Blue Owl Capital Reports $1.6 Billion Investment Income for 2024, Merger Completed with Blue Owl Capital III

Blue Owl Capital Corporation (OBDC) reported total investment income of $1.6 billion for the year ended December 31, 2024, a slight increase from $1.58 billion in 2023. This rise was primarily due to increased dividend income and other income, partially offset by a decrease in the yield of the debt investment portfolio from 11.9% to 10.4%. Net investment income after taxes reached $741.1 million in 2024, down from $753.6 million in 2023. The company's net asset value per share was $15.26 as of December 31, 2024.

Significant changes compared to the previous fiscal year include a decrease in net investment income after taxes and a net unrealized loss of $50.2 million, contrasting with a net unrealized gain of $92.9 million in 2023. The decrease in net investment income was primarily attributed to increased interest expense resulting from a higher average interest rate and increased daily average borrowings. The company's total assets were $13.9 billion as of December 31, 2024, with total outstanding debt of $7.5 billion.

A key operational development was the completion of the merger with Blue Owl Capital Corporation III (OBDE) on January 13, 2025. On a pro forma basis, the combined company showed increased total portfolio investments ($17.4 billion), total net assets ($7.8 billion), and total debt outstanding ($10.1 billion). The merger also resulted in a more diversified portfolio with increased first-lien exposure and a lower non-accrual rate (0.3%). As of December 31, 2024, OBDC held investments in 227 portfolio companies, with an average investment size of approximately $58.1 million.

The company's investment strategy focuses on U.S. middle-market companies, with a portfolio composition of 75.6% first-lien debt, 5.4% second-lien debt, 2.3% unsecured debt, 2.8% preferred equity, 11.7% common equity, and 2.2% joint ventures as of December 31, 2024. The largest industry sector in the portfolio was internet software and services (11.1%). OBDC's investment process involves extensive due diligence and active portfolio monitoring, with a focus on downside protection and capital preservation.

Looking ahead, OBDC anticipates generating future cash flow from the issuance of common stock and debt securities, as well as cash flows from operations. The company intends to distribute substantially all of its available earnings quarterly, as determined by the board of directors. However, the filing includes a cautionary statement regarding forward-looking statements, highlighting various economic and market risks that could materially affect the company's future performance.