Blue Owl Technology Income Corp. (OTIC) issued a shareholder update on October 2, 2026, detailing the fund's performance and financial position as of August 31, 2026. The company reported that market conditions for private credit and software have improved, resulting in strong quarter-to-date performance and stable tender results.
As of August 31, 2026, OTIC generated a total return of 2.1% for Class I shareholders during the quarter. Since its inception in May 2022, the fund has achieved an annualized total return of 9.0% for Class I shareholders, outperforming public credit benchmarks, including leveraged loans (+205 basis points), high yield (+230 basis points), and traditional bonds (+680 basis points).
The fund maintains a defensively constructed portfolio, consisting of 91% senior secured loans and a weighted-average loan-to-value ratio of 40%. As of June 30, 2026, the portfolio had limited non-accruals at 0.3% of fair value. The portfolio companies are predominantly large, market-leading businesses with a weighted-average revenue of $1.1 billion and EBITDA of $358 million, growing at high single-digit rates year-over-year.
Tender demand remained elevated relative to the broader non-traded BDC industry. Estimated repurchase requests totaled $1.1 billion, or 39.0% of shares outstanding as of June 30, 2026. The company plans to fulfill its 5% tender offer on a pro rata basis, which will represent approximately 13% of total shares tendered. As of August 31, 2026, OTIC had $1.2 billion in available liquidity, representing nearly 9 times the size of the third-quarter tender offer.
Looking ahead, the fund is well-positioned to benefit from the current rate environment. With 98% of its debt portfolio in floating-rate loans, OTIC anticipates that higher base rates will support portfolio yields. The company noted that the Federal Reserve implemented a 25 basis point rate hike in mid-September and expects potential further increases by year-end.
