Investment Strategy and Portfolio - As of September 30, 2025, Blue Owl Capital Corporation has originated $174.72 billion in aggregate principal amount of investments, with $170.63 billion retained by the company or its affiliates [531]. - The average debt investment size in portfolio companies was approximately $66.5 million based on fair value, with 94.4% of the total debt portfolio having a weighted average annual revenue of $1.02 billion and a weighted average annual EBITDA of $229 million [536]. - The company focuses on investing in upper middle market businesses, defined as those generating over $50 million in EBITDA annually [532]. - The investment strategy includes direct origination of loans to institutionally-backed companies, with a target loan-to-value ratio of 50% or below [532]. - Blue Owl Capital Corporation's portfolio companies had an average interest coverage of 1.9x and an average net loan-to-value of 42% as of September 30, 2025 [536]. - The company has a diversified investment strategy that includes senior secured loans, subordinated loans, and equity-related securities [531]. - The investment portfolio is expected to be predominantly composed of directly originated debt and income-producing securities [533]. - The company focuses on investing in upper middle-market businesses in non-cyclical industries, including healthcare, business services, technology, and insurance brokerage [562]. - The average investment size in the portfolio is less than 0.5%, with the top ten investments representing less than 25% of the total portfolio [563]. - Approximately 97.4% of debt investments bear interest at a floating rate, which is expected to benefit earnings in a prolonged higher rate environment [541]. Financial Performance - The net investment income after taxes for the three months ended September 30, 2025, was $190.1 million, compared to $184.9 million for the same period in 2024 [592]. - The total investment income for the nine months ended September 30, 2025, was $1,403.5 million, up from $1,202.4 million in 2024 [592]. - Total investment income increased to $453.1 million for the three months ended September 30, 2025, compared to $406.0 million for the same period in 2024, primarily due to higher interest income [597]. - Interest income from investments rose to $359.9 million for the three months ended September 30, 2025, up from $307.7 million in the prior year [596]. - The net change in unrealized gains (losses) for the three months ended September 30, 2025, was a loss of $65.6 million, compared to a gain of $5.8 million in the prior year [608]. - Adjusted, non-GAAP net increase in net assets from operations was $128.2 million for the three months ended September 30, 2025 [595]. Debt and Leverage - The current target leverage ratio is set at 0.90x-1.25x, with net leverage reported at 1.22x debt-to-equity [561]. - The weighted average total cost of debt as of September 30, 2025, was 6.2% [630]. - The total debt of the company amounted to $12,864.6 million, with outstanding principal of $9,627.3 million and net carrying value of $9,528.5 million [648]. - The company’s revolving credit facility has an aggregate principal of $3,900 million, with $1,222 million outstanding as of September 30, 2025 [648]. - The average daily borrowings for the nine months ended September 30, 2025, were $9,920.2 million, compared to $7,509.1 million in 2024, indicating a 32.2% increase [649]. - The company may seek to retire, repurchase, or exchange debt securities depending on market conditions and liquidity [630]. Investment Commitments and Returns - Total new investment commitments for the three months ended September 30, 2025, reached $1,338,001 thousand, compared to $1,151,667 thousand in 2024 [568]. - The principal amount of new investments funded totaled $963,441 thousand in 2025, down from $1,080,803 thousand in 2024 [568]. - The realized gross internal rate of return (IRR) on exited investments since 2016 is approximately 10%, based on total capital invested of $20.27 billion and total proceeds of $24.84 billion [621]. - The company generated undistributed taxable earnings "spillover" of approximately $0.31 per share as of September 30, 2025 [603]. Shareholder Distributions and Stock Activity - For the nine months ended September 30, 2025, the company declared a total distribution of $0.37 per share for three separate dividends, with supplemental dividends of $0.02, $0.01, and $0.05 [639]. - The company repurchased 4,090,138 shares of common stock for approximately $50.0 million under the 2022 Stock Repurchase Program, which ended on May 2, 2024 [645]. - The company distributed a total of 998,642 shares as part of the dividend reinvestment plan for the dividend declared on February 18, 2025 [644]. - The supplemental dividend declared on August 5, 2025, resulted in the issuance of 51,572 shares [644]. - The company’s distributions may exceed earnings, indicating a potential return of capital to shareholders [639]. Regulatory and Management Structure - The company is managed by Blue Owl Credit Advisors LLC, which oversees day-to-day operations and investment management [520]. - Blue Owl Capital Corporation is regulated as a Business Development Company (BDC) and is required to invest at least 70% of its assets in qualifying assets [529]. - The company has received exemptive relief from the SEC to co-invest with affiliates under certain conditions, enhancing its investment flexibility [526]. Market Environment and Opportunities - The middle market lending environment is seen as providing opportunities for attractive risk-adjusted returns, with approximately 200,000 U.S. middle market companies identified [551]. - The weighted average spread of total floating rate debt investments was reported at 5.7% [560]. - The weighted average EBITDA of borrowers increased to approximately $229 million in 2025, up from $115 million in 2021 [564]. - Average revenue of borrowers rose to approximately $1 billion in 2025, compared to $500 million in 2021 [564]. - The average hold size of new investments in Blue Owl's direct lending strategy is approximately $350 million, up from $200 million in 2021 [564].

