Blue Owl Capital Corporation · NYSE:OBDC
Blue Owl Capital — Q1 2025 Earnings Presentation
30 slides from Blue Owl Capital's earnings presentation, May 2025
Slide 1: Blue Owl Capital Corporation (NYSE: OBDC)
Blue Owl Capital Corporation (NYSE: OBDC) May 2025
Slide 2: Blue Owl Capital Corporation (NYSE: OBDC)
Blue Owl Capital Corporation (NYSE: OBDC) Second largest publicly traded business development company (BDC) by market capitalization Investment Approach OBDC Highlights • Primarily focused on senior secured loan solutions for U.S. middle PORTFOLIO $17.7 billion across 236 portfolio market companies
Slide 3: Managed by Blue Owl, A Leading Alternative Asset Manager
Managed by Blue Owl, A Leading Alternative Firm Overview Asset Manager • We offer investors differentiated Our scale and size provide private investment opportunities that aim to companies with investment solutions deliver strong performance, risk- adjusted returns and capital to help drive long-ter
Slide 4: Blue Owl Manages a Market Leading Credit Business
Blue Owl Manages a Market Leading Credit Business BDCs make up 58% of Blue Owl’s Credit platform AUM Our Credit Business Today - $139bn AUM Diversified Technology First Lien Opportunistic Alternative Investment Liquid Credit Other Lending Lending Lending Lending Credit Grade Credit Strategies9 Strat
Slide 5: Blue Owl's Scale and Adjacent Credit Strategies Drive 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
Slide 6: Why Sponsors and Companies Like To Work With Us
Why Sponsors and Companies Like To Work With Us 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 experience
Slide 7: Our Investment Philosophy
Our Investment Philosophy Regardless of the industry in which a borrower operates, we underwrite to a set of core attributes which are imperative to, and evidenced by, the strong credit quality of our portfolio • Strong customer retention and pricing power due to relative scale and importance within
Slide 8: OBDC Highlights
OBDC Highlights
Slide 9: Merger with OBDE Has Created the Second Largest Publicly Traded BDC
Merger with OBDE Has Created the Second Largest Publicly Traded BDC by Total Assets The merger with OBDE closed on January 13, 2025, which we anticipate will drive lower costs of funds and generate meaningful operational synergies moving forward Seamless portfolio integration and stronger combined p
Slide 10: Scaled and Senior Secured Focused Portfolio
Scaled and Senior Secured Focused Portfolio $17.7bn 82% $938mm $215mm ~90% Portfolio Company Portfolio Company Sponsor Backed Portfolio Size Senior Secured Revenue12 EBITDA12 Investments13 Assets By Type Portfolio Construction • Conservative portfolio with primarily first- Predominantly lien and uni
Slide 11: Well-Diversified Portfolio with High-Quality Borrowers
Well-Diversified Portfolio with High-Quality Borrowers Since inception, we have intentionally constructed OBDC’s portfolio to withstand economic cycles by focusing on non-cyclical, recession resistant businesses 236 30 0.4% 44% 1.7x Average Portfolio Net Loan-to- Interest Coverage Portfolio Companie
Slide 12: Diverse and Flexible Capital Structure
Diverse and Flexible Capital Structure Low-cost flexible funding sources allow us to invest across all market environments Funding Mix (Outstanding Basis) Debt Maturities (Committed Basis) $5,410 12% $1,000 $800 13% 50% 50% Unsecured $2,863 Borrowings $1,500 $1,475 $3,610 2,563 25% $1,125 $950 $642
Slide 13: Downside Protected Portfolio Drives Shareholder Value
Downside Protected Portfolio Drives Shareholder Value The scale and flexibility of our capital base allows us to capitalize on attractive risk-adjusted return opportunities for our investors and be a preferred solutions provider for our partners Top of the capital structure and floating rate 82% 97%
Slide 14: Opportunities to Optimize OBDC and Improve Return on Equity
Opportunities to Optimize OBDC and Improve Return on Equity 1 Cost Savings • Operational synergies totaling more than $5 million in year one through the elimination of expenses post-merger close Cost Savings from Merger from Merger • Longer-term cost savings through increased scale from merger 2 Enh
Slide 15: OBDC is Well-Positioned to Deliver for Investors
OBDC is Well-Positioned to Deliver for Investors The combined company will continue to benefit from the breadth and depth of Blue Owl’s BDC platform Focus on downside Market leader in protection through upper-middle primarily senior OBDC Highlights market direct secured portfolio Second largest publ
Slide 16: OBDC Financial Highlights
OBDC Financial Highlights
Slide 17: Review of Q1 2025
Review of Q1 2025 • Net asset value per share of $15.14, down from $15.26 as of 12/31/2024 • Adjusted net investment income per share of $0.3920 as of 3/31/2025 • GAAP net investment income per share of $0.41, down from $0.47 as of 12/31/2024 Earnings Summary • Adjusted net income per share of $0.32
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) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Investment Income Per Share $0.47 $0.48 $0.47 $0.47 $0.41 Adjusted Net In
Slide 19: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge $0.41 ($0.02) ($0.05) $0.08 $15.26 ($0.37) $15.14 ($0.15) Adjusted NII Per Share20: $0.39 Total Dividends: ($0.42) Adjusted Net Realized & Unrealized Gain20: ($0.07) Q4'24 Q1'25 Q1'25 Q4'24 Q1'25 Q1'25 Q1'25 Q1'25 NAV Per Share Net Investment Reversal of Supplemental
Slide 20: Portfolio Highlights - Selected Metrics
Portfolio Highlights - Selected Metrics As of March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 (Dollar amounts in thousands) Investments at Fair Value $12,414,384 $13,341,982 $13,447,536 $13,194,545 $17,692,006 Number of Portfolio Companies 198 212 219 227 236 Average
Slide 21: Portfolio Highlights – Quarterly Portfolio Activity
Portfolio Highlights – Quarterly Portfolio Activity For Three Months Ended (Dollar amounts in thousands) March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 Investment Activity at Par: New Investment Commitments (Net of Sell Downs)26 $1,202,698 $3,296,799 $1,151,667 $1,
Slide 22: Portfolio Highlights – Internal Portfolio Ratings
Portfolio Highlights – Internal Portfolio Ratings As of March 31, 2025, non-accrual investments as a percentage of total debt investments were 1.4% and 0.8% at cost and fair value, respectively. As of March 31, 2025, there were 4 portfolio companies on non-accrual. (Dollar amounts in thousands) Int
Slide 23: Appendix
Appendix
Slide 24: OBDC Merger: Accounting Treatment of Purchase Discount
OBDC Merger: Accounting Treatment of Purchase Discount Determine Recognize Acquisition OBDC’s Cost One-Time of OBDE Basis in Gain of Assets at a Acquired Purchase Discount Assets Discount Fair Value of Fair Value of Former OBDE Assets OBDE Assets One-Time Purchase Unrealized Gain Discount OBDC New o
Slide 25: Endnotes
Endnotes Note: Figures are as of the quarter-ended 3/31/2025 at fair value unless otherwise noted. Past performance is not a guarantee of future results. 1. Average annual net loss rate across the Blue Owl Credit platform based on total annual net realized losses across all investments divided by th
Slide 26: Non-GAAP Disclosures
Non-GAAP Disclosures On January 13, 2025, the Company completed the merger with Blue Owl Capital Corporation III (OBDE or the “Merger”). The Merger was accounted for as an asset acquisition in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations
Slide 27: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables The following table provides a reconciliation of total investment income (the most comparable U.S. GAAP measure) to adjusted total investment income for the periods presented: For the Three Months Ended ($ in millions, except per share amounts) March 31, 2025 December
Slide 28: Disclosures
Disclosures Forward-Looking Statements Certain statements made in this presentation are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 because they relate to future events, future performance or fi
Slide 29: Disclaimer
Disclaimer Past performance is not a guide to future results and is not indicative of expected realized returns. Based on financial results as of March 31, 2025. Assets Under Management (“AUM”) refers to the assets that we manage, and is generally equal to the sum of (i) net asset value (“NAV”); (ii
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