OCIC provides investors access to a private credit strategy that seeks to generate attractive risk-adjusted returns that are largely income-based.
NAV $9.55 | Annualized total distrib. rate¹: 9.34%
NAV $9.56 | Annualized total distrib. rate¹: 9.93%
NAV $9.57 | Annualized total distrib. rate¹: 10.17%
OCIC is a perpetually non-traded business development company (BDC) that seeks to generate current income through a diverse, high-quality portfolio of predominantly senior secured, directly originated floating rate loans to U.S. middle and upper middle-market companies.
OCIC investments are diversified across non-cyclical, recession-resistant sectors, that are less sensitive to changes in demand.
Direct lending is where a single or a small group of non-bank lenders (or direct lenders) provide a financing solution directly to a private company (or borrower) who often seek loans to finance growth opportunities and their day-to-day operations. The direct lender and borrower directly negotiate a customized solution that suits the needs of both parties. These borrowers are typically privately held and/or owned by private equity firms and are looking for a reliable alternative to a bank.
Diversified lending is a direct lending strategy within the broader universe of private credit. Our strategy directly originates and makes loans to middle and upper-middle market companies that are diversified by borrower, sector, sponsor, and position size.
Our portfolio spans 30 industries for a balanced and strategic approach to portfolio construction.
In executing its investment strategy, OCIC targets investments that are:
Using a disciplined investment strategy and underwriting process, OCIC seeks to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns across credit cycles.
Structure | Perpetually non-traded business development company; OCIC does not intend to seek a liquidity event |
Closings | Monthly closes; 100% of capital fully funded upon closing |
Distributions2 | Paid monthly (distributions are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations) |
Liquidity3 | Up to 5%/quarter; 20%/year of outstanding shares (share repurchase plan). No early withdrawal charge. |
Fund leverage4 | Target 0.9x – 1.25x debt-to-equity with regulatory cap at 2.0x |
Total annual expense (includes interest expense)5 |
Class S: 9.95%; Class D: 9.35%; Class I: 9.10% |
Total annual expense (excludes interest expense)5 |
Class S: 2.39%; Class D: 1.79%; Class I: 1:54% |
Management fee | Annual rate of 1.25% of net assets (no management fee on leverage) |
Incentive fee6 |
|
Minimum initial investment | Investment minimums vary. Please consult your financial representative. |
Suitability7 | Gross annual income of at least $70,000 and a net worth of at least $70,000; or a net worth of at least $250,000. Certain states have higher suitability standards, please refer to the fund prospectus for full details. |
Tax reporting | 1099 |
Max upfront fee8,9 | Class S: Up to 3.50% of net offering proceeds; Class D: Up to 1.50% of net offering proceeds; Class I: None |
Ongoing service fee8,10 | Class S: 0.85% of net asset value (annualized); Class D: 0.25% of net asset value (annualized); Class I: None |
This information is summary in nature and is in no way complete, and these terms have been simplified for illustrative purposes and may change materially at any time without notice. In particular, this information omits certain important details about the stated terms and does not address certain other key Fund terms or risks or represent a complete list of all OCIC terms. If you express an interest in investing in OCIC, you
will be provided with a prospectus, subscription agreement, and other documents ("Fund Documents"), which shall govern in the event of any conflict with the general terms listed herein. You must rely only on the information contained in the Fund Documents in making any decision to invest. Please see prospectus for corresponding terms.
Click here to view additional important information.
Direct lending is where a single or a small group of non-bank lenders (or direct lenders) provide a financing solution directly to a private company (or borrower) who often seek loans to finance growth opportunities and their day-to-day operations. The direct lender and borrower directly negotiate a customized solution that suits the needs of both parties. These borrowers are typically privately held and/or owned by private equity firms and are looking for a reliable alternative to a bank.
Diversified lending is a direct lending strategy within the broader universe of private credit. Our strategy directly originates and makes loans to middle and upper-middle market companies that are diversified by borrower, sector, sponsor, and position size.
Our portfolio spans 30 industries for a balanced and strategic approach to portfolio construction.
In executing its investment strategy, OCIC targets investments that are:
Using a disciplined investment strategy and underwriting process, OCIC seeks to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns across credit cycles.
Structure | Perpetually non-traded business development company; OCIC does not intend to seek a liquidity event |
Closings | Monthly closes; 100% of capital fully funded upon closing |
Distributions2 | Paid monthly (distributions are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations) |
Liquidity3 | Up to 5%/quarter; 20%/year of outstanding shares (share repurchase plan). No early withdrawal charge. |
Fund leverage4 | Target 0.9x – 1.25x debt-to-equity with regulatory cap at 2.0x |
Total annual expense (includes interest expense)5 |
Class S: 9.95%; Class D: 9.35%; Class I: 9.10% |
Total annual expense (excludes interest expense)5 |
Class S: 2.39%; Class D: 1.79%; Class I: 1:54% |
Management fee | Annual rate of 1.25% of net assets (no management fee on leverage) |
Incentive fee6 |
|
Minimum initial investment | Investment minimums vary. Please consult your financial representative. |
Suitability7 | Gross annual income of at least $70,000 and a net worth of at least $70,000; or a net worth of at least $250,000. Certain states have higher suitability standards, please refer to the fund prospectus for full details. |
Tax reporting | 1099 |
Max upfront fee8,9 | Class S: Up to 3.50% of net offering proceeds; Class D: Up to 1.50% of net offering proceeds; Class I: None |
Ongoing service fee8,10 | Class S: 0.85% of net asset value (annualized); Class D: 0.25% of net asset value (annualized); Class I: None |
This information is summary in nature and is in no way complete, and these terms have been simplified for illustrative purposes and may change materially at any time without notice. In particular, this information omits certain important details about the stated terms and does not address certain other key Fund terms or risks or represent a complete list of all OCIC terms. If you express an interest in investing in OCIC, you
will be provided with a prospectus, subscription agreement, and other documents ("Fund Documents"), which shall govern in the event of any conflict with the general terms listed herein. You must rely only on the information contained in the Fund Documents in making any decision to invest. Please see prospectus for corresponding terms.
Click here to view additional important information.
OCIC seeks to deliver attractive monthly income at a yield premium to public fixed income and credit markets, potentially benefiting from illiquidity and complexity premiums.
OCIC’s investment approach seeks to insulate the portfolio from many of the challenges in the public markets. OCIC’s investments are predominantly floating rate, first-lien, senior secured loans structured with low loan-to-values.
OCIC seeks to offers an uncorrelated return stream to traditional fixed income due to the floating rate nature of the portfolio coupled with the exposure to defensive, less-cyclical end markets.
Illustrative Investment Characteristics | Traditional Real Estate1 | Blue Owl Net Lease | IG Fixed Income |
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Primary investment objective
Capital appreciation
Income
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Realize capital appreciation from active investment management and asset management
Capital appreciation
Income
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Generate current income and, to a lesser extent, capital appreciation
Capital appreciation
Income
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Generate current income
Capital appreciation
Income
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Return composition
Capital appreciation
Income
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Realize capital appreciation from active investment management and asset management
Capital appreciation
Income
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Generate current income and, to a lesser extent, capital appreciation
Capital appreciation
Income
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Generate current income
Capital appreciation
Income
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Cashflow
Capital appreciation
Income
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Variable cash flows
Capital appreciation
Income
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Long-term contractual cash flows with escalators
Capital appreciation
Income
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Contractual cash flows
Capital appreciation
Income
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Creditworthy underlying tenant/borrower
Capital appreciation
Income
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Sometimes
Capital appreciation
Income
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Always2
Capital appreciation
Income
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Always
Capital appreciation
Income
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Volatility of capital appreciation
Capital appreciation
Income
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Higher volatility
Capital appreciation
Income
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Lower volatility
Capital appreciation
Income
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None
Capital appreciation
Income
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Liquidity
Capital appreciation
Income
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Less liquid
Capital appreciation
Income
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More liquid
Capital appreciation
Income
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Liquid
Capital appreciation
Income
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Tax-efficiency of income
Capital appreciation
Income
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High
Capital appreciation
Income
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High
Capital appreciation
Income
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Low
Capital appreciation
Income
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Headline risks
Capital appreciation
Income
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Capital appreciation
Income
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Tenant credit
Capital appreciation
Income
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Bond credit
Capital appreciation
Income
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The graphic above seeks to examine for illustrative and educational purposes only similar characteristics of different types of investments solutions. This is not a comparison of like products but rather an illustration of different products with similar characteristics.
1.Based on Blue Owl research on open-end core funds. The terms, investment targets and potential risks of each individual core fund offered by non-Blue Owl sponsors may vary and investors should independently evaluate the risks involved
2.Investment grade companies must have “BBB-” rating or higher by S&P. Creditworthy refers to businesses that Blue Owl deems financially sound enough to justify an extension of credit or engage in a lease agreement. Tenants are creditworthy or investment grade at acquisition.
OCIC is structured as a perpetually non-traded, multi-share class business development company with monthly closings, monthly distributions, and a quarterly tender.
Share Class | 1-month | 3-month | YTD | 1-year | 3-year | ITD |
---|---|---|---|---|---|---|
Class S (No sales load) | 0.90% | 2.56% | 8.03% | 11.93% | 9.58% | 9.22% |
Class S (Max sales load) | -2.51% | -0.91% | 4.38% | 8.15% | 8.33% | 8.15% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $9.49 | $9.49 | $9.50 | $9.51 | $9.57 | $9.53 | $9.55 | $9.56 | $9.55 | - | - | - |
2023 | $9.24 | $9.23 | $9.21 | $9.21 | $9.18 | $9.28 | $9.33 | $9.37 | $9.40 | $9.36 | $9.42 | $9.48 |
2022 | $9.33 | $9.27 | $9.24 | $9.23 | $9.02 | $8.84 | $9.02 | $9.09 | $8.99 | $9.00 | $9.05 | $9.06 |
2021 | - | - | $9.26 | $9.26 | $9.28 | $9.30 | $9.30 | $9.30 | $9.31 | $9.32 | $9.31 | $9.33 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | 0.77% | 0.67% | 1.12% | 0.77% | 1.30% | 0.59% | 0.87% | 0.77% | 0.90% | - | - | - | 8.03% |
2023 | 2.88% | 0.56% | 0.44% | 0.88% | 0.34% | 1.76% | 1.41% | 1.11% | 1.00% | 0.60% | 1.32% | 1.66% | 14.84% |
2022 | 0.53% | -0.11% | 0.21% | 0.43% | -1.74% | -1.45% | 2.65% | 1.37% | -0.44% | 0.78% | 1.22% | 0.77% | 4.21% |
2021 | - | - | - | 0.49% | 0.70% | 0.70% | 0.48% | 0.48% | 0.59% | 0.60% | 0.41% | 0.74% | 5.31% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 Distribution | $0.0633 | $0.0637 | $0.0633 | $0.0635 | $0.0633 | $0.0634 | $0.0632 | $0.0632 | $0.0634 | $0.0632 | - | - |
2024 Special Distribution | - | - | $0.0327 | - | - | $0.0327 | - | - | $0.0327 | - | - | - |
2023 Distribution | $0.0611 | $0.0616 | $0.0610 | $0.0612 | $0.0610 | $0.0612 | $0.0610 | $0.0634 | $0.0636 | $0.0633 | $0.0636 | $0.0633 |
2023 Special Distribution | $0.0200 | - | - | $0.0200 | - | - | $0.0200 | - | - | $0.0327 | - | $0.0327 |
2022 Distribution | $0.0491 | $0.0497 | $0.0491 | $0.0493 | $0.0491 | $0.0495 | $0.0515 | $0.0514 | $0.0515 | $0.0599 | $0.0601 | $0.0599 |
2022 Special Distribution | - | - | - | - | - | - | $0.0025 | $0.0025 | $0.0086 | - | - | - |
2021 Distribution | - | - | - | $0.0450 | $0.0448 | $0.0450 | $0.0447 | $0.0447 | $0.0450 | $0.0447 | $0.0449 | $0.0447 |
2021 Special Distribution | - | - | - | - | - | - | - | - | - | $0.0014 | $0.0029 | $0.0043 |
Distribution payments are not guaranteed. Blue Owl Credit Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.76 per share for Class S, $0.82 per share for Class D, and $0.84 per share for Class I, resulting in annualized distribution rates of 7.94% for Class S shares, 8.55% for Class D shares, and 8.79% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OCIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OCIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending June 30, 2024. For further information, please see our SEC filings at www.sec.gov.
Share Class | 1-month | 3-month | YTD | 1-year | 3-year | ITD |
---|---|---|---|---|---|---|
Class D (No sales load) | 0.95% | 2.61% | 8.50% | 12.58% | 10.26% | 9.82% |
Class D (Max sales load) | -0.54% | 1.09% | 6.90% | 10.92% | 9.71% | 9.36% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $9.50 | $9.50 | $9.51 | $9.52 | $9.58 | $9.55 | $9.56 | $9.57 | $9.56 | - | - | - |
2023 | $9.25 | $9.24 | $9.22 | $9.22 | $9.19 | $9.29 | $9.34 | $9.38 | $9.41 | $9.37 | $9.43 | $9.49 |
2022 | $9.33 | $9.27 | $9.25 | $9.24 | $9.04 | $8.86 | $9.04 | $9.09 | $9.00 | $9.01 | $9.05 | $9.07 |
2021 | - | $9.26 | $9.26 | $9.25 | $9.27 | $9.29 | $9.29 | $9.29 | $9.31 | $9.32 | $9.31 | $9.34 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | 0.82% | 0.72% | 1.17% | 0.82% | 1.35% | 0.74% | 0.82% | 0.82% | 0.95% | - | - | - | 8.50% |
2023 | 2.93% | 0.60% | 0.49% | 0.93% | 0.39% | 1.80% | 1.46% | 1.16% | 1.05% | 0.65% | 1.37% | 1.71% | 15.51% |
2022 | 0.47% | -0.06% | 0.36% | 0.47% | -1.58% | -1.39% | 2.69% | 1.20% | -0.28% | 0.83% | 1.16% | 0.93% | 4.83% |
2021 | - | - | 0.53% | -0.43% | 0.75% | 0.75% | 0.53% | 0.53% | 0.75% | 0.65% | 0.46% | 0.90% | 6.47% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 Distribution | $0.0681 | $0.0682 | $0.0681 | $0.0682 | $0.0681 | $0.0681 | $0.0681 | $0.0681 | $0.0681 | $0.0681 | - | - |
2024 Special Distribution | - | - | $0.0327 | - | - | $0.0327 | - | - | $0.0327 | - | - | - |
2023 Distribution | $0.0657 | $0.0659 | $0.0657 | $0.0658 | $0.0657 | $0.0658 | $0.0657 | $0.0681 | $0.0682 | $0.0681 | $0.0682 | $0.0681 |
2023 Special Distribution | $0.0200 | - | - | $0.0200 | - | - | $0.0200 | - | - | $0.0327 | - | $0.0327 |
2022 Distribution | $0.0538 | $0.0540 | $0.0538 | $0.0539 | $0.0538 | $0.0539 | $0.0560 | $0.0560 | $0.0560 | $0.0645 | $0.0646 | $0.0645 |
2022 Special Distribution | - | - | - | - | - | - | $0.0025 | $0.0025 | $0.0086 | - | - | - |
2021 Distribution | - | - | $0.0495 | $0.0496 | $0.0495 | $0.0496 | $0.0495 | $0.0495 | $0.0495 | $0.0495 | $0.0495 | $0.0495 |
2021 Special Distribution | - | - | - | - | - | - | - | - | - | $0.0014 | $0.0029 | $0.0043 |
Distribution payments are not guaranteed. Blue Owl Credit Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.76 per share for Class S, $0.82 per share for Class D, and $0.84 per share for Class I, resulting in annualized distribution rates of 7.94% for Class S shares, 8.55% for Class D shares, and 8.79% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OCIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OCIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending June 30, 2024. For further information, please see our SEC filings at www.sec.gov.
Share Class | 1-month | 3-month | YTD | 1-year | 3-year | ITD |
---|---|---|---|---|---|---|
Class I | 0.97% | 2.67% | 8.69% | 12.72% | 10.52% | 10.11% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $9.51 | $9.52 | $9.53 | $9.53 | $9.59 | $9.56 | $9.58 | $9.58 | $9.57 | - | - | - |
2023 | $9.26 | $9.26 | $9.24 | $9.24 | $9.21 | $9.31 | $9.36 | $9.39 | $9.43 | $9.38 | $9.45 | $9.50 |
2022 | $9.34 | $9.28 | $9.26 | $9.25 | $9.05 | $8.88 | $9.06 | $9.11 | $9.01 | $9.02 | $9.07 | $9.08 |
2021 | - | $9.26 | $9.26 | $9.26 | $9.28 | $9.30 | $9.30 | $9.30 | $9.32 | $9.32 | $9.31 | $9.34 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | 0.84% | 0.84% | 1.18% | 0.74% | 1.37% | 0.76% | 0.94% | 0.73% | 0.97% | - | - | - | 8.69% |
2023 | 2.95% | 0.73% | 0.51% | 0.95% | 0.41% | 1.82% | 1.48% | 1.07% | 1.17% | 0.56% | 1.49% | 1.62% | 15.77% |
2022 | 0.60% | -0.04% | 0.39% | 0.49% | -1.56% | -1.26% | 2.71% | 1.22% | -0.37% | 0.85% | 1.29% | 0.84% | 5.20% |
2021 | - | - | 0.56% | 0.56% | 0.77% | 0.77% | 0.55% | 0.55% | 0.77% | 0.57% | 0.48% | 0.92% | 6.69% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 Distribution | $0.0701 | $0.0701 | $0.0701 | $0.0701 | $0.0701 | $0.0701 | $0.0701 | $0.0701 | $0.0701 | $0.0701 | - | - |
2024 Special Distribution | - | - | $0.0327 | - | - | $0.0327 | - | - | $0.0327 | - | - | - |
2023 Distribution | $0.0677 | $0.0677 | $0.0677 | $0.0677 | $0.0677 | $0.0677 | $0.0677 | $0.0701 | $0.0701 | $0.0701 | $0.0701 | $0.0701 |
2023 Special Distribution | $0.0200 | - | - | $0.0200 | - | - | $0.0200 | - | - | $0.0327 | - | $0.0327 |
2022 Distribution | $0.0558 | $0.0558 | $0.0558 | $0.0558 | $0.0558 | $0.0558 | $0.0579 | $0.0579 | $0.0579 | $0.0664 | $0.0664 | $0.0664 |
2022 Special Distribution | - | - | - | - | - | - | $0.0025 | $0.0025 | $0.0086 | - | - | - |
2021 Distribution | - | - | $0.0515 | $0.0515 | $0.0515 | $0.0515 | $0.0515 | $0.0515 | $0.0515 | $0.0515 | $0.0515 | $0.0515 |
2021 Special Distribution | - | - | - | - | - | - | - | - | - | $0.0014 | $0.0029 | $0.0043 |
Distribution payments are not guaranteed. Blue Owl Credit Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.76 per share for Class S, $0.82 per share for Class D, and $0.84 per share for Class I, resulting in annualized distribution rates of 7.94% for Class S shares, 8.55% for Class D shares, and 8.79% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OCIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OCIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending June 30, 2024. For further information, please see our SEC filings at www.sec.gov.
Asset Type
Industry Diversification
As of September 30, 2024. Past performance is not representative of future results. Click here to view additional important information.
Company17 | Industry | Facility type | Fair value | Interest rate18 | % of portfolio |
---|---|---|---|---|---|
Cell label Winland Foods | Cell label Food and beverage | Cell label 1st Lien | Cell label $472,017 | Cell label S + 6.25% | 2.1% |
Cell label Associations, Inc. | Cell label Buildings & real estate | Cell label 1st Lien | Cell label $409,412 | Cell label S + 6.50% | 1.8% |
Cell label Recochem | Cell label Chemicals | Cell label 1st Lien | Cell label $345,328 | Cell label S + 5.75% | 1.6% |
Cell label Humanetics | Cell label Professional services | Cell label 1st Lien | Cell label $289,823 | Cell label S + 7.00% (2.00% PIK) | 1.3% |
Cell label Inspira Financial | Cell label Financial services | Cell label 1st Lien | Cell label $248,567 | Cell label S + 5.00% | 1.1% |
Cell label IRI Group Holdings, Inc. | Cell label Advertising and media | Cell label 1st Lien | Cell label $239,160 | Cell label S + 5.50% (2.00% PIK) | 1.1% |
PetVet Care Centers, LLC | Healthcare providers and services | 1st Lien | $237,467 | S + 6.00% | 1.1% |
PCF Insurance Services | Insurance | 1st Lien | $236,751 | 9.00% PIK | 1.1% |
Anaplan, Inc. | Internet software and services | 1st Lien | $231,397 | S + 5.75% | 1.0% |
Innovation Ventures HoldCo, LLC | Food and beverage | 1st Lien | $216,700 | S + 6.25% | 1.0% |
OCIC focuses primarily on originating and making investments in senior secured loans in middle market companies, defined as companies with annual EBITDA between $10 and $250 million and/or annual revenue between $50 million and $2.5 billion at the time of investment. OCIC’s investments will range in size, typically falling between $10 and $125 million. We anticipate that the Company’s portfolio will be broadly diversified across industries, with the average position sizes to be approximately 1-2% with no position size generally greater than 5%. We seek to invest in what we consider to be recession-resistant industries, with no single industry classification representing greater than 20% of the portfolio.
We believe there are several market trends in the middle market lending environment that may provide opportunities for us to meet our goal of making investments that can generate attractive risk-adjusted returns.
We believe that periods of market volatility, current period of market volatility caused, in part, by elevated inflation, rising interest rates, and current geopolitical conditions, have accentuated the advantages of private credit. The availability of capital in the liquid credit market is highly sensitive to market conditions whereas we believe private lending has proven to be a stable and reliable source of capital through periods of volatility. We believe the opportunity set for private credit will continue to expand even after the public markets reopen to normal levels. Financial sponsors and companies today are familiar with direct lending and have seen firsthand the strong value proposition that a private solution can offer. Scale, certainty of execution and flexibility all provide borrowers with a compelling alternative to the syndicated and high yield markets. Based on our experience, there is an emerging trend where higher quality credits that have traditionally been issuers in the syndicated and high yield markets are increasingly seeking private solutions independent of credit market conditions.
To date, a substantial majority of our investments have been sourced directly.
We believe that our expansive origination capabilities and deep relationships allow us to source through multiple channels, generate investment opportunities with the potential for more attractive risk-adjusted return characteristics, and be more selective investors than if we were solely relying on origination flows from investment banks or other intermediaries.
The Investment Team includes more than 115 investment professionals and is responsible for originating, underwriting, executing and managing the assets of our direct lending transactions and for sourcing and executing opportunities directly. The Investment Team has significant experience as transaction originators and building and maintaining strong relationships with private equity sponsors and companies. The Investment Team also maintains direct contact with banks, corporate advisory firms, industry consultants, attorneys, investment banks, “club” investors and other potential sources of lending opportunities.
The fund will have monthly closes and 100% of capital will be drawn upon subscription. Suitable investors may purchase OCIC by completing a Subscription Agreement. Please see the Prospectus for complete details.
Investors in OCIC are admitted on the first business day of each month. New investors will receive their first distribution ~20 business days following the last business day of their month of admission. Subject to OCIC’s Board of Directors and applicable legal restrictions, OCIC intends to pay distributions monthly.
Under the share repurchase program, the Company intends to repurchase once per quarter no more than 5% of our outstanding shares of common stock.
Management Fee: Annual rate of 1.25% of net assets (no management fee on leverage)
Incentive Fee6:
Total annual expense (includes interest expense)5
Total annual expense (excludes interest expense)5
We offer three share classes to the public: Class S, Class D and Class I shares. The differences among the share classes relate to the max upfront fees and ongoing service fees.
|
Class S |
Class D |
Class I |
Max upfront fee8,9 |
Up to 3.50% of net offering proceeds |
Up to 1.50% of net offering proceeds |
None |
Ongoing service fee8,10 |
0.85% of net asset value (annualized) |
0.25% of net asset value (annualized) |
None |
Investors must submit a signed subscription agreement. Please see the Prospectus for complete details.
The fund administrator posts investor statements to a portal on a monthly basis where each individual investor can download the statement. Please reach out to your Blue Owl representative for specific questions.
Distributions are paid monthly, with the potential for special distributions. Please note that distributions are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations. The payment of future distributions is subject to the discretion of OCIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions.
OCIC focuses primarily on originating and making investments in senior secured loans in middle market companies, defined as companies with annual EBITDA between $10 and $250 million and/or annual revenue between $50 million and $2.5 billion at the time of investment. OCIC’s investments will range in size, typically falling between $10 and $125 million. We anticipate that the Company’s portfolio will be broadly diversified across industries, with the average position sizes to be approximately 1-2% with no position size generally greater than 5%. We seek to invest in what we consider to be recession-resistant industries, with no single industry classification representing greater than 20% of the portfolio.
We believe there are several market trends in the middle market lending environment that may provide opportunities for us to meet our goal of making investments that can generate attractive risk-adjusted returns.
We believe that periods of market volatility, current period of market volatility caused, in part, by elevated inflation, rising interest rates, and current geopolitical conditions, have accentuated the advantages of private credit. The availability of capital in the liquid credit market is highly sensitive to market conditions whereas we believe private lending has proven to be a stable and reliable source of capital through periods of volatility. We believe the opportunity set for private credit will continue to expand even after the public markets reopen to normal levels. Financial sponsors and companies today are familiar with direct lending and have seen firsthand the strong value proposition that a private solution can offer. Scale, certainty of execution and flexibility all provide borrowers with a compelling alternative to the syndicated and high yield markets. Based on our experience, there is an emerging trend where higher quality credits that have traditionally been issuers in the syndicated and high yield markets are increasingly seeking private solutions independent of credit market conditions.
To date, a substantial majority of our investments have been sourced directly.
We believe that our expansive origination capabilities and deep relationships allow us to source through multiple channels, generate investment opportunities with the potential for more attractive risk-adjusted return characteristics, and be more selective investors than if we were solely relying on origination flows from investment banks or other intermediaries.
The Investment Team includes more than 115 investment professionals and is responsible for originating, underwriting, executing and managing the assets of our direct lending transactions and for sourcing and executing opportunities directly. The Investment Team has significant experience as transaction originators and building and maintaining strong relationships with private equity sponsors and companies. The Investment Team also maintains direct contact with banks, corporate advisory firms, industry consultants, attorneys, investment banks, “club” investors and other potential sources of lending opportunities.
Investors in OCIC are admitted on the first business day of each month. New investors will receive their first distribution ~20 business days following the last business day of their month of admission. Subject to OCIC’s Board of Directors and applicable legal restrictions, OCIC intends to pay distributions monthly.
Management Fee: Annual rate of 1.25% of net assets (no management fee on leverage)
Incentive Fee6:
Total annual expense (includes interest expense)5
Total annual expense (excludes interest expense)5
We offer three share classes to the public: Class S, Class D and Class I shares. The differences among the share classes relate to the max upfront fees and ongoing service fees.
|
Class S |
Class D |
Class I |
Max upfront fee8,9 |
Up to 3.50% of net offering proceeds |
Up to 1.50% of net offering proceeds |
None |
Ongoing service fee8,10 |
0.85% of net asset value (annualized) |
0.25% of net asset value (annualized) |
None |
Distributions are paid monthly, with the potential for special distributions. Please note that distributions are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations. The payment of future distributions is subject to the discretion of OCIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions.
All data as of September 30, 2024 unless otherwise noted. Past performance is not a guarantee of future results.
Endnotes
1. Distribution payments are not guaranteed. Blue Owl Credit Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.76 per share for Class S, $0.82 per share for Class D, and $0.84 per share for Class I, resulting in annualized distribution rates of 7.94% for Class S shares, 8.55% for Class D shares, and 8.79% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OCIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OCIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending June 30, 2024. For further information, please see our SEC filings at www.sec.gov.
2. Distribution payments are not guaranteed. Blue Owl Credit Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements.
3. Any periodic repurchase offers are subject in part to our available cash and compliance with the BDC and RIC qualification and diversification rules promulgated under the 1940 Act and the Code, respectively. While we Intend to continue to conduct quarterly repurchase offers as described above, we are not required to do so and may suspend or terminate the share repurchase program at any time. All periodic repurchase offers are subject to Board approval.
4. Under the 1940 Act, we are required to maintain an asset coverage ratio of 150%. We are not otherwise limited in the amount of leverage that we may incur, and the amount of leverage that we incur is within our discretion.
5. Total annual expenses include expenses incurred at the fund-level, which an investor in the Fund bears indirectly. Total annual expenses include base management fees, incentive fees, interest payment on borrowed funds, ongoing service fees, acquired fund fees and expenses, and other expenses as outlined in the fund's prospectus.
6. The incentive fee consists of an incentive fee on income and an incentive fee on capital gains. The incentive fee on income is calculated and payable quarterly in arrears, subject to a 5% hurdle, and includes a catch-up rate after the hurdle. For more information on the incentive fee, please see the Prospectus.
7. Suitability requirements vary by broker-dealer. Please consult your financial representative.
8. To be paid by the Investor.
9. Composition of Class S upfront sales load may change but will not exceed 3.50%.
10. Ongoing Service Fee, together with the maximum upfront sales load, to be capped at 10% of gross proceeds or such other lower amount as Blue Owl may negotiate with its distribution partners.
11. Past performance is not a guarantee of future results. Returns are compounded monthly. Total return is calculated as the change in monthly NAV (assuming any dividends and distributions, net of shareholder servicing fees, are reinvested in accordance with the Company’s dividend reinvestment plan), if any, divided by the beginning NAV. Returns greater than one year are annualized. Returns reflect reinvestments of distributions and the deduction of ongoing expenses that are borne by investors, such as management fees, incentive fees, servicing fees, interest expense, offering costs, professional fees, director fees and other general and administrative expenses. An investment in the Company is subject to a maximum upfront sales load (Class S: 3.5%, Class D: 1.5%, Class I: No sales load) which will reduce the amount of capital available for investment. Operating expenses may vary in the future based on the amount of capital raised, the Adviser’s election to continue expense support, and other unpredictable variables. Total returns based on the max upfront fee load for an investor starting at the inception of the respective share class, which for Class S is April 1, 2021 and for Class D and Class I are March 1, 2021. Class I does not have upfront fees.
12. As of September 30, 2024. Based on par value and shown net of unfunded commitment amounts. Valuations may change over time. Based on debt portfolio only. Par value represents the face value of loans in the portfolio.
13. As of June 30, 2024 and based on fair value of portfolio reported in 2Q24 financials.
14. As of June 30, 2024. Weightings are based on fair value of investments unless otherwise noted. Borrower financials are derived from the most recently available portfolio company financial statements, have not been independently verified by Blue Owl, and may reflect a normalized or adjusted amount Accordingly, Blue Owl makes no representation or warranty in respect of this information.
15. As of June 30, 2024 and based on the portfolio reported in 2Q24 financials.
16. Other industries include Manufacturing (3.4%), Leisure and entertainment (3.2%), Chemicals (2.9%), Containers and packaging (2.9%), Buildings and real estate (2.8%), Advertising and media (2.7%), Distribution (2.7%), Specialty retail (2.1%), Infrastructure and environmental services (1.8%), Consumer products (1.8%), Household products (1.5%), Telecommunications (1.3%), Asset based lending and fund finance (1.0%), Human resource support services (1.0%), Pharmaceuticals (0.8%), Transportation (0.6%), Automotive services (0.6%), Education (0.6%), Aerospace and defense (0.5%), Energy equipment and services (0.4%), and Automotive aftermarket (0.2%).
17. Debt investments are shown as “Doing Business As” names. Please refer to the 10-K or 10-Q for actual borrower names. Holdings are subject to change and there is no assurance any investment will remain in our portfolio.
18. Unless otherwise indicated, loan contains a variable rate structure, and may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate (“SOFR” or “S”) (which can include one-, three-, six- or twelve-month SOFR), Euro Interbank Offered Rate (“EURIBOR” or “E”), Canadian Overnight Repo Rate Average (“CORRA” or “C”) (which can include one- or three-month CORRA), Sterling (SP) Overnight Interbank Average Rate (“SONIA” or “SA”) or an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate (“Prime” or “P”), at the borrower’s option, and which reset periodically based on the terms of the loan agreement.
Important information
OCIC Risk Factors
Assets Under Management (“AUM”) refers to the assets that we manage and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; and (iii) uncalled capital commitments.
This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. Only a prospectus for Blue Owl Credit Income Corp. can make such an offer. This material is authorized only when it is accompanied or preceded by the Blue Owl Credit Income Corp. prospectus. Neither the SEC, the Attorney General of the State of New York nor any state securities commission has approved or disapproved of these securities or determined if the prospectus is truthful or complete. Any representation to the contrary is a criminal offense. Securities are offered through Blue Owl Securities LLC, member of FINRA/SIPC, as Dealer Manager.
An investment in Blue Owl Credit Income Corp. (“OCIC”) 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 involved in an investment in OCIC's common shares; however, an investor should carefully consider the fees and expenses and information found in the “Risk Factors” section of the OCIC prospectus before deciding to invest:
You should not expect to be able to sell your shares regardless of how OCIC performs and you should consider that you may not have access to the money you invest for an indefinite period of time. An investment in shares of OCIC's common stock is not suitable for you if you need access to the money you invest.
OCIC does not intend to list its shares on any securities exchange and does not expect a secondary market in its shares to develop. As a result, you may be unable to reduce your exposure in any market downturn. If you are able to sell your shares before a liquidity event is completed, you will likely receive less than your purchase price.
OCIC has implemented a share repurchase program pursuant to which it intends to conduct quarterly repurchases of a limited number of outstanding shares of its common stock. OCIC's board of directors has complete discretion to determine whether OCIC will engage in any share repurchase, and if so, the terms of such repurchase. OCIC's share repurchase program will include numerous restrictions that may limit your ability to sell your shares. As a result, share repurchases may not be available each month. While OCIC intends to continue to conduct quarterly tender offers as described above, it is not required to do so and may suspend or terminate the share repurchase program at any time.
Distributions on OCIC's common stock may exceed OCIC's taxable earnings and profits, particularly during the period before it has substantially invested the net proceeds from its public offering. Therefore, portions of the distributions that OCIC pays may represent a return of capital to you for U.S. federal tax purposes. A return of capital is a return of a portion of your original investment in shares of OCIC common stock. As a result, a return of capital will (I) lower your tax basis in your shares and thereby increase the amount of capital gain (or decrease the amount of capital loss) realized upon a subsequent sale or redemption of such shares, and (ii) reduce the amount of funds OCIC has for investment in portfolio companies. OCIC has not established any limit on the extent to which it may use offering proceeds to fund distributions.
Distributions are not guaranteed. Distributions may also be funded in significant part, directly or indirectly, from (I) the waiver of certain investment advisory fees, that will not be subject to repayment to the Adviser and/or (ii) the deferral of certain investment advisory fees that may be subject to repayment to the Adviser and/or (iii) the reimbursement of certain operating expenses, that will be subject to repayment to the Adviser and its affiliates. Significant portions of distributions may not be based on investment performance. In the event distributions are funded from waivers and/or deferrals of fees and reimbursements by OCIC's affiliates, such funding may not continue in the future. If OCIC's affiliates do not agree to reimburse certain of its operating expenses or waive certain of their advisory fees, then significant portions of OCIC's distributions may come from offering proceeds or borrowings. The repayment of any amounts owed to OCIC's affiliates will reduce future distributions to which you would otherwise be entitled.
The payment of fees and expenses will reduce the funds available for investment, the net income generated, the funds available for distribution and the book value of the common shares. In addition, the fees and expenses paid will require investors to achieve a higher total net return in order to recover their initial investment. Please see OCIC's prospectus for details regarding its fees and expenses.
OCIC intends to invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer's capacity to pay interest and repay principal. They may also be illiquid and difficult to value.
The Adviser and its affiliates face a number of conflicts with respect to OCIC. Currently, the Adviser and Its affiliates manage other investment entities, including Blue Owl Capital Corporation and Blue Owl Capital Corporation II, and are not prohibited from raising money for and managing future investment entities that make the same types of investments as those OCIC targets. As a result, the time and resources that the Adviser devotes to OCIC may be diverted. In addition, OCIC may compete with any such investment entity also managed by the Adviser for the same investors and investment opportunities. Furthermore, the Adviser may face conflicts of interest with respect to services it may perform for companies in which OCIC invests as it may receive fees in connection with such services that may not be shared with OCIC.
The incentive fee payable by OCIC to the Adviser may create an incentive for the Adviser to make investments on OCIC's behalf that are risky or more speculative than would be the case in the absence of such compensation arrangements. OCIC may be obligated to pay the Adviser Incentive fees even if OCIC incurs a net loss due to a decline in the value of its portfolio and even if its earned interest income is not payable in cash.
The information provided above is not directed at any particular investor or category of investors and is provided solely as general information about Blue Owl Capital Inc.'s products and services to regulated financial intermediaries and to otherwise provide general Investment education. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as Blue Owl Securities LLC, its affiliates, and OCIC are not undertaking to provide Impartial investment advice, act as an impartial adviser, or give advice in a fiduciary capacity with respect to the materials presented herein.
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