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Chart of the Month
Direct lending as a source of steady, premium yield
OCIC Annualized Distribution Rate1 vs. Bank Loan Mutual Fund & ETF Counterparts2,3
The past performance is not a guarantee of future results. There can be no assurance that historical trends will continue. An investor cannot invest directly in an index. Index performance does not reflect fees and expenses which may management fees, access fund expenses, and administrative fees. The indices presented represent investments that have material differences from an investment in a non-traded BDC, including those related to vehicle structure, investment objectives and restrictions, risks, fluctuation of principal, safety guarantees or insurance, fees and expenses, liquidity and tax treatment.
Despite a 100bps decline in SOFR and a 44bps tightening in private credit spreads over the past year, Blue Owl's OCIC has maintained a steady $0.24 per share distribution for four consecutive quarters—equating to a 10.19% distribution rate for Class I Shares.1,4 This consistency stands out in a shifting rate environment where the average bank loan fund has seen its distribution rate fall by 70bps over the same period.
This resilience highlights the structural advantages of BDCs like OCIC. Compared to traditional mutual funds and ETFs, BDCs have more flexibility to manage income, including the use of higher leverage and the ability to smooth distributions over time. While direct lending remains a floating rate asset class and distributions may evolve, OCIC is well-positioned to continue delivering more stable, premium earnings power relative to bank loan funds.
Powering the Future: Blue Owl’s Role in Project Stargate
Blue Owl Real Estate is partnering with Oracle Corporation and Crusoe Energy to develop an 836 MW data center campus in Abilene, Texas—the first site of the $500 billion Stargate Project, a landmark initiative by Oracle and OpenAI to expand AI infrastructure. The project is secured by a 17-year lease with Oracle, reinforcing a strategy focused on long-term, creditworthy cash flows that support resilient, risk-adjusted returns.
The transaction was structured to ensure execution certainty, including a guaranteed maximum price and completion guarantee. With fully committed discretionary capital and a strong track record in complex developments, Blue Owl is funding 100% of construction alongside Crusoe—enabling Oracle to accelerate deployment while maintaining capital flexibility.
Executive Insights: The rise of Asset-Based Finance
In this episode of Alt Goes Mainstream, Blue Owl's Head of Alternative Credit, Ivan Zinn, shares insights from his storied career in private credit and asset-based finance (ABF). From his early days in the industry to founding Atalaya Capital Management, Ivan has been at the forefront of ABF’s evolution.
The conversation explores the structural growth of ABF, its role in diversifying portfolios, and how shifting assets off bank balance sheets can strengthen the financial system. Following Blue Owl’s acquisition of Atalaya, Ivan now leads the firm’s expansion into scaled, specialized credit strategies. With deep expertise in sourcing and underwriting across asset classes, Blue Owl is well positioned to capitalize on the demand for private credit solutions.
Blue Owl's enters strategic partnership with Voya Financial
We are proud to announce a strategic partnership with Voya Financial to redefine the future of retirement investing. Together, we’re unlocking access to private markets through solutions tailored for defined contribution plans, giving participants new ways to strengthen and diversify their portfolios.
This collaboration combines our deep expertise in private markets with Voya’s leadership in workplace retirement solutions—creating a powerful platform for innovation across the retirement landscape. The partnership will launch with collective investment trusts (CITs) available through Voya’s advisor-managed accounts and target date solutions, bringing institutional-quality private market strategies to millions of people saving for retirement. Together, we're transforming how private markets support retirement goals.
1. Distribution payments are not guaranteed. Blue Owl Credit Income Corp. may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by multiplying the sum of the last three base distributions per share paid and special distribution per share paid by four, and dividing the result by the NAV per share of the month preceding the relevant three month period. Excluding special dividends, the Fund declared an annualized distribution amount of $0.76 per share for Class S, $0.82 per share for Class D, and $0.84 per share for Class I, resulting in annualized distribution rates of 8.08% for Class S shares, 8.68% for Class D shares, and 8.93% for Class I shares based on the last reported NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25%, Class I: No servicing fee). The payment of future distributions is subject to the discretion of OCIC’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of OCIC. Such waivers and reimbursements by the Adviser may not continue in the future. No distributions paid were classified as a return of capital for the quarter ending March 31, 2025. For further information, please see our SEC filings at www.sec.gov.
2. Source: Bloomberg. Bank Loan Mutual Fund and ETF peer group represents US-domiciled Open-End Mutual Fund and ETF vehicles with AUM > $1bn as of 5/31/25. Reflects stated 12-month distribution yield as of 5/31/2025 for institutional shares. Showing OCIC rolling 3-month total annualized distribution rate vs average of senior bank loan ETF peer group.
3. Data through May 31, 2025.
4. Source: Cliffwater Direct Lending Index 1L Sponsored Spreads as of May 31, 2025.
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH CLIENTS OR THE GENERAL PUBLIC.
This communication is for informational purposes only and is not an offer or a solicitation to sell or subscribe for any fund and does not constitute investment, legal, regulatory, business, tax, financial, accounting or other advice or a recommendation regarding Blue Owl Capital Inc. (“Blue Owl”), its affiliates and investment program, funds sponsored by Blue Owl, including the Blue Owl Credit, GP Strategic Capital Funds and the Real Assets Funds (collectively the “Blue Owl Funds”) as well as investment held by the Blue Owl Funds. The information provided herein is not directed at any particular investor or category of investors and is provided solely as general information about Blue Owl products and services to regulated financial intermediaries and to otherwise provide general investment education. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action. All investments are subject to risk, including the loss of the principal amount invested, as well as substantial fees and costs, all of which can impact an investor’s return. Within the United States and Canada, securities are offered through Blue Owl Securities LLC, member of FINRA/SIPC, as Dealer Manager.
