Blue Owl Capital, a prominent investment management firm, recently made headlines with the announcement of a significant transaction involving three of its business development companies (BDCs). The sale, totaling $1.4 billion of direct lending investments, represents a strategic move aimed at providing liquidity to shareholders while optimizing the portfolios of the BDCs involved.
The transaction, finalized on February 18, 2026, saw Blue Owl Capital Corporation II (OBDC II), Blue Owl Technology Income Corp. (OTIC), and Blue Owl Capital Corporation (OBDC) sell partial assets at fair value to four leading North American public pension and insurance investors. The sale, valued at 99.7% of par value as of February 12th, is expected to result in capital returns and debt reduction for the BDCs.
Craig Packer, Chief Executive Officer of Blue Owl’s BDCs, expressed confidence in the transaction, highlighting the strong demand from institutional investors and the benefits it brings to the funds’ shareholders. Kroll, LLC provided fairness opinions for the sale, ensuring transparency and adherence to fair value standards.
Of particular significance is the impact on OBDC II, a non-traded BDC formed in 2016. The $600 million asset sale will enable the fund to deliver a substantial return of capital to shareholders, exceeding previous distributions. Subject to board approval, OBDC II plans to distribute up to $2.35 per share, representing approximately 30% of net asset value as of December 31, 2025.
Logan Nicholson, President of OBDC II and OBDC, emphasized the liquidity event’s significance for the fund and highlighted the continued strength and diversity of the portfolio. Additionally, OBDC and OTIC stand to benefit from the sale, with opportunities for portfolio optimization and strategic reinvestment.
The transaction underscores Blue Owl Capital’s commitment to value creation and prudent portfolio management. It follows the firm’s robust performance in the fourth quarter of 2025, where assets under management exceeded $307 billion, and capital commitments reached a record $56 billion for the year.
Looking ahead, Blue Owl Capital remains focused on delivering value to its investors and maintaining its strong track record in underwriting and risk management. The successful completion of the $1.4 billion transaction marks another milestone for the firm and sets the stage for continued growth and success in the future.