Core Viewpoint - The merger between Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation II (OBDC II) aims to create a stronger, more efficient business development company (BDC) with enhanced scale and cost efficiencies, positioning OBDC as the second largest publicly traded BDC by total assets [1][2]. Transaction Details - The merger agreement has been unanimously approved by the boards of both companies and is subject to shareholder approvals and customary closing conditions [1][9]. - Shareholders of OBDC II will receive newly issued shares of OBDC based on a predetermined exchange ratio, with no fractional shares issued [3][4]. - The merger is expected to close in the first quarter of 2026, pending necessary approvals [9]. Financial Impact - The pro forma investment portfolio of OBDC is projected to increase by $1.7 billion to approximately $18.9 billion across 239 portfolio companies [6]. - The combined company will maintain 80% of senior secured investments, with only 1.3% of pro forma investments at fair value on non-accrual [6]. - The merger is anticipated to generate approximately $5 million in operational cost savings in the first year, enhancing overall financial performance [6]. Strategic Benefits - The merger simplifies Blue Owl's BDC structure and enhances liquidity for shareholders, potentially attracting a broader investor base [6]. - The transaction is expected to improve the cost of debt and financing terms over time, benefiting shareholders through lower expenses and higher asset yields [6]. Management and Governance - The combined entity will continue to be externally managed by Blue Owl Credit Advisors LLC, with all current OBDC officers and directors retaining their roles [8]. - A new stock repurchase program has been approved, allowing OBDC to repurchase up to $200 million of its common stock over the next 18 months [8].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Blue Owl Capital Corporation despite an increase in revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Blue Owl Capital Corporation is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decrease of 17% [3]. - Revenues are projected to be $461.57 million, which is an increase of 13.7% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.52% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Blue Owl Capital is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.85% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [9][10]. - Blue Owl Capital's current Zacks Rank is 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Blue Owl Capital was expected to post earnings of $0.39 per share but actually reported $0.40, resulting in a surprise of +2.56% [13]. - Over the past four quarters, the company has only surpassed consensus EPS estimates once [14]. Industry Comparison - Oportun Financial Corporation, another player in the financial services industry, is expected to report earnings of $0.26 per share, indicating no change year-over-year, with revenues expected to decline by 4.5% [19]. - Oportun Financial's consensus EPS estimate has been revised down by 3% in the last 30 days, leading to an Earnings ESP of -13.73% [20].

Core Viewpoint - High-yield alternative asset management firms are facing stock price pressure due to a series of high-profile bankruptcies raising concerns about bad debts, but Goldman Sachs sees this as a potential "buying opportunity" for Apollo Global Management, Ares Management, and Blue Owl Capital [1][2] Group 1: Market Sentiment and Stock Performance - The recent bankruptcies of First Brands and Tricolor have heightened tension in the debt market, with JPMorgan CEO Jamie Dimon warning that seeing one "cockroach" often indicates more to come [1] - Year-to-date, Apollo Global Management's stock has dropped approximately 13%, Ares Management by about 18%, and Blue Owl Capital nearly 30% [1] - Goldman Sachs notes that the current risk-reward ratio for these three companies is becoming increasingly attractive, maintaining a "buy" rating for Apollo and Ares, while giving Blue Owl a "neutral" rating [1] Group 2: Default Risks and Private Credit - Current market focus on defaults is primarily on traditional bank-led syndicate loans rather than private credit, with non-performing loans in private credit at only about 1%, significantly lower than the 3%-4% peak during past downturns and 7%-8% during the financial crisis [1] - Even if defaults are controlled, asset management companies' stock prices may still be pressured by redemption pressures, which could weaken fee income [2] - Private credit funds typically have long lock-up periods, and retail funds often limit quarterly redemptions to 5% of assets, which helps stabilize management fees despite market fluctuations [2] Group 3: Valuation and Future Outlook - The private credit concept has been overly successful in the past three years, leading to inflated expectations and stock prices for asset management companies [2] - Despite potential pressures in 2025, these companies have significantly outperformed the S&P 500 over the past three years [2] - Current valuations reflect this reality, with Ares' forward P/E ratio over 24 times (up from 17 times three years ago), Apollo at 14 times (up from 8 times), and Blue Owl at 17 times (up from 14 times) [2] - The combination of manageable bad debts, limited redemptions, stable fee bases, and valuation corrections suggests that current pullbacks may present opportunities for long-term investors rather than signaling an end [2]

Core Insights - Blue Owl Capital Corporation (OBDC) is positioned strongly due to portfolio diversification, increasing investment income, and disciplined capital deployment [1] - The company closed Q2 with a portfolio valued at $16.9 billion across 233 portfolio companies [1] Growth Drivers for OBDC - Turbulent market conditions are creating opportunities in direct lending, focusing on first-lien, senior secured loans, and select private equity investments, which enhances diversification and reduces single-borrower risk [2] - Total investment income for the first half of 2025 increased by 19.4% year over year to $950.5 million, with net investment margins showing a gradual decline: 47.6% in 2023, 46.4% in 2024, and 44% in the first half of 2025 [2] Cash Flow Trends - Net operating cash flow reached $1.1 billion in the first half of 2025, a significant improvement from a net cash usage of $282.2 million a year earlier [3] - Free cash flow after dividends surged to approximately $751 million over the past 12 months [3] Shareholder Rewards - OBDC prioritizes shareholder rewards, offering a dividend yield above the industry average, complemented by quarterly extras [4] - In Q2, investors received a regular payout of 37 cents per share along with a 2-cent supplemental dividend [4] Earnings Performance - OBDC's earnings have surpassed the Zacks Consensus Estimate in one of the last four quarters, meeting expectations once and missing twice, with an average surprise of negative 2.2% [5] Key Concerns - OBDC has $9.2 billion in long-term debt against $359.5 million in cash and restricted cash as of June 30, 2025, with a long-term debt-to-capital ratio of 54.6%, higher than the industry average of 45.2% [6] - Return on capital is at 5%, below the industry average of 7.3%, indicating weaker efficiency in utilizing shareholder funds [6] Peer Performance - Competitors like Ares Capital Corporation (ARCC) and FS KKR Capital Corp. (FSK) are also active in the market [7] - Ares Capital originated $6.1 billion in gross investment commitments in the first half of 2025, although rising expenses are a concern [7] - FS KKR Capital, with a diversified portfolio of 218 companies across 23 industries, generated $398 million in total investment income in Q2 [8]

Core Viewpoint - Blue Owl Capital Corporation (NYSE: OBDC) is set to release its financial results for the third quarter ended September 30, 2025, on November 5, 2025, after market close, followed by a conference call on November 6, 2025, at 10:00 a.m. Eastern Time to discuss these results [1][2]. Financial Results Announcement - The financial results for the third quarter will be available on November 5, 2025, after market close [1]. - A conference call will take place on November 6, 2025, at 10:00 a.m. Eastern Time, accessible via webcast and phone [2]. Company Overview - Blue Owl Capital Corporation is a specialty finance company focused on lending to U.S. middle-market companies [3]. - As of June 30, 2025, OBDC had investments in 233 portfolio companies with an aggregate fair value of $16.9 billion [3]. - OBDC is regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Blue Owl Credit Advisors LLC [3].

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 1: Investment Strategy - The service emphasizes a premier income-focused investing approach, targeting opportunities that enhance portfolio income [1] - The investment strategy includes a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2: Financial Metrics - The article highlights the importance of the 'payback period' as a lesser-known financial metric, alongside more common metrics like ROI [2] - The focus is on defensive stocks with a medium- to long-term investment horizon [2]

Core Insights - Blue Owl Capital Corporation (NYSE: OBDC) operates as a business development company focused on generating earnings through a diverse portfolio of debt investments [1] - The company lends capital to businesses, aiming to create a hybrid investment strategy that combines growth and income [1] Company Overview - OBDC specializes in high-quality dividend stocks and other assets that offer potential for long-term growth [1] - The company utilizes a mix of Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1] Investment Strategy - The investment approach of OBDC is designed to boost income while maintaining a total return that aligns with the S&P [1]

Core Insights - Blue Owl Capital Corporation (NYSE: OBDC) operates as a business development company focused on generating earnings through a diverse portfolio of debt investments [1] - The company lends capital to businesses, aiming to create a hybrid investment strategy that combines growth and income [1] Company Overview - OBDC is characterized as a business development company that seeks to provide capital to various businesses [1] - The investment strategy includes a mix of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income [1] Investment Strategy - The company emphasizes a hybrid system that balances growth and income, aiming to achieve total returns comparable to traditional index funds like the S&P [1]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article emphasizes the importance of conducting personal research before making investment decisions [2] - It clarifies that the opinions expressed are personal and not professional investment advice [2][3]