Blue Owl Technology Finance Corp. · NYSE:OTF

Blue Owl Technology Finance — Q2 2025 Earnings Presentation

44 slides from Blue Owl Technology Finance's earnings presentation, Aug 7, 2025

  1. Slide 1: Blue Owl Technology Finance Corp. (NYSE: OTF)

    Blue Owl Technology Finance Corp. (NYSE: OTF) August 2025 Highly Confidential. Trade Secret.

  2. Slide 2: Largest technology-focused BDC by total assets

    Blue Owl Technology Finance Corp. (NYSE: OTF) Largest technology-focused BDC by total assets Investment Approach OTF Highlights • Primarily focused on making debt and equity investments in U.S. PORTFOLIO $12.7 billion across 184 portfolio upper middle-market technology-related companies, with a stra

  3. Slide 3: OTF: A Compelling Investment Opportunity

    OTF: A Compelling Investment Opportunity Blue Owl’s leading Credit platform provides OTF with significant benefits: • Broad origination capabilities and sector expertise in technology supported by deeply experienced team Blue Owl: Proven • Robust sourcing pipeline driven by extensive network of spon

  4. Slide 4: Managed by Blue Owl, a Leading Global Alternative Asset Manager

    Managed by Blue Owl, a Leading Global Alternative Asset Manager

  5. Slide 5: Managed by Blue Owl, A Leading Alternative Asset Manager

    Managed by Blue Owl, A Leading Alternative Firm Overview Asset Manager • Blue Owl offers investors differentiated investment opportunities that aim to Blue Owl’s scale and size deliver strong performance, risk- provide private companies with adjusted returns and capital investment solutions to help

  6. Slide 6: Blue Owl Manages a Market Leading Credit Business

    Blue Owl Manages a Market Leading Credit Business BDCs make up more than half of Blue Owl’s Credit platform AUM and diversified lending represents a meaningful segment of that AUM Our Credit Business Today - $146bn AUM Diversified Technology First Lien Opportunistic Alternative Investment Liquid Cre

  7. Slide 7: Blue Owl's Scale and Adjacent Credit Strategies Can Drive Attractive Origination Opportunities

    Blue Owl’s Scale and Adjacent Credit Strategies Can Drive Attractive Origination Opportunities and Significant Deal Flow • Real Assets – Triple Net Lease Broader • Real Assets – Data Centers Blue Owl Platform • GP Strategic Capital • Alternative Credit Adjacent Credit • Liquid Credit • First Lien Le

  8. Slide 8: Why Sponsors and Companies Like To Work With Blue Owl

    Why Sponsors and Companies Like To Work With Blue Owl Our team, scale and approach are competitive advantages in our ability to partner with high-quality sponsors and select the deals we want at the terms we like Why do sponsors like working with Blue Owl? Team Team Team Scale Approach • Deeply expe

  9. Slide 9: Blue Owl's Unique and Market-Leading Technology Strategy

    Blue Owl’s Unique and Market- Leading Technology Strategy

  10. Slide 10: Blue Owl Technology Lending by the Numbers

    Blue Owl Technology Lending by the Numbers Experienced Investors with Deep Domain Expertise 125 35+ 2 2018 Investment Technology-Focused Offices in New York and Blue Owl Technology Professionals Investors Menlo Park Strategy Inception Dedicated Pools of Permanent Capital Robust Originations, Selecti

  11. Slide 11: Blue Owl Technology Strategy Overview

    Blue Owl Technology Strategy Overview Prudent approach to portfolio construction and management while generating consistent returns • Maximize total return by generating current income from debt investments and other income Investment producing securities, and capital appreciation from our equity an

  12. Slide 12: The Technology Investing Opportunity Overview

    The Technology Investing Opportunity Overview A largely untapped investment opportunity with meaningful long-term tailwinds Select technology sub-sectors include Blue Owl’s Focus IT Services Hardware Devices Semiconductors Software Software represents Blue Owl’s highest conviction area for investmen

  13. Slide 13: Software Is Ubiquitous

    Software Is Ubiquitous Several factors contribute to a growing opportunity set …Drives Significant Value in the Secular Digitalization Trend… Broader Technology Sector Software is a $1T+ market that has grown at a 15% CAGR since 2015 Software underpins much of the value of the broader IT space Globa

  14. Slide 14: Technology and Software Debt Has Been Historically Resilient Across Multiple Cycles

    Technology and Software Debt Has Been Historically Resilient Across Multiple Cycles Software is … Cumulative Share of Defaults by Industry1 (Since 1998) a stable sector with low correlation with 4.9% economic cycles fundamental to business operations during recessions, recoveries and expansion 2.6%

  15. Slide 15: Where Blue Owl Technology Lives

    Where Blue Owl Technology Lives Blue Owl invests in established companies with proven track records, attractive cash flow dynamics and favorable attributes Stages of Technology Investing Blue Owl’s Focus Series Series C C and and Post-IPO or or Seed Seed Stage Stage Series SeriesAA Series B Series P

  16. Slide 16: Software Is Not A Sector: Underlying Exposure Diversified Across End User Industries

    Software Is Not A Sector: Underlying Exposure Diversified Across End User Industries Software investing can span a wide range of products and end markets with uncorrelated business drivers Horizontal Software Serving Multiple Sectors Cyber Security Application Software Systems Software Construction

  17. Slide 17: What Do We Look For In Our Technology Investments?

    What Do We Look For In Our Technology Investments? Defensively Positioned Market-Leaders in Sector Attractive Credit Profiles    Recession Market Leader in Strong Free Cash Resilience Attractive Verticals Flow Potential (At Scale) Mission-criticality increases Sustainable, scaled leadership reces

  18. Slide 18: A Leading Software BDC: Blue Owl Technology Finance Corp.

    A Leading Software BDC: Blue Owl Technology Finance Corp.

  19. Slide 19: Largest Technology-Focused BDC

    Largest Technology-Focused BDC1 o Largest technology-focused BDC1: $8.0bn in net assets and $12.7bn in investments across 184 portfolio companies Access to a Scaled and o Significant portfolio diversification: average position size of 0.5% Highly Diversified o Larger borrowers: we primarily focus on

  20. Slide 20: OTF at a Glance

    OTF at a Glance Scaled portfolio of technology and software investments diversified by borrower and end-market Scaled and Senior Secured Focused Portfolio Well-Diversified with High-Quality Borrowers $12.7B 184 81% 37 <0.1% 92% 0.5% 2.0x Portfolio Portfolio Senior Portfolio Non-Accruals at Internal

  21. Slide 21: Portfolio Construction: How OTF Approaches Asset Mix

    Portfolio Construction: How OTF Approaches Asset Mix OTF focuses on senior secured investments while opportunistically investing in other parts of the capital structure Current Portfolio Mix Target Portfolio Mix <1% 2-5% 10-15% 19% 81% ~85% Senior Secured Senior Secured Unsecured, Preferred Equity,

  22. Slide 22: Flexible and Well-Diversified Financing Structure

    Flexible and Well-Diversified Financing Structure Funding Mix ($ in millions) Debt Maturities (Committed, $ in millions) $8,232 $3.5bn Committed $3,975 Total Liquidity2 $700 $2,750 $4,810 $700 Outstanding $732 $2,207 $2,750 $2,175 $732 $2,575 $732 $650 $725 $2,575 $1,475 $375 $300 $963 $650 $725 $36

  23. Slide 23: Attractive Total Returns

    Attractive Total Returns OTF has delivered compelling returns since inception, with net credit gains that are underpinned by strong portfolio quality NAV and Cumulative Dividends Paid Since OTF Inception $24.11 $23.68 $23.34 $22.87 $22.26 $22.30 $21.82 $21.33 $21.06 $20.51 $20.05 $19.95 $20.04 $6.94

  24. Slide 24: Opportunities to Optimize OTF and Expand Return on Equity

    Opportunities to Optimize OTF and Expand Return on Equity 1 Increased Leverage 2 Asset Yield Optimization • OTF is levered at 0.58x net debt-to-equity, • Potential for incremental accretion from below our target range of 0.90x – 1.25x optimization of portfolio mix over time through selectively incre

  25. Slide 25: OTF is Well-Positioned to Deliver for Investors

    OTF is Well-Positioned to Deliver for Investors Focus on downside Market leader in protection through technology direct primarily senior OTF Highlights lending with secured portfolio Largest software-focused ability to lead BDC by total assets transactions 81% senior secured, first-lien focused Stab

  26. Slide 26: OTF Financial Highlights

    OTF Financial Highlights

  27. Slide 27: Review of Q2 2025

    Review of Q2 2025 • Net asset value per share of $17.17, up from $17.09 as of 3/31/2025 • Adjusted net investment income per share of $0.361, down from $0.411 as of 3/31/2025 • GAAP net investment income per share of $0.34 Earnings Summary • Adjusted net income per share of $0.451, up from $0.331 as

  28. Slide 28: 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 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net Investment Income Per Share $0.49 $0.44 $0.41 $0.41 $0.34 Adjusted Net In

  29. Slide 29: Net Asset Value Per Share Bridge

    Net Asset Value Per Share Bridge $0.36 ($0.01) $0.09 $17.17 $17.09 ($0.35) Q1'25 Q2'25 Q2’25 Q2'25 Q2'25 Q2'25 NAV Per Share Adjusted Net Investment Income Change in Accrued Capital Gains Regular Realized & Change NAV Per Share Per Share 1 Incentive Fee Dividend in Unrealized Per Share Per Share Gai

  30. Slide 30: Portfolio Highlights - Selected Metrics

    Portfolio Highlights - Selected Metrics As of (Dollar amounts in thousands) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Investments at Fair Value $6,157,709 $6,396,848 $6,407,466 $12,070,858 $12,728,642 Number of Portfolio Companies 141 146 148 181 184 Average Inv

  31. Slide 31: Portfolio Highlights – New Portfolio Activity

    Portfolio Highlights – New Portfolio Activity For Three Months Ended (Dollar amounts in thousands) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Investment Activity at Par: New Investment Commitments (Net of Sell Downs) $1,107,301 $630,789 $572,022 $819,603 $1,473,0

  32. Slide 32: Portfolio Highlights – Internal Portfolio Ratings

    Portfolio Highlights – Internal Portfolio Ratings As of June 30, 2025, non-accrual investments as a percentage of total debt investments were 0.2% and <0.1% at cost and fair value, respectively. As of June 30, 2025, there was 1 portfolio company on non-accrual. (Dollar amounts in thousands) ​Interna

  33. Slide 33: Appendix

    Appendix

  34. Slide 34: Key Dates

    Key Dates Regular Dividends Declared Declaration date Record date Payment date Amount per share 8/5/2025 9/30/2025 10/15/2025 $0.35 Special Dividends Declared in Conjunction With Listing Declaration date Record date Payment date Amount per share 6/2/2025 9/22/2025 10/7/2025 $0.05 6/2/2025 12/23/2025

  35. Slide 35: Strong Dividend Profile

    Strong Dividend Profile * Dividend policy maximizes distributions to shareholders and provides visibility for several quarters Historical Dividend Yield on NAV Future Dividend Yield on NAV1 Before Listing: Floating rate dividend policy Current $0.35/share regular dividend plus (~90% of taxable incom

  36. Slide 36: Portfolio Strategy: Recurring Revenue Loans

    Portfolio Strategy: Recurring Revenue Loans Over the last few years, recurring revenue lending has gradually become a meaningful part of the direct lending market, driven by strong deal activity in the software space • A loan made to a company that may not be currently EBITDA positive Frequently Ask

  37. Slide 37: Portfolio Strategy: Preferred Equity

    Portfolio Strategy: Preferred Equity Majority of OTF’s preferred equity investments are to large companies focused on downside protection of invested capital Flexible Structures Downside Protection • Investment structures and terms that • Structural protections and strong meet the specific needs of

  38. Slide 38: Portfolio Strategy: Payment-in-Kind ("PIK")

    Portfolio Strategy: Payment-in-Kind (“PIK”) Blue Owl’s selective PIK strategy supports strong borrowers and shareholder returns PIK Characteristics Why Does Blue Owl Structure Types of Companies Blue Owl How Does Blue Owl Structure PIK at Origination? Will Offer PIK to at Origination PIK at Originat

  39. Slide 39: Endnotes (1 of 3)

    Endnotes (1 of 3) Note: Figures are as of the quarter-ended 6/30/2025 at fair value unless otherwise noted. Past performance is not a guarantee of future results. Page 2: Blue Owl Technology Finance Corp. (“OTF”) 1. Average of the annual net realized gain/loss rates since inception (where the annual

  40. Slide 40: Endnotes (2 of 3)

    Endnotes (2 of 3) Page 19: Largest Technology-Focused BDC 1. By total assets. 2. Borrower financials are as of the latest available, typically a quarter in arrears. Excludes certain investments that fall outside of our typical borrower profile. 3. Across the Blue Owl Credit platform. 4. Cyclical nam

  41. Slide 41: Endnotes (3 of 3)

    Endnotes (3 of 3) Page 28: Financial Highlights 1. Please see non-GAAP disclosures on page 42 for reconciliations. 2. Based on period end shares. 3. Dividend amount based on shares outstanding as of record date. 4. Net of debt issuance costs. 5. Net of cash. 6. Annualized quarterly net investment in

  42. Slide 42: Non-GAAP Disclosures

    Non-GAAP Disclosures On a supplemental basis, the Company is disclosing certain adjusted financial measures, each of which is calculated and presented on a basis of methodology other than in accordance with GAAP (“non-GAAP”). The Company's management utilizes these non-GAAP financial measures to int

  43. Slide 43: Disclaimer

    Disclaimer 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 Credit manages and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; and (iii) uncalled

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