All data referenced herein is as of September 30, 2022, unless otherwise denoted.
1. Owl Rock has experienced defaults and non-accruals across the platform. Average annual loss rate based on total annual net realized losses across Owl Rock platform divided by the average aggregate quarterly cost of investments. The loss rate is based on the average loss rates in each year since inception from 2016 to 2021. Loss rates by fund: ORCC (-0.14%), ORCC II (-0.11%), ORCC III (0.00%), ORCIC (0.00%), ORTF (0.00%), FLF (0.00%), ORO (0.00%).
Past performance is not indicative of future results.
This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. Only a prospectus for Owl Rock Technology Income Corp. can make such an offer. This material is authorized only when it is accompanied or preceded by the Owl Rock Technology Income Corp prospectus. Neither the SEC, the Attorney General of the State of New York nor any state securities commission has approved or disapproved of these securities or determined if the prospectus is truthful or complete. Any representation to the contrary is a criminal offense. Securities are offered through Blue Owl Securities LLC, member of FINRA/SIPC, as Dealer Manager.
Assets Under Management (“AUM”) refers to the assets that we manage and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; and (iii) uncalled capital commitments.
An investment in Owl Rock Technology Income Corp. (“ORTIC”) is speculative and involves a high degree of risk, including the risk of a substantial loss of investment, as well as substantial fees and costs, all of which can impact an investor’s return. The following are some of the risks involved in an investment in ORTIC’s common shares; however, an investor should carefully consider the fees and expenses and information found in the “Risk Factors” section of the ORTIC prospectus before deciding to invest:
- ORTIC is a new company and it has not identified specific investments that it will make with the proceeds of this offering, so it may be considered a blind pool because an investor may not have the opportunity to evaluate historical data or assess future investments prior to purchasing ORTIC shares.
- You should not expect to be able to sell your shares regardless of how ORTIC performs and you should consider that you may not have access to the money you invest for an indefinite period of time. An investment in shares of ORTIC’s common stock is not suitable for you if you need access to the money you invest.
- ORTIC does not intend to list its shares on any securities exchange and does not expect a secondary market in its shares to develop. As a result, you may be unable to reduce your exposure in any market downturn. If you are able to sell your shares before a liquidity event is completed, you will likely receive less than your purchase price.
- Beginning no later than the first full calendar quarter after the date that ORTIC sells shares to a person or entity other than Owl Rock Technology Advisors LLC, its investment adviser (the “Adviser”), or ORTIC’s directors, officers and/or other affiliated persons and entities, ORTIC intends to implement a share repurchase program pursuant to which it intends to conduct quarterly repurchases of a limited number of outstanding shares of its common stock. ORTIC’s board of directors has complete discretion to determine whether ORTIC will engage in any share repurchase, and if so, the terms of such repurchase. ORTIC’s share repurchase program will include numerous restrictions that limit your ability to sell your shares. As a result, share repurchases may not be available each month. While ORTIC intends to continue to conduct quarterly tender offers as described above, it is not required to do so and may amend or suspend the share repurchase program at any time.
- Distributions on ORTIC’s common stock may exceed ORTIC’s taxable earnings and profits, particularly during the period before it has substantially invested the net proceeds from its public offering. Therefore, portions of the distributions that ORTIC pays may represent a return of capital to you for U.S. federal tax purposes. A return of capital is a return of a portion of your original investment in shares of ORTIC common stock. As a result, a return of capital will (i) lower your tax basis in your shares and thereby increase the amount of capital gain (or decrease the amount of capital loss) realized upon a subsequent sale or redemption of such shares, and (ii) reduce the amount of funds ORTIC has for investment in portfolio companies. ORTIC has not established any limit on the extent to which it may use sources other than cash flows from operations to fund distributions.
- Distributions may also be funded in significant part, directly or indirectly, from the deferral of certain investment advisory fees that may be subject to repayment to the Adviser and/or the reimbursement of certain operating expenses, that may be subject to repayment to the Adviser and its affiliates. Significant portions of distributions may not be based on investment performance. In the event distributions are funded from deferrals of fees and reimbursements by ORTIC’s affiliates, such funding may not continue in the future. If ORTIC’s affiliates do not agree to reimburse certain of its operating expenses, then significant portions of ORTIC’s distributions may come from sources other than cash flows from operations. The repayment of any amounts owed to ORTIC’s affiliates will reduce future distributions to which you would otherwise be entitled.
- 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 ORTIC’s prospectus for details regarding its fees and expenses.
- ORTIC intends to invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be illiquid and difficult to value.
- The Adviser and its affiliates face a number of conflicts with respect to ORTIC. Currently, the Adviser and its affiliates manage other investment entities, including Owl Rock Capital Corporation, Owl Rock Capital Corporation II and Owl Rock Core Income Corp., and are not prohibited from raising money for and managing future investment entities that make the same types of investments as those ORTIC targets. As a result, the time and resources that the Adviser devotes to ORTIC may be diverted. In addition, ORTIC may compete with any such investment entity also managed by the Adviser 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 ORTIC invests as it may receive fees in connection with such services that may not be shared with ORTIC.
- The incentive fee payable by ORTIC to the Adviser may create an incentive for the Adviser to make investments on ORTIC’s behalf that are risky or more speculative than would be the case in the absence of such compensation arrangements. ORTIC may be obligated to pay the Adviser incentive fees even if ORTIC 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 information provided above is not directed at any particular investor or category of investors and is provided solely as general information about Owl Rock 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 as Blue Owl Securities LLC, its affiliates, and ORTIC are not undertaking to provide impartial investment advice, act as an impartial adviser, or give advice in a fiduciary capacity with respect to the materials presented herein.
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