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Blue Owl Technology Finance Corp’s Listing on NYSE

Highlights

  • On June 3, 2025, Blue Owl Technology Finance Corp. (“OTF”), formerly Owl Rock Technology Finance Corp., announced its intention to list its common shares on the New York Stock Exchange (“NYSE”).

  • On June 12, 2025, OTF commenced trading at an opening price of $17.15 per share. The most recent net asset value for OTF’s common stock was calculated as of March 31, 2025 at $17.09 per share.

  • OTF is a business development company ("BDC") focused on investing in U.S. upper middle-market technology companies. OTF was formed in 2018 and raised capital through private offerings between August 2018 and November 2021, raising gross proceeds of approximately $3.1 billion, excluding its DRIP.

On June 3, 2025, OTF, a BDC focused on investing in U.S. upper middle-market technology companies, announced its intention to list its common shares on the NYSE under the ticker symbol “OTF.” The shares began trading on the NYSE on June 12, 2025 at $17.15 per share. In connection with the listing , OTF’s board: (i) approved a repurchase program for purchases of up to $200 million of outstanding common stock in open-market transactions, which is expected to be in effect for 18-months from the listing or until the aggregate repurchase amount that has been approved has been expended; (ii) declared five special dividends, payable on a quarterly basis through October 2026; (iii) waived the lock-up restrictions with respect to 23.3 million shares of common stock, or 5% of each shareholder’s position, such that a pro rata portion of stock held by each shareholder will be freely tradeable; and (iv) approved an amended and restated dividend reinvestment plan, which became effective upon the listing. Additionally, $5.0 million of fees and expenses associated with the listing will be reimbursed by OTF’s external adviser, Blue Owl Technology Credit Advisors LLC, an indirect affiliate of Blue Owl Capital, Inc.

OTF formed in 2018 and conducted private offerings of common stock between August 2018 and November 2021, raising gross proceeds of approximately $3.1 billion, excluding its DRIP. On March 24, 2025, OTF acquired Blue Owl Technology Finance Corp. II (“OTF II”) in an all-stock transaction. OTF II raised $5.4 billion through private offerings between December 2021 and January 2025, and had a portfolio totalling $5.4 billion across 125 portfolio companies prior to the merger with OTF. OTF II stockholders received 0.9113 shares of OTF common stock for each share of OTF II share owned, which was based on each fund’s respective NAV per share as of March 23, 2025. After the completion of the merger, former OTF II shareholders owned approximately 54% of the combined company. As of March 31, 2025, OTF’s portfolio totaled $12.1 billion across 181 portfolio companies, with approximately 78% of investments being in first lien senior secured debt.

The following table presents a summary of estimated hypothetical returns for investors in OTF in connection with the listed public offering, based on the following scenarios, assuming an exit on the listing date of June 12, 2025, at: (i) the opening price of $17.15 per share; (ii) 20% below the opening price; and (iii) 20% above the opening price:

OTF hypothetical returns for Blue Owl Technology Finance Corp. non-traded BDC investors

The following table presents a summary of estimated hypothetical returns with respect to the listing for investors from OTF II’s offering:

OTF hypothetical returns for Blue Owl Technology Finance Corp. II non-traded BDC investors

Publicly traded BDCs (as measured through the S&P BDC Index) have fallen by -0.66% year-to-date through the end of May and, according to CEF Advisors, BDCs are trading at an average discount to NAV of 10.27% as of June 23, 2025. OTF’s existing shareholders are generally subject to restricted periods or “lock-ups” ranging between 180 and 365 days after the listing. During these lock-up periods, these shareholders will be unable to redeem or sell their shares, except for the pro rata portion released via the board’s waiver discussed above.

Sources

Disclaimer: The information contained in this research note has been assembled using publicly available information. While SK Research and Due Diligence, LLC (“SKRADD”) believes it to be reliable, there is no guarantee that all of the information contained in this research note is or will be accurate. This research note does not constitute investment advice and is intended for informational purposes only. This research note does not constitute an offer to sell or the solicitation of an offer to purchase, nor should it be considered a recommendation of any security referenced herein. This publication is copyrighted, and no person is authorized to make use of the information presented herein without the express written permission of SKRADD. SKRADD is under common ownership and control with Snyder Kearney, LLC, a law firm that conducts due diligence reviews of alternative investment programs, including non-traded real estate investment trusts.

©2025 SK Research and Due Diligence, LLC.

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