Blue Owl Technology Income Corp (OTIC) Deep Dive
What's inside, what to watch, and how the money is made
Everybody’s watching OBDC II. We are taking a different flight path today.
Today’s case study focuses instead on Blue Owl’s Technology Income Corp (OTIC), a widely distributed BDC that has raised billions over the past few years.
We’ll cover the usual:
What’s actually in the portfolio
How the fund makes money (and whether distributions are covered by cash net investment income), and the fee structure
What fundraising and redemptions have looked like - and, most importantly, what to watch.
There are also some interesting tidbits:
Unitranche loans
❓WHY is nobody talking about them? Here’s your primer:“Second lien senior secured” debt (senior to what? third lien? equity?)
And, my personal favorite: an LP investment in a Thoma Bravo Regulation D vehicle sitting on the books:
As one social media commenter said:
🎶 “Relax,” said the PM, “we are programmed to receive… You can check the IRR anytime you like — but you can never leave.” 🎶
If you missed OBDC II story, it’s worth reading:
Disclosure: This case study is provided for educational purposes only and does not constitute an offer, solicitation, or recommendation to buy or sell any security or financial instrument. Nothing herein should be construed as legal, tax, investment, or financial advice. All opinions are my own and may change without notice. Readers should perform their own due diligence and consult qualified professionals before making any investment decisions.
The Pitch
Blue Owl Technology Income Corp. (formerly Owl Rock Technology Income Corp.) is a non-traded business development company formed in June 2021 and managed by Blue Owl Technology Credit Advisors II LLC, an affiliate.
It filed its first quarterly report in 1Q22 with $151 million in assets. As of 9/30/25, net assets stood at $3.3 billion.
The mandate is straightforward: invest at least 80% of total assets in “technology-related” companies. In practice, that means predominantly senior secured lending to software and tech-enabled businesses.
👉 Here’s why you want to watch liqidity. Like a hawk:
Fees
1️⃣ Base Management Fee
1.25% annually, calculated monthly in arrears, based on the average net assets over the prior two months.
For the nine months ended 9/30/25:
👉 Management fees totaled ~$30.3 million (net of a ~$40k waiver tied to an affiliated consulting arrangement).
2️⃣ Performance Based Incentive Fee
12.5% of pre-incentive fee net investment income.
There is a hurdle:
A 1.25% quarterly preferred return (5% annualized) on NAV.
There’s also a catch-up provision: between 1.25% and 1.43% quarterly return, the Adviser receives 100% of incremental income. After that, the 12.5% split resumes.
For the nine months ended 9/30/25:
👉 Income incentive fees totaled ~$31.7 million.
3️⃣ Capital Gains Incentive Fee
12.5% of cumulative realized capital gains, net of all realized capital losses and unrealized depreciation.
For the nine months ended September 30, 2025:
👉 Capital gains incentive fees: ~$110,000 (of that, $1.4M in Q3).
❗️The capital gains fee is accrued on unrealized gains but not paid until gains are realized. That’s more conserviative than some funds we’ve covered.
4️⃣ Servicing Fees (The Share-Class Tax)
Before we get into the weeds, let me remind you that you need to read footnotes:
🔎 What’s in the Fund
OTIC is predominantly a first-lien senior secured lender to technology and software companies. Here's the breakdown: