Since inception, OCIC has meaningfully outperformed traditional fixed income across a range of market environments, underpinned by disciplined underwriting and a defensively constructed portfolio. The fund has delivered a 9.2%* ITD annualized total return for Class I shareholders.1
Direct lending has the ability to weather market volatility and can continue to play an important part of overall portfolio allocations
OCIC is well positioned to continue performing as designed, seeking current income with a focus on risk management.
OCIC has delivered strong performance and is well positioned with a large, diversified portfolio of mostly senior-secured loans to high-quality borrowers.
Credit quality remains strong, reflecting our focus on lending to large, highly recession-resistant businesses built to withstand economic changes. We observed improvements in key metrics from our portfolio companies throughout calendar year 2025 and into the first quarter of 2026: weighted-average revenue and EBITDA grew by 8% and 4%, respectively, and interest coverage ratios increased by 8% to 2.1x.2
The number of portfolio companies performing below our expectations has not changed meaningfully and represented ~5% or less of the portfolio over the last three years. Non-accruals remain low at ~0.2%3 and below the market average of 1.0%4.
Non-accruals remain low at 0.2%3. Nevertheless, OCIC is well positioned to navigate future challenges, with a portfolio consisting primarily of senior-secured loans, which typically have priority claims on the borrower's assets (similar to a mortgage). Moreover, the loans in OCIC’s portfolio represent, on average, 43% of the value of the borrower. Thus, if the business defaults, there are significant assets and equity that can potentially support a strong recovery and minimize losses.
The key takeaway here is that it’s the loss rate,5 not the default rate,6 that can affect a direct lending portfolio’s performance.
Illustrative example of a company losing 50% of its equity value and the effect on loan-to-value:
Since the inception of OCIC, the fair value of our investments has been determined by working with independent thirdparty valuation firms. These firms employ a multistep process, taking into consideration individual portfolio company performance, public credit spreads, and other factors. These marks are rooted in ongoing fundamental credit analysis, which includes current market conditions – not sentiment or headlines.
The par value, cost basis, and fair value for every position in OCIC is publicly available through our quarterly filings. Through these transparent filings, you will find that a subset of assets are marked below par, which may reflect widening credit spreads or underlying portfolio company performance. This means that some of the downside risk is already reflected in the NAV investors see today.
Our approach to balance sheet construction has been guided by a conservative approach and a focus on diversification and long-term stability.
OCIC carries investment grade ratings7 from five independent institutions and was recently upgraded to Baa2 by Moody’s – a distinction held by a small number of BDCs.
OCIC has deep and diverse access to capital:
OCIC was specifically designed to offer repurchases of up to 5% of its shares each quarter at net asset value. This structure is intended to balance periodic shareholder liquidity with the obligation to protect shareholder capital – matching asset duration, avoiding the sale of assets below their intrinsic value to meet redemption requests, and preserving access to the return premium offered by private credit.
Our strong liquidity profile represents more than 11x the dollar amount needed for OCIC to meet the typical 5% quarterly repurchase offer. In addition to that, the portfolio typically has 6%–8% of its total investments repay each quarter based on historical asset duration, which amounts to ~$2 billion plus of potential additional liquidity.
This design feature, coupled with our disciplined liquidity and leverage management, leaves us well positioned to capitalize on potential deployment opportunities while meeting obligations with a significant buffer.
Direct lending has historically performed relatively well in volatile markets, with lower reported volatility and smaller drawdowns than public credit and equities – supported by senior secured positioning, covenants, and high current income. It can also take advantage of volatility by deploying capital at wider spreads and with tighter lender protections compared to traditional financing retrenches.
Studying OCIC’s performance during the most recent prolonged period of volatility is helpful context. Beginning in early 2022, surging inflation, geopolitical shocks, recession fears, and eventual regional bank failures drove meaningful declines across both stocks and bonds.10
We believe the 2022 volatility created opportunity for direct lending into 2023, with traditional banks pulling back and private lenders stepping in to deploy capital at wider spreads and with stronger covenant protections, even as overall deal volume remained below prior-cycle peaks.
As we enter into a more volatile environment, we believe the 2022–2023 period underscores how senior-secured direct lending – exemplified by OCIC – can potentially defend capital through and capitalize on dislocation.
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Endnotes
Due to data availability, * denotes data as of April 2026; all other data as of March 31, 2026.
| Total Returns | 1-Month | 3-Month | YTD | 1-Year | 3-Year | 5-Year | ITD (annualized) |
| Class S (With Max Sales Load) | -2.28% | -2.27% | -2.79% | 2.52% | 8.00% | 7.60% | 7.57% |
| Class S (No Max Sales Load) | 1.14% | 0.68% | -0.61% | 6.11% | 9.25% | 8.34% | 8.30% |
| Class D (With Max Sales Load) | -0.30% | -0.66% | -0.68% | 5.16% | 9.34% | 8.70% | 8.61% |
| Class D (No Max Sales Load) | 1.19% | 0.83% | 0.81% | 6.74% | 9.89% | 9.03% | 8.93% |
| Class I | 1.21% | -0.89% | 1.00% | 7.11% | 10.14% | 9.31% | 9.23% |
OCIC risk factors
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.
Important information
Unless otherwise noted the Report Date referenced herein is as of April 30, 2026.
Past performance is not a guarantee of future results.
The material presented is proprietary information regarding Blue Owl Capital Inc. (“Blue Owl”), its affiliates and investment program, funds sponsored by Blue Owl, including the Blue Owl Credit, Real Assets, and GP Strategic Capital Funds (collectively the “Blue Owl Funds”) as well as investment held by the Blue Owl Funds.
An investment in the Fund or other investment vehicle entails a high degree of risk. Investors should consider all of the risk factors set forth in the “”Risk Factors and Special Considerations” and “Conflicts of Interest” sections of the prospectus, each of which could have an adverse effect on the Fund or other investment vehicle and on the value of Interests.
An investment in the Fund or other investment vehicle is suitable only for sophisticated investors and requires the financial ability and willingness to accept the high risks and lack of liquidity associated with an investment in the Fund or other investment vehicle. Investors in the Fund or other investment vehicle must be prepared to bear such risks for an indefinite period of time. There will be restrictions on transferring interests in the Fund or other investment vehicle, and the investment performance of the Fund or other investment vehicle may be volatile. Investors must be prepared to hold their interests in the Fund or other investment vehicle until its dissolution and should have the financial ability and willingness to accept the risk characteristics of the Fund's or other investment vehicle’s investments.
There can be no assurances or guarantees that the Fund's or other investment vehicles investment objectives will be realized that the Fund's or other investment vehicle investment strategy will prove successful or that investors will not lose all or a portion of their investment in the Fund. Furthermore, investors should not construe the performance of any predecessor funds or other investment vehicle as providing any assurances or predictive value regarding future performance of the Fund.
Furthermore, investors should not construe the performance of any predecessor funds or other investment vehicle as providing any assurances or predictive value regarding future performance of the Fund.
The views expressed and, except as otherwise indicated, the information provided are as of the report date and are subject to change, update, revision, verification, and amendment, materially or otherwise, without notice, as market or other conditions change. Since these conditions can change frequently, there can be no assurance that the trends described herein will continue or that any forecasts are accurate. In addition, certain of the statements contained in this material may be statements of future expectations and other forward-looking statements that are based on the current views and assumptions of Blue Owl and involve known and unknown risks and uncertainties (including those discussed below) that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. These statements may be forward-looking by reason of context or identified by words such as “may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue” and other similar expressions. Neither Blue Owl, its affiliates, nor any of Blue Owl’s or its affiliates' respective advisers, members, directors, officers, partners, agents, representatives or employees or any other person (collectively the “Blue Owl Entities”) is under any obligation to update or keep current the information contained in this document.
This material contains information from third party sources which Blue Owl has not verified. No representation or warranty, express or implied, is given by or on behalf of the Blue Owl Entities as to the accuracy, fairness, correctness or completeness of the information or opinions contained in this material and no liability whatsoever (in negligence or otherwise) is accepted by the Blue Owl Entities for any loss howsoever arising, directly or indirectly, from any use of this material or its contents, or otherwise arising in connection therewith.
All investments are subject to risk, including the loss of the principal amount invested. These risks may include limited operating history, uncertain distributions, inconsistent valuation of the portfolio, changing interest rates, leveraging of assets, reliance on the investment advisor, potential conflicts of interest, payment of substantial fees to the investment advisor and the dealer manager, potential illiquidity, and liquidation at more or less than the original amount invested. Diversification will not guarantee profitability or protection against loss. Performance may be volatile, and the NAV may fluctuate.
Performance information
Where performance returns have been included in this material, Blue Owl has included herein important information relating to the calculation of these returns as well as other pertinent performance related definitions.
NAV: We intend to sell our shares at a net offering price that we believe reflects the net asset value per share as determined in accordance with the Company’s share pricing policy.
This webpage is for informational purposes only and is not an offer or a solicitation to sell or subscribe for any fund or other investment vehicle and does not constitute investment, legal, regulatory, business, tax, financial, accounting, or other advice or a recommendation regarding any securities of Blue Owl, of any fund or investment vehicle managed by Blue Owl, or of any other issuer of securities. Only a definitive offering document (i.e.: Prospectus or Private Placement Memorandum or other offering material) can make such an offer. Neither the Securities and Exchange Commission, 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, Private Placement Memorandum or other offering material is truthful or complete. Any representation to the contrary is a criminal offense. Within the United States and Canada, securities are offered through Blue Owl Securities LLC, member of FINRA/SIPC, as Dealer Manager.