OTF - Blue Owl Technology Finance Corp.
Blue Owl Technology Finance is a tech-focused BDC trading at a deep 33% discount to NAV amid portfolio headwinds. OTF's 12.7% dividend yield is not currently covered by adjusted net investment income, relying instead on spillover income. Net realized losses and software sector exposure have pressured NAV and returns, but management continues to deploy capital into new investments.
We take a look at the action in business development companies through the second week of May and highlight some of the key themes we are watching. BDCs underperformed the income market, with several names near 1-year lows despite stable NAV returns and manageable non-accruals across the sector. Q1 median total NAV return is -0.2%, indicating sector resilience despite credit spread pressures, especially in software portfolios.
Blue Owl Technology Finance Corp. provides capital solutions to technology and software firms, focusing on lending and equity investments.
Blue Owl Technology Finance Corp. (OTF) Q1 2026 Earnings Call Transcript
Blue Owl Technology Finance NYSE: OTF reported first-quarter 2026 adjusted net investment income of $0.29 per share and net asset value of $16.49 per share, as management said market volatility around software and technology assets weighed on valuations even as underlying credit performance remained strong.
LOS ANGELES, May 13, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Blue Owl Technology Income Corp. (“Blue Owl Technology Income” or “the Company”) (OTIC) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
LOS ANGELES, May 13, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Blue Owl Technology Finance Corp. (“Blue Owl Technology Finance” or “the Company”) (NYSE: OTF) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
Blue Owl Technology Finance Corp. (OTF) has experienced a market decline far exceeding its BDC peers, despite resilient fundamentals. I view OTF as the most compelling bargain in the externally managed BDC space, given the divergence between price action and underlying performance. Recent Q1 2026 results reinforce my conviction, prompting me to make OTF one of my largest externally managed BDC holdings.
BDC sector Q1 2026 earnings reveal widespread NAV contractions, impacting both discounted and premium BDCs. Despite NAV declines and negative price reactions, these adjustments are logical and not a signal to exit the BDC space. Price-to-NAV ratios remain attractive, with several BDCs trading at significant discounts post-earnings.
Blue Owl Technology Finance (OTF) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.41 per share a year ago.
NEW YORK, May 6, 2026 /PRNewswire/ -- Blue Owl Technology Finance Corp. (NYSE: OTF) ("OTF" or the "Company") today announced financial results for its first quarter ended March 31, 2026. FIRST QUARTER 2026 HIGHLIGHTS First quarter GAAP net investment income ("NII") per share of $0.37 First quarter adjusted NII per share of $0.29(1) Dividends declared for the second quarter were $0.40 per share, including a base dividend of $0.35 per share and a special dividend of $0.05 per share declared in connection with the listing Net asset value per share decreased to $16.49, as compared with $17.33 last quarter, primarily driven by unrealized losses from the impact of credit spread widening on the portfolio New investment commitments for the first quarter were $1.7 billion and sales and repayments were $1.1 billion, as compared with $2.3 billion of new investment commitments and $0.9 billion of sales and repayments for the three months ended December 31, 2025 Net debt-to-equity ended at 0.85x, as compared with 0.75x as of December 31, 2025 Investments on non-accrual represented 0.3% and 0.1% of the portfolio at cost and fair value, respectively, as compared with 0.4% and 0.2% as of December 31, 2025 OTF repurchased approximately $50.2 million of OTF common stock, which was accretive to net asset value per share in the first quarter Approximately 80% of each pre-listing shareholder's position has been released from lock-up, with two remaining releases scheduled in equal tranches of approximately 10.6% each month until June 12, 2026 "First quarter volatility in technology markets drove meaningful spread widening and pressured valuations across OTF's portfolio, reflecting broader market dynamics rather than underlying credit trends," said Craig W.
The Putnam BDC Income ETF (NYSE:PBDC) was designed to give yield-hungry investors a one-ticket basket of business development companies.
SaaS-related fears have driven significant discounts in BDCs, especially those with higher SaaS exposure. Market concerns center on AI disruption, weak SaaS recovery rates, and skepticism around leveraged SaaS LBOs. I believe SaaS default fears are overblown; established SaaS firms with strong moats and cash flow are more resilient.
LOS ANGELES, April 28, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Blue Owl Technology Finance Corp. ("Blue Owl Technology Finance" or "the Company") (NYSE: OTF) for violations of the securities laws.
LOS ANGELES, April 28, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm , a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Blue Owl Technology Finance Corp. (“Blue Owl Technology Finance” or “the Company”) (NYSE: OTF ) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
LOS ANGELES, April 28, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Blue Owl Technology Income Corp. (“Blue Owl Technology Income” or “the Company”) (OTIC) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
Cwm LLC boosted its position in Blue Owl Technology Finance Corp. (NYSE: OTF) by 177.1% in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 92,208 shares of the company's stock after purchasing an additional 58,935 shares during the quarter. Cwm LLC's holdings in
BDCs have become my area of expertise. While my BDC investment journey has so far been successful, there have been several painful mistakes in the process. In this article, I share my 3 biggest mistakes that have clearly improved my overall BDC investment game.
BDCs have fallen out of favor. Given the elevated risks (at least as suggested by headlines), most durable income investors consider only top-quality BDC picks. While this coincides with my philosophy, the issue is that the return potential is automatically lower here.
We take a look at the action in business development companies through the first week of April and highlight some of the key themes we are watching. BDCs rallied strongly despite persistent poor market sentiment. Regulatory scrutiny is rising, but material changes are unlikely; public BDCs managing sub-investment grade assets face minimal direct threat from current discussions.