Blue Owl Capital BDCs Sell $1.4 Billion in Direct Lending Assets, Providing Liquidity to Investors and Opportunity for Portfolio Optimization

Key Takeaways:

• Three BDCs managed by Blue Owl Capital announced a $1.4 cardinal merchantability of partial assets astatine just worth arsenic of February 12th, equivalent to 99.7% of par value

• Proceeds from the merchantability supply liquidity to OBDC II shareholders, arsenic intended since the fund’s enactment successful 2016, portion enabling portfolio optimization for OBDC and OTIC.

• Executives person underscored the portfolio’s spot and the underlying recognition quality.

By Exec Edge Editorial Staff

Three concern improvement companies managed by Blue Owl Capital announced connected Feb. 18, 2026, that they person entered into abstracted agreements to merchantability a full of $1.4 cardinal of nonstop lending investments to 4 starring North American nationalist pension and security investors astatine just value. Proceeds are earmarked for superior returns and indebtedness reduction.

The merchantability covers indebtedness concern commitments of $600 cardinal from Blue Owl Capital Corporation II (OBDC II), $400 cardinal from Blue Owl Technology Income Corp. (OTIC) and $400 cardinal from Blue Owl Capital Corporation (OBDC), according to a property merchandise announcing the transaction. Those figures correspond to astir 34%, 6% and 2% of full concern commitments astatine each BDC, respectively.

Kroll, LLC provided fairness opinions to each fund’s committee of directors. The investments were valued arsenic of Feb. 12, 2026, and sold astatine just value, equivalent to 99.7% of par worth crossed each 3 vehicles.

“We saw beardown request to acquisition these investments astatine just worth from highly blase organization investors, with involvement acold exceeding the worth of the investments we yet chose to sell,” said Craig Packer, Chief Executive Officer of Blue Owl’s BDCs. “This transaction underscores the assurance that large, experienced buyers person successful our nonstop lending level and has meaningful benefits for each shareholders of these funds.”

OBDC II Capital Returns

The transaction is astir meaningful for OBDC II. The money is simply a non-traded BDC formed successful 2016, anterior to the advent of perpetually offered, non-traded BDCs, and it offered liquidity done quarterly tender offers. The $600 cardinal plus merchantability allows the money to present a instrumentality of superior acold exceeding those quarterly tender windows, with the planned organisation astir six times the size of the 5% tender antecedently scheduled for the archetypal quarter.

Subject to committee approval, OBDC II intends to wage a instrumentality of superior organisation to shareholders of up to $2.35 per share, oregon astir 30% of nett plus worth arsenic of Dec. 31, 2025, connected oregon earlier March 31, 2026.

“Today’s announcement reinforces the rigor of our valuation process and the prime of our nonstop lending investments,” said Logan Nicholson, President of OBDC II and OBDC. “At this signifier for OBDC II, we are pleased to supply a important liquidity lawsuit astatine just worth portion inactive maintaining a diversified portfolio with beardown net potential.”