Blue Owl Technology Income Corp.

Blue Owl Technology Income Corp. (OTIC) provided a detailed shareholder update addressing elevated tender activity during the first quarter of 2026. The company received tender requests totaling an estimated 40.7% of shares outstanding, driven by heightened negative sentiment toward the non-traded BDC asset class and AI-related disruption concerns regarding software credit exposures. In accordance with its fund structure, OTIC will fulfill the standard 5% quarterly tender offer, or $179 million, on a pro rata basis. This represents approximately 14% of total shares tendered. Management emphasized that this decision balances the interests of tendering and remaining shareholders.

Despite the elevated tender activity, OTIC reported modest net outflows of $52 million for the quarter, representing less than 2% of the fund's approximately $3 billion net asset value. Gross capital inflows of $127 million provided a partial offset. The company maintains a strong liquidity position, reporting over $1.3 billion in liquidity as of February 28, 2026, across cash, available borrowing capacity, and liquid Level 2 assets. This liquidity profile provides approximately 7x coverage of the current tender obligation. Net leverage stood at 0.82x debt-to-equity, below the target range of 0.90x to 1.25x.

Portfolio fundamentals remain resilient, with non-accruals at just 0.2% of fair value and an average annual net loss rate of 0.0% since inception. The portfolio is diversified across 190 companies with a fair value of $6.2 billion, consisting of 93% senior secured loans. OTIC Class I shares have delivered a 9.6% annualized return since inception in May 2022. Management expressed confidence in the portfolio's positioning, citing the structural advantages of direct lending and the ability to capitalize on market dislocation.