Blue Owl Capital Inc.'s Business Development Companies (BDCs) have bought back $85 million worth of their shares, an effort to stabilize share values and signal confidence in their portfolios amidst broader market apprehension regarding private credit. This move comes as some investors have expressed unease about the valuations of loans within the private credit market, especially those tied to the technology sector.
Separately, Blue Owl's credit platform has a history of honoring all investor buyback requests since its inception in 2017, totaling approximately $3.6 billion. In particular, Blue Owl Credit Income Corp. (OCIC) completed a quarterly share repurchase of roughly $1.01 billion, exceeding its initial target and representing 5.2% of its shares outstanding as of September 30, 2025. This was a 217% increase compared to its Q3 2025 tender offer. Concurrently, Blue Owl Technology Income Corp. (OTIC) redeemed $527.2 million in shares by January 8, 2026, satisfying all requests and amounting to 15.4% of its outstanding shares as of September 30, 2025, which was a 484% increase from its Q3 2025 tender offer. Both companies issued non-interest bearing promissory notes for these repurchases.
Blue Owl executives have maintained that their software lending portfolio is in "pristine" condition, with strong performance and no significant losses. The company's co-CEO, Marc Lipschultz, noted that these loans typically have a low 30% loan-to-value ratio, indicating a substantial equity cushion protecting the debt. This reassurance aims to mitigate concerns that have seen Blue Owl's shares fluctuate, including a significant surge after Wall Street bank chiefs downplayed fears surrounding the $1.8 trillion private credit market and its tech exposure.
As of the end of 2025, OCIC's debt investment par value stood at $34.2 billion, diversified across 352 companies and 30 end markets, with 92% backed by private equity sponsors. The underlying borrowers are primarily large, market-leading businesses with an average revenue of $1.2 billion and $296 million in EBITDA. OCIC's portfolio consists of 93% senior secured loans and a 40% loan-to-value ratio. Full-year 2025 inflows were approximately $6.9 billion, contributing to total inflows of $21.5 billion since its inception in 2021. OCIC's Class I shares delivered a 7.9% return for the 2025 calendar year, with an annualized inception-to-date return of 9.7%.
