Blue Owl Technology Finance (OTF) Investor presentation summary

Investment strategy and portfolio overview

• Focuses on debt and equity investments in upper middle-market, technology-related U.S. companies, with a strategic emphasis on software and defensively positioned, market-leading borrowers across non-cyclical industries.

• Portfolio is highly diversified, with $14.1 billion in investments at fair value across 203 companies, 82% in senior secured and 78% in first-lien positions, and 96% of debt investments are floating rate.

• Technology lending strategy targets large, established companies in software, systems & infrastructure, fintech, and select high-conviction areas like AI infrastructure and life sciences credit.

• Investment criteria emphasize defensible market positions, strong free cash flow, structural durability, high switching costs, and attractive unit economics.

• Approximately 70% of the portfolio is allocated to three core software categories: application, systems & infrastructure, and fintech & payments.

Performance and financial highlights

• Delivered an annualized total return of 8.6% since inception, with a 10% NAV growth and 29bps average annual net gain.

• Q1 2026 net asset value per share was $16.49, with adjusted net investment income per share of $0.29 and GAAP net investment income per share of $0.37.

• Q1 2026 adjusted net income per share was $(0.56), primarily due to unrealized losses from credit spread widening.

• Annualized dividend yield stands at 9.7%, with total Q1'26 dividends of $0.40 per share and a $300 million share repurchase program in place.

• Debt to equity ratio increased to 0.85x, with $2.3 billion in liquidity and a weighted average debt maturity of 5.5 years.

Risk management and credit quality

• Portfolio is anchored by high-quality, low loan-to-value borrowers, with only 0.1% of investments on non-accrual at fair value as of Q1 2026.

• 92% of investments are internally rated 1 or 2, indicating strong credit quality.

• Diversification across 37 industries, with the largest exposures in systems software, application software, and health care technology.

• Maintains four investment-grade credit ratings (Moody's Baa3, S&P BBB-, Fitch BBB-, KBRA BBB) and a stable outlook.

• Focus on downside protection through senior secured lending and disciplined underwriting, especially in mission-critical software where AI is additive.