Blue Owl Capital Corporation (1D6)

Overview

Blue Owl Capital Corporation operates as a business development company, focusing on direct and fund of fund investments. This entity centers its strategic investments in various forms of debt instruments as well as equity-related securities across a broad spectrum of industries. It primarily aims to serve middle market and upper middle market companies situated in the United States, targeting businesses with EBITDA ranging from $10 million to $250 million annually or those with annual revenue between $50 million and $2.5 billion at the time of investment. Blue Owl Capital Corporation looks for investment opportunities where it can play a vital role in growth trajectories, including scenarios such as acquisitions, market or product expansions, refinancings, and recapitalizations. The company positions itself to make significant financial contributions, with investments usually falling within the $20 million to $250 million range.

Products and Services

Blue Owl Capital Corporation offers a diverse range of financial products and services designed to suit the varied needs of middle to upper middle market companies. These include:

• Senior Secured and Unsecured Loans

Providing companies with direct access to capital through structurally flexible loans, these financial tools are meant for businesses looking to secure funding while minimizing equity dilution. These loans may either be secured, offering collateral as a form of security, or unsecured, based primarily on the borrower's creditworthiness.

• Subordinated Loans or Mezzanine Financing

These forms of financing are particularly useful for companies in need of capital beyond what senior secured loans can provide. Subordinated loans or mezzanine financing typically come with higher interest rates given their subordinate status in the event of a default, but also offer potential equity conversion options or warrants.

• Equity-Related Securities

This includes investments in warrants and preferred stocks, granting Blue Owl Capital Corporation potential ownership or preferential returns in client companies. Such instruments are critical for businesses seeking investment without immediate and direct equity dilution.

• Preferred Equity Investments

Through preferred equity investments, the company targets providing capital that sits between traditional equity and debt, offering a fixed (often cumulative) dividend, and positioning itself favorably in the capital structure for enhanced security.

• First Lien, Unitranche, and Second Lien Term Loans

These loan types allow Blue Owl Capital Corporation to customize its lending approach based on the security and priority levels of the borrower's obligations. Whether offering more secure first lien loans, flexible unitranche loans that combine senior and subordinated debt structures, or riskier second lien loans, the firm adjusts its strategies to meet diverse client needs.

• Common Equity Investments

Focusing on acquiring stakes in companies, common equity investments enable Blue Owl Capital Corporation to participate directly in the growth and success of its portfolio companies, reinforcing its commitment to fostering long-term, strategic partnerships.