Tender Requests Ease at Blue Owl Credit Income but Hold Near 39% at Blue Owl Technology Income

Both funds will again cap repurchases at 5% of shares, and Blue Owl says this year’s ordinary-course loan repayments have already covered every 2026 tender at each fund.

October 5, 2026

Redemption pressure is easing at Blue Owl Credit Income Corp. but not at its technology-focused sibling. In shareholder letters and question-and-answer documents sent October 2, the two non-traded business development companies reported preliminary third-quarter repurchase requests that moved in different directions: requests at Blue Owl Credit Income fell for a second straight quarter, while those at Blue Owl Technology Income Corp. stayed close to 40% of shares outstanding.

Blue Owl Credit Income, known as OCIC, received an estimated $3.1 billion in tender requests when its window closed on September 30, equal to 16.8% of shares outstanding as of June 30. That compares with $3.6 billion, or 18.8%, in the second quarter and $4.2 billion, or 21.9%, in the first quarter, which the company identifies as the peak.

Blue Owl Technology Income, known as OTIC, received estimated requests of about $1.1 billion, or 39.0% of shares outstanding. That is in line with the prior quarter's $1.1 billion, or 38.1%, and modestly below the first-quarter peak of $1.2 billion, or 40.4%. The company acknowledged that its requests remain elevated relative to the broader non-traded BDC industry and attributed the gap to its specialized investment mandate.

Both funds will honor their 5% quarterly tender offers on a pro rata basis:

• OCIC: approximately 30% of tendered shares will be repurchased under an offer sized at $0.9 billion.
• OTIC: approximately 13% of tendered shares will be repurchased under a $135 million offer.

Both companies described the request figures as preliminary, with final results to come.

Mostly Repeat Requests

Blue Owl said the vast majority of requests at both funds were resubmissions of earlier tenders that went unfilled, not new redemption demand. Unfilled requests do not roll forward and must be resubmitted each quarter; the next window is expected in December 2026.

After the third-quarter payments, OCIC will have returned $2.8 billion to shareholders within six months and filled approximately 60% of original tender requests made since the first quarter, measured for an investor who resubmitted unfilled shares each quarter. OTIC will have provided approximately $446 million over the same span, filling about 35% of original first-quarter requests. OCIC added that more than 90% of its 90,000 shareholders remain fully invested, a figure that excludes investors who hold the fund through feeder vehicles.

Software Concerns at the Tech Fund

The OTIC letter took on its backdrop directly, citing market fears that artificial intelligence could disintermediate software companies and arguing that the fund's credit results do not reflect that concern. As of June 30, non-accruals stood at 0.3% of fair value, and the fund reported an average annual net realized gain of 6 cents per $100 invested since inception, against an average annual net loss of 38 cents for the Cliffwater Direct Lending Index senior loan benchmark over the closest comparable period.

The portfolio was valued at $5.0 billion as of August 31, spread across 168 companies in 38 industries, with 91% in senior secured loans at a 40% weighted-average loan-to-value ratio. Borrowers average $1.1 billion in revenue and $358 million in EBITDA, and more than 97% of the portfolio is sponsor-backed. Blue Owl said many of those sponsors are working with frontier AI labs to help portfolio companies adopt the technology, and that slower software deal flow has let OTIC deploy into areas such as life sciences and digital infrastructure.

The letter led with a 2.1% quarter-to-date total return for Class I shares through August 31 and a 9.0% annualized return since the fund's May 2022 launch. The performance disclosures accompanying it show Class I at negative 0.21% year to date through August and 2.88% over one year.

OCIC Points to Peer-Leading Returns

OCIC reported a 4.0% year-to-date total return for Class I shares through August 31 and a 9.2% annualized return since its March 2021 inception. Blue Owl set the year-to-date figure against Class I returns at the other non-traded BDCs holding more than $5 billion in NAV, as identified by The Stanger Report: 1.5% for BCRED, 3.4% for HLEND, 3.5% for ASIF and 3.6% for ADS.

Credit metrics held steady. No new issuers moved to non-accrual status in 2026, non-accruals stood at 0.2% of fair value as of June 30, and the fund has averaged an annual net realized loss of 15 cents per $100 invested since inception. The $35.1 billion portfolio spans 335 companies across 31 industries, with more than 91% in senior secured loans, a 43% loan-to-value ratio and 95% sponsor backing.

Liquidity, Leverage and Distributions

Both funds said they can meet tenders without selling private loans. OCIC reported $11.2 billion of available liquidity as of August 31, more than 12 times its third-quarter offer, and said financing transactions completed in September added another $1.3 billion. Earlier that month the company also closed a $1 billion two-part note sale ahead of a maturing series of 3.125 percent notes. OTIC reported $1.2 billion of available liquidity, nearly nine times its offer. The two measures are not defined identically: OCIC's available debt is not subject to borrowing base restrictions, while OTIC's reflects the borrowing base limits on each credit facility.

Ordinary-course repayments have also kept pace with redemptions. OCIC has received approximately $4.0 billion in repayments this year and OTIC more than $500 million, in each case enough to cover all of the fund's 2026 tender offers to date, according to the companies.

Both funds are running below their 0.90x to 1.25x target leverage range, with net leverage of 0.88x at OCIC and 0.83x at OTIC as of August 31, which Blue Owl says leaves room to lend into wider spreads and stronger lender protections. Each holds 98% of its debt portfolio in floating-rate loