Blue Owl Technology Finance Corp. · NYSE:OTF
Blue Owl Technology Finance — Investor Presentation (June 2025)
43 slides from Blue Owl Technology Finance's investor presentation, Jun 3, 2025
Slide 1: Blue Owl Technology Finance Corp. ("OTF") Overview of Intention to List on the NYSE
June 3, 2025 Blue Owl Technology Finance Corp. (“OTF”) Overview of Intention to List on the New York Stock Exchange Highly Confidential. Trade Secret.
Slide 2: Blue Owl Technology Finance Corp. intends to list its shares on the NYSE
Blue Owl Technology The listing is expected Finance Corp. intends to to bring the largest list its shares on the New technology-focused York Stock Exchange on BDC1 to the public or about June 12, 2025 market in a simple, under the ticker symbol streamlined way “OTF” PROPRIETARY AND CONFIDENTIAL 2
Slide 3: Listing Summary
Listing Summary We expect the company’s shares to start trading on the New York Stock Exchange on or about June 12, 2025 under the ticker “OTF” Company Name o Blue Owl Technology Finance Corp. (NYSE: OTF) (Exchange: Ticker) Net Asset Value (NAV) & o Net asset value per share of $17.09 as of March 31
Slide 4: Anticipated Listing Timeline
Anticipated Listing Timeline Listing provides existing shareholders with continued opportunity for attractive risk-adjusted returns while enhancing liquidity over time, consistent with manager commitment at inception June August September June 3 June 12 June 30 Early August September 22 September 30
Slide 5: A Defensive Portfolio In Times of Market Volatility
A Defensive Portfolio In Times of Market Volatility Opportunity for Healthy Borrower Performance BDCs Remain Resilient High-Quality Portfolios • Borrowers have generally • BDCs have generated strong • Despite macroeconomic concerns, continued to see EBITDA and returns over the past several years tra
Slide 6: Blue Owl Technology Finance Corp. ("OTF")
Blue Owl Technology Finance Corp. (“OTF”) Largest technology-focused BDC by total assets upon listing Investment Approach OTF Highlights • Primarily focused on making debt and equity investments to U.S. upper middle-market technology-related companies, TICKER NYSE: OTF with a strategic focus on soft
Slide 7: A Compelling Investment Opportunity
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 sponsor,
Slide 8: About Blue Owl, a Leading Global Alternative Asset Manager
About Blue Owl, a Leading Global Alternative Asset Manager
Slide 9: OTF is Managed by Blue Owl, A Leading Alternative Asset Manager
OTF is Managed by Blue Owl, A Leading Firm Overview Alternative Asset • Blue Owl offers investors Manager differentiated investment opportunities that aim to deliver strong Blue Owl’s scale and size performance, risk-adjusted returns and capital preservation provide private companies with investment
Slide 10: 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 and technology lending represents a meaningful segment of that AUM Our Credit Business Today - $139bn AUM Diversified Technology First Lien Opportunistic Alternative Investment Liquid Credit Other Le
Slide 11: Blue Owl's Scale and Adjacent Credit Strategies Can 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 12: 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
Slide 13: Unique and Market-Leading Technology Strategy
Unique and Market-Leading Technology Strategy
Slide 14: Blue Owl Technology Lending by the Numbers
Blue Owl Technology Lending by the Numbers Experienced Investors with Deep Domain Expertise 130+ 35+ 2 2018 Investment Technology-Focused Offices in New York and Blue Owl Technology Professionals Investors Menlo Park Strategy Inception Robust Originations with Highly Selective Dedicated Pools of Per
Slide 15: 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
Slide 16: 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
Slide 17: 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
Slide 18: 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%
Slide 19: 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
Slide 20: 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
Slide 21: 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
Slide 22: 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,
Slide 23: Focus on Recurring Revenue Loans
Focus on 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 Asked Question
Slide 24: Preferred Equity Snapshot
Preferred Equity Snapshot 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 companies i
Slide 25: Payment-in-Kind ("PIK") as a Strategy
Payment-in-Kind (“PIK”) as a Strategy 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 Origination? G
Slide 26: A Leading Software BDC: Blue Owl Technology Finance Corp.
A Leading Software BDC: Blue Owl Technology Finance Corp.
Slide 27: OTF to List as the Largest Technology-Focused BDC
OTF to List as the Largest Technology-Focused BDC1 o OTF will become the second largest publicly traded BDC by net assets upon listing: $7.9bn in net assets and $12.1bn in investments across 181 portfolio companies Access to a Scaled and o Significant portfolio diversification: average position size
Slide 28: 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 $12.1B 181 81% 35 <0.1% 92% 0.6% 1.8x Portfolio Portfolio Senior Portfolio Non-Accruals at Internal
Slide 29: Flexible Balance Sheet and Well-Diversified Financing Structure
Flexible Balance Sheet and Well-Diversified Financing Structure Funding Mix ($ in millions) Debt Maturities (Committed, $ in millions) $8,592 $4.0bn Committed Total Liquidity2 $3,975 $2,960 $700 $5,200 Outstanding $700 $732 $2,357 $2,960 $2,325 $732 $2,575 $732 $860 $725 $1,625 $2,575 $913 $375 $300
Slide 30: 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 $23.68 $23.34 $22.87 $22.26 $22.30 $21.82 $21.33 $21.06 $20.51 $20.05 $19.95 $20.04 $19.78 $19.8
Slide 31: 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 At Listing: $0.35/share regular dividend plus Before Listing: Floating rate dividend policy five special divid
Slide 32: 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 0.53x net debt-to-equity, • Potential for incremental accretion from below our target range of 0.90x – 1.25x optimization of portfolio mix over time • $4 billion1 of dry powd
Slide 33: 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
Slide 34: Appendix
Appendix
Slide 35: Key Dates
Key Dates Regular Dividends Declared Declaration date Record date Payment date Amount per share 6/2/2025 6/30/2025 7/15/2025 $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
Slide 36: 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 $0.45 $0.49 $0.44 $0.41 $0.41 Net Realized a
Slide 37: Portfolio Highlights – Internal Portfolio Ratings
Portfolio Highlights – Internal Portfolio Ratings Non-accrual investments at 3/31/2025 as a percentage of total portfolio investments at cost and fair value were 0.2% and <0.1%, respectively. At quarter end 3/31/2025, there was 1 portfolio company on non-accrual. (Dollar amounts in thousands) Inter
Slide 38: OTF Financing Landscape
OTF Financing Landscape Aggregate Principal Amount Principal Committed / Amount Outstanding Outstanding Interest Rate Maturity Date Debt Maturities ($mm)3 Revolving Credit Facility $2,575 million $596 million SOFR + 175-187.5 bps2 12/20/2029 SPV Asset Facility I $700 million $600 million SOFR + 225
Slide 39: Endnotes (1 of 3)
Endnotes (1 of 3) 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. Page 2: Blue Owl Technology Corp. Intends to List its Shares on the New York Stock Exchange on or about June 12, 2025 Under the Ticker Sy
Slide 40: Endnotes (2 of 3)
Endnotes (2 of 3) Page 18: Technology and Software Debt Has Been Historically Resilient Across Multiple Cycles 1. Source: Pitchbook LCD, ”US Leveraged Loan Default Review April 8, 2025”. The cumulative default rate is calculated as a total number of U.S. institutional loan defaults, divided by the t
Slide 41: Endnotes (3 of 3)
Endnotes (3 of 3) Page 28: OTF at a Glance 1. As part of its portfolio monitoring process, Blue Owl Technology Credit Advisors LLC employs an investment rating system to categorize our investments, where 1 is the highest rating and 5 is the lowest. 2. Borrower financials are as of the latest availab
Slide 42: 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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