Blue Owl Alternative Credit Fund (OWLCX)

All data as of July 31, 2025 unless otherwise noted. Past performance is not a guarantee of future results.

Endnotes

1. The Alternative Credit platform’s inception date is March 2006 with the foundation of Atalaya Capital Management LLC (\"Atalaya\"). Atalaya was acquired by Blue Owl in September 2024.

2. Distribution payments are not guaranteed. Blue Owl Alternative Credit Fund 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.

3. The Fund has adopted a fundamental policy to make quarterly repurchase offers of not less than 5% or more than 25% of the Fund’s outstanding shares. The Fund generally anticipates making repurchase offers for 5% of its outstanding shares quarterly, commencing during its second full quarter of investment operations. The repurchase price per share will generally be equal to the NAV per share as of the Repurchase Pricing Date, except that shares that have not been outstanding for at least one year will be subject to a 2% early withdrawal charge. There is no guarantee that an investor will be able to tender all or any of their requested Fund shares in a periodic repurchase offer. Investors should consider shares of each Fund to be an illiquid investment. 

4. Managed Assets means the total assets of the Fund (including any assets attributable to borrowings for investment purposes) minus the sum of the Fund’s accrued liabilities (other than liabilities representing borrowings for investment purposes) as of each day.

5. No Upfront Sales Load will be paid to the Fund or Dealer Manager with respect to Class S and Class U Shares. If, however, Class S Shares or Class U Shares are purchased through certain financial intermediaries, those financial intermediaries may directly charge transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine, provided that the selling agents limit such charges to 3.50% of the net offering price per share for each Class S Share and 3.00% of the net offering price per share for each Class U Share. Such Fees are not Upfront Sales Loads paid to the Fund or Dealer Manager. Financial intermediaries will not charge such fees on Class I Shares. 

6. Past performance is not a guarantee of future results. Total return is calculated based on the change in quoted market price of the fund’s shares, taking into account dividends reinvested in accordance with the terms of the dividend reinvestment plan or lacking such plan, at the lesser of net asset value or market price on the dividend distribution date (total investment return computed based on net asset value per share may also be presented if the difference in results between the two calculations is explained). Returns greater than one year are annualized. Returns reflect reinvestments of distributions and the deduction of ongoing expenses that are borne by investors, such as management fees, incentive fees, distribution and servicing fees, interest expense, offering costs, professional fees, director fees and other general and administrative expenses. Operating expenses may vary in the future based on the amount of capital raised, the Adviser’s and Board’s election to continue expense support, and other unpredictable variables.

Total returns based on the inception of each share class; for performance purposes, the inception date of the fund was the commencement of the private offering: May 12th 2025 for Class I Shares and July 15th 2025 for Class U Shares. The Adviser has voluntarily agreed to waive receipt of the Management Fee and Incentive Fee until the commencement of any public offering of the Fund’s Shares. The performance data for Class U Shares and Class S Shares will be available beginning three-months after the inception date of such class. 

The performance calculation for the months of May, June, and July 2025 does not include the Management Fee and Incentive Fee which was voluntarily waived during such period.  The Fund’s public registration statement went effective on August 28th, 2025; performance subsequent to such date will take into account the Management Fee and Incentive Fee.

No upfront sales load will be paid to the Fund or Blue Owl Securities LLC with respect to Class S and Class U Shares. If, however, Class S Shares or Class U Shares are purchased through certain financial intermediaries, those financial intermediaries may directly charge transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine, provided that the selling agents limit such charges to 3.50% of the net offering price per share for each Class S Share and 3.00% of the net offering price per share for each Class U Share. The performance data shown above does not reflect the deduction of such a sales load or fee, and if reflected, the load or fee would reduce the performance quoted. 

