Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Owl Rock Capital Corporation II — Q3 2021 Earnings Presentation
22 slides from Blue Owl Capital's earnings presentation, November 2021
Slide 1: Owl Rock Capital Corporation II Quarterly Earnings Presentation
Owl Rock Capital Corporation II Quarterly Earnings Presentation September 30, 2021 This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. An offering is made only by the Owl Rock Capital Corporation II prospectus to individuals who meet minimum suitab
Slide 2: Risk Factors
Risk Factors An investment in Owl Rock Capital Corporation II ("ORCC II") 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 risk
Slide 3: Risk Factors Cont’d
Risk Factors Cont’d • The Adviser and its affiliates face a number of conflicts with respect to us. Currently, the Adviser and its affiliates manage other investment entities, including Owl Rock Capital Corporation, and are not prohibited from raising money for and managing future investment entitie
Slide 4: Important Information
Important Information Unless otherwise indicated, the Report Date reference is 9/30/2021. Past performance is not a guide to future results and is not indicative of expected realized returns. This presentation contains proprietary information regarding Blue Owl Capital Inc. ("Blue Owl"), its affilia
Slide 5: Overview of Owl Rock Capital Corporation II
Owl Rock | A Division of Blue Owl Overview of Owl Rock Capital Corporation II Quick Facts Total Portfolio Investments ($MMs) • Specialty finance company that provides individual $2,203 $1,680 $2,319 investors access to Owl Rock’s institutional quality, $1,628 $1,852 direct lending platform $1,442 •
Slide 6: High Quality Senior Secured Portfolio
Owl Rock | A Division of Blue Owl High Quality Senior Secured Portfolio • High quality directly originated upper middle market portfolio Scaled and • Target EBITDA: $10 million − $250 million Diversified, Senior • Borrower weighted average EBITDA of $127 million with portfolio company leverage of 5.
Slide 7: NAV Per Share and Distributions
Owl Rock | A Division of Blue Owl Nav Per Share and Distributions $12.00 8.0% 8% 7.7% 7.6% 7.5% 7.3% 7.3% 7.3% 7.4% 7.4% 7.4% 7.4% 7.4% 7.4% 7.4% 6.8% 6.7% 6.7% 6.7% 7% $10.00 $9.00 $9.03 $9.04 $9.03 $9.06 $9.07 $9.08 $8.97 $9.06 $9.08 $9.03 $9.03 $8.91 $8.95 $8.97 $8.74 $8.84 $8.59 6% $8.29 $8.00 5
Slide 8: Financial Highlights
Owl Rock | A Division of Blue Owl 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) Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net investment income per share $0.15 $0.16
Slide 9: Portfolio Highlights – Selected Metrics
Owl Rock | A Division of Blue Owl Portfolio Highlights – Selected Metrics As of and For Three Months Ended (Dollar amounts in thousands) September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 Investments at Fair Value $1,851,842 $2,135,473 2,202,667 2,389,420 2,318,748
Slide 10: Quarterly Statements of Financial Condition
Owl Rock | A Division of Blue Owl Quarterly Statements of Financial Condition (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) As of September 30, 2020 December 31, 2020 March 31, 2021 Ju
Slide 11: Quarterly Operating Results Detail
Owl Rock | A Division of Blue Owl Quarterly Operating Results Detail For the Three Months Ended (Dollar amounts in thousands) September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 Investment Income Interest from Investments - Interest Income1 $32,193 $36,500 $40,135 $4
Slide 12: Portfolio Highlights – Originations
Owl Rock | A Division of Blue Owl Portfolio Highlights – Originations (Dollar amounts in millions) ORCC II Quarterly Originations and Net Funds Growth • Gross originations were $526.4 for the quarter • New investment commitments and fundings totaled $440.6 and $376.7, respectively, for the quarter.
Slide 13: Portfolio Highlights – Asset Mix
Owl Rock | A Division of Blue Owl Portfolio Highlights – Asset Mix New Investment Fundings End of Period Investments (At par value, Dollar amounts in millions) (At fair value, Dollar amounts in millions) $2,389 $2,319 2% 2% 2% $2,203 $2,135 2% 1% 2% $377 2% 1% 1% >1% <1% 5% 23% $328 $1,852 20% $315
Slide 14: Portfolio Highlights – Diversification
Owl Rock | A Division of Blue Owl Portfolio Highlights – Diversification Borrower Diversification Industry Diversification Internet software and services 12.2% Top 10 positions Insurance 8.3% represent 22% of the portfolio at FV Food and beverage 7.7% Healthcare providers and services 7.4% Manufactu
Slide 15: Portfolio Highlights – Net Interest Margin
Owl Rock | A Division of Blue Owl Portfolio Highlights – Net Interest Margin 10.0% 8.0% 7.7% 7.7% 7.7% 7.4% 7.8% 6.3% 6.4% 6.4% 6.4% 6.5% 6.0% 4.0% 3.6% 3.5% 3.4% 3.4% 3.4% 2.0% 0.2% 0.2% 0.2% 0.2% 0.1% 0.0% 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 Asset Yield 1,2 Weighted Average Spread over LIBOR of all Accr
Slide 16: Financing Landscape
Owl Rock | A Division of Blue Owl Financing Landscape SPV Asset Facility I SPV Asset Facility II Unsecured Notes Size $500 million $325 million Size $450 million Maturity Date November 30, 2023 April 14, 2029 Maturity Date November 26, 2024 Interest Rate LIBOR + 237.5 LIBOR + 2752 Fixed Coupon 4.625
Slide 17: Appendix
Appendix
Slide 18: Portfolio Snapshot as of 9/30/21 (1 of 4)
Owl Rock | A Division of Blue Owl Portfolio Snapshot as of 9/30/21 (1 of 4) Fair Amortized Interest LIBOR/ All-In 3-Year Investment Name Value Cost Spread Prime Rate 1 Rate OID 2 YTM 3 Facility Type Industry Sponsor 3ES Innovation Inc. (dba Aucerna)4 $10,723 $10,732 6.75% 1.00% 7.75% 0.91% 8.05% 1st
Slide 19: Portfolio Snapshot as of 9/30/21 (2 of 4)
Owl Rock | A Division of Blue Owl Portfolio Snapshot as of 9/30/21 (2 of 4) Fair Amortized Interest LIBOR/ All-In 3-Year Investment Name Value Cost Spread Prime Rate 1 Rate OID 2 YTM 3 Facility Type Industry Sponsor Gaylord Chemical Company, L.L.C. $29,993 $29,935 6.00% 1.00% 7.00% 0.93% 7.31% 1st L
Slide 20: Portfolio Snapshot as of 9/30/21 (3 of 4)
Owl Rock | A Division of Blue Owl Portfolio Snapshot as of 9/30/21 (3 of 4) Fair Amortized Interest LIBOR/ All-In 3-Year Investment Name Value Cost Spread Prime Rate 1 Rate OID 2 YTM 3 Facility Type Industry Sponsor Motus, LLC and Runzheimer International LLC $6,438 $6,368 5.50% 1.00% 6.50% 1.10% 6.
Slide 21: Portfolio Snapshot as of 9/30/21 (4 of 4)
Owl Rock | A Division of Blue Owl Portfolio Snapshot as of 9/30/21 (4 of 4) Fair Amortized Interest LIBOR/ All-In 3-Year Investment Name Value Cost Spread Prime Rate 1 Rate OID 2 YTM 3 Facility Type Industry Sponsor THG Acquisition, LLC (dba Hilb) $24,897 $24,707 5.75% 1.00% 6.75% 1.95% 7.40% 1st Li
Slide 22: Owl Rock | A Division of Blue Owl
Owl Rock | A Division of Blue Owl ORCC II IS CURRENTLY CLOSED TO NEW INVESTORS.
Owl Rock Capital Corporation II — Q3 2021 Earnings Presentation on 6ix