Advantages As an extension of Owl Rock’s leading direct lending platform, ORCIC may possess a number of advantages • Dedicated sponsor coverage model distinguishes Owl Rock from other lenders Distinct Sponsor • Relationship-oriented approach at all level
Slide 13: A Track Record of Delivering Returns
Owl Rock | A Division of Blue Owl A Track Record of Delivering Returns Similar Fund Level Performance Net Returns1 Inception Date 1 -Year 3-Year 5-Year Since Inception Owl Rock Capital Corporation2 March 2016 11.1% 9.2% 9.3% 9.3% Owl Rock Capital Corporation II3 April 2017 7.9% 7.6% N/A 8.6% Owl Roc
Slide 14: Deep Sponsor Relationships Drive Deal Flow
Owl Rock | A Division of Blue Owl Deep Sponsor Relationships Drive Deal Flow Owl Rock has generated deal flow from nearly 600 sponsors Select sponsors with whom we’ve transacted As of December 31, 2021. Sponsors shown for educational purposes only and represent some of the more recognizable names to
Slide 15: Strong Origination Activity and Disciplined Underwriting
Owl Rock | A Division of Blue Owl Strong Origination Activity and Disciplined Underwriting Robust pipeline with more than 6,200 deals reviewed since inception coupled with a rigorous screening process enables the team to pursue only the highest conviction investment opportunities Deals Sourcing andT
Slide 16: A History of Compelling Credit Performance
Owl Rock | A Division of Blue Owl A History of Compelling Credit Performance Since inception in March 2016, Owl Rock’s annual loss rate of approximately 0.05% has been significantly better than market averages Average Annual Loss Rates1,2 Owl Rock Credit Experience3 1.81% Over $46 Billion Capital De
Slide 17: Portfolio and Performance
Portfolio and Performance
Slide 18: ORCIC Portfolio Snapshot
Owl Rock | A Division of Blue Owl ORCIC Portfolio Snapshot Industry Diversification Breakdown by Asset Type <2% 14% 3% 3% 27% 11% 13% 4% 9% 80% 6% 6% 9% 7% 7% Healthcare providers and services Internet software and services First Lien Senior Secured Insurance Food and beverage Second Lien Senior Sec
Slide 19: ORCIC Performance
Owl Rock | A Division of Blue Owl ORCIC Performance Distribution Rate1 6.41% Class S Total Returns2 1-Month 3-Month YTD ITD Class S (With Max Sales Load) -3.18% -2.78% -2.78% 2.38% Class S (No Sales Load) 0.21% 0.62% 0.62% 5.97% As of March 31, 2022. Past performance is not a guarantee of future res
Slide 20: ORCIC Historical Distributions | Class S
Owl Rock | A Division of Blue Owl ORCIC Historical Distributions | Class S Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2022 Base $0.0558 $0.0558 $0.0558 $0.0558 Distribution 2022 Special - - Distribution 2021 Base - - $0.0515 $0.0515 $0.0515 $0.0515 $0.0515 $0.0515 $0.0515 $0.0515 $0.0515 $0.05
Slide 21: Select Case Studies
Owl Rock | A Division of Blue Owl Select Case Studies Parexel • Parexel is a global contract research • $3,600mm Credit Facilities organization (CRO) that assists pharmaceutical ($2,700mm 1st Lien Term Loan, $900mm companies manage and execute clinical trials 2nd Lien Term Loan) • In November 2021,
Slide 22: ORCIC Summary of Key Terms
Owl Rock | A Division of Blue Owl ORCIC Summary of Key Terms Perpetually non-traded business development company; ORCIC does not intend to seek a Structure liquidity event Fund Leverage Target 0.9x – 1.25x debt-to-equity with regulatory cap at 2.0x Management Fee 1.25% of net assets (no management f
Slide 23: ORCIC Risk Factors
ORCIC Risk Factors An investment in Owl Rock Core Income Corp. (“ORCIC”) is speculative and involves a high degree of risk, including the risk of a substantial loss of investment, as well as substantial fees and costs, all of which can impact an investor's return. The following are some of the risks
Slide 24: Important Information
Important Information Unless otherwise indicated, the Report Date referenced herein is December 31, 2021. 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 we manage and are generally equal
Slide 25: Important Information Continued
Important Information Continued Industry Accolades Accolades are independently determined and awarded by their respective publications. Accolades can be based on a variety of criteria including recognition by peers, demonstrated leadership, strategy innovation, deal making skills and more. Neither O
Slide 26: Owl Rock | A Division of Blue Owl
Owl Rock | A Division of Blue Owl AMPF-ORCIC-DECK-4-22
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