7. TAM is defined as Total Addressable Market. Asset-based finance TAM, growth of private ABF, and the 2028E estimate reflects market sizing developed by Blue Owl, based on assumptions derived by third-party sources, including Federal Reserve Z.1 Financial Accounts of the United States Q3 2023, FRB NY Quarterly Report on Household Debt and Credit November 2023, SIFMA statistics Q3 2023, Secured Finance Foundation 2023 Secured Finance Market Sizing and Impact Study, 2022 Equipment Leasing & Finance Industry Horizon Report, CFPB Fact Sheet March 30 2023, Preqin Private Debt 2022 data, S&P Global Credit Trends Report October 2, 2023, Ginnie Mae Global Markets Analysis Report December 2023, Interval Fund Tracker Most Recent Quarter Data 2023. MSI research Q4 2023. Assumptions of the underlying include estimated growth rates and product trends derived from the cited industry sources. Actual outcomes may vary materially. 

8. "Total Investments" include all transactions, which can be defined as multiple transactions, or \"investments\", with the same counterparty and underlying assets.

9. The Adviser has entered into an expense limitation agreement with the Fund, whereby the Adviser has agreed to waive fees that it would otherwise be paid, and/or to assume expenses of the Fund, if required to ensure that "Specified Expenses" for each class of Shares do not exceed 0.50% of the average daily net assets of each respective class of Shares on an annual basis. "Specified Expenses" with respect to each class of Shares means all expenses incurred in the business of the Fund, including organizational and certain offering expenses, with the exception of certain enumerated expenses.  For additional details on the expense limitation agreement, please see the Fund's Prospectus. 

Important information

OWLCX Risk Factors  

Prospective investors that may be interested in a potential investment must receive and carefully review the Fund’s prospectus (the \"Prospectus\") that contains additional information and sets forth information about the Fund, prior to investing. The Fund’s Prospectus is the sole means by which the offering of the Fund will be made, information in the Prospectus is or will supersede and qualify in its entirety any other information contained herein, and any decision to invest should be made after reviewing the Prospectus. In the event that the disclosures or terms described in the information contained herein are inconsistent with or contrary to the disclosures or terms in the Prospectus, the Prospectus shall control.

An investment in the Fund is speculative and entails substantial risk.  An investment in the Fund is considered illiquid. Fund performance may be volatile and a Shareholder could incur a total or substantial loss of its investment.

There is no assurance that the investments held by the Fund will be profitable, that there will be proceeds from such investments available for distribution to Shareholders, or that the Fund will achieve its investment objective. Prospective investors should carefully consider all of the risk factors set forth in the Prospectus, each of which could have an adverse effect on the Fund or other investment vehicle and on the value of shares of the Fund. The \"Risk Factors\" and \"Potential Conflicts of Interest\" sections of the Prospectus set forth the principal risks of investing in the Fund, including that:

• The Fund has limited operating history.  The Fund is subject to all of the business risks and uncertainties associated with any new business, including the risk that the Fund will not achieve its investment objectives and that the value of Shares could decline.
• The Fund is subject to management risk because it is an actively managed investment portfolio.  The Adviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these will produce the desired results.  The Fund may be subject to a relatively high level of management  risk because the Fund invests in alternative credit assets, which are highly specialized instruments that require investment techniques and risk analyses different from those associated with investing in public equities and bonds.  The Fund’s allocation of its investments across portfolio investments representing various strategies, geographic regions, asset classes and sectors may vary significantly over time based on the Adviser’s analysis and judgment.  As a result, the particular risks most relevant to an investment in the Fund, as well as the overall risk profile of the Fund’s portfolio, may vary over time.  It is possible that the Fund will focus on an investment that performs poorly or underperforms other investments under various market conditions.
• One of the fundamental risks associated with the Fund’s investments is credit risk, which is the risk that an issuer will be unable to make principal and interest payments on its outstanding debt obligations when due.  The Fund’s return to investors would be adversely impacted if an issuer of debt in which the Fund invests becomes unable to make such payments when due.
• The Fund may invest in unrated and \" investment grade\" loans, securities and obligations of issuers in weak financial condition, experiencing poor operating results, having substantial capital needs or negative net worth, facing special competitive or product obsolescence problems, including companies involved in bankruptcy or other reorganization and liquidation proceedings (also known as \"high-yield\" or \"junk\" bonds).  These loans, securities and obligations are likely to be particularly risky investments although they also may offer the potential for correspondingly high returns.  
• There is not expected to be any secondary trading market in the shares. Unlike an investor in many closed-end funds, shareholders should not expect to be able to sell their shares regardless of how the Fund performs. An investment in the Fund is considered illiquid. Unlike many closed-end funds, the shares are not listed on any securities exchange. The Fund intends to provide liquidity through quarterly offers to repurchase a limited amount of the Fund’s shares.
• There is no assurance that distributions paid by the Fund will be maintained or that dividends will be paid at all, and the amount of distributions that the Fund may pay, if any, is uncertain. The Fund may pay distributions, in significant part, from sources that may not be available in the future and that are unrelated to the Fund’s performance, such as offering proceeds or borrowings. The Fund’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses.
• The payment of fees and expenses will reduce the funds available for investment, the net income generated, the funds available for distribution and the book value of the common shares. In addition, the fees and expenses paid will require investors to achieve a higher total net return in order to recover their initial investment. Please see the Prospectus for additional details regarding the Fund's fees and expenses.
• The Fund is subject to valuation risk, which is the risk that one or more of the securities in which the Fund invests are valued at prices that the Fund is unable to obtain upon sale due to factors such as incomplete data, market instability, human error, or, with respect to securities for which there are no readily available market quotations, the inherent difficulty in determining the fair value of certain types of investments. A significant amount of the Fund’s investments are expected to be in securities that do not have readily ascertainable market prices.  Assets that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Adviser (who may consider, as one input among others, certain procedures performed by one or more independent valuation firms, if any).  Because fair values, and particularly fair values of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time, and are often based to a large extent on estimates, comparisons and qualitative evaluations of private information, the Fund’s determinations of fair value may differ materially from the values that would have been determined if a ready market for these securities existed.  This could make it more difficult to value accurately the Fund’s portfolio investments and could lead to undervaluation or overvaluation of the Fund’s interests.
• The Adviser and its affiliates currently manage assets for other investment funds and accounts and/or may manage assets for such other investment funds and accounts in the future.  Actions taken by the Adviser or its affiliates on behalf of such investment funds and accounts have the potential to be adverse to the Fund and the Fund’s investments, which could harm the Fund’s performance. The Adviser and its affiliates currently manage, and expect to manage in the future, investment entities other than the Fund, including investment funds and accounts that invest in investments similar to those in which the Fund is investing.  As a result, the time and resources that the Adviser devotes to the Fund may be diverted, and during times of intense activity in other programs they may devote less time and resources to the Fund than is necessary or appropriate.  In addition, the Fund may compete with any such investment entity also managed by the Adviser or its affiliates for the same investors and investment opportunities. Furthermore, the Adviser may face conflicts of interest with respect to services it may perform for companies in which the Fund invests as it may receive fees in connection with such services that may not be shared with the Fund.
• The incentive fee payable by the Fund to the Adviser may create an incentive for the Adviser to make investments on the Fund's behalf that are risky or more speculative than would be the case in the absence of such compensation arrangements. The Fund may be obligated to pay the Adviser incentive fees even if the Fund incurs a net loss due to a decline in the value of its portfolio and even if its earned interest income is not payable in cash.
• The Fund operates as a \"non-diversified\" management investment company for purposes of the Investment Company Act of 1940, as amended, which means it will not be subject to percentage limitations on assets that may be invested in the securities of any one issuer.  As a result, the Fund may invest in relatively few industries or issuers.  To the extent that the Fund holds large positions in a small number of issuers, or within a particular industry, the Fund’s NAV may be subject to greater fluctuation.  
• Market risks, including political, regulatory, market, economic and social developments and developments that impact specific economic sectors, industries or segments of the market, can affect the value and liquidity of the Fund’s investments, which may become more difficult to value.
• The Fund intends to elect to be treated as a \\\"regulated investment company\\\" under the Internal Revenue Code of 1986, as amended, and intends each year to qualify and be eligible to be treated as such, so that it generally will not be subject to U.S. federal income tax on its net investment income or net short-term or long-term capital gains, that are distributed as dividends for U.S. federal income tax purposes to shareholders.  If, in any year, the Fund were to fail to qualify for treatment as a \\\"regulated investment company\\\", and were ineligible to or did not otherwise cure such failure, the Fund would be subject to tax on its taxable income at regular corporate rates and, when such income is distributed, shareholders would be subject to a further tax to the extent of the Fund’s current or accumulated earnings and profits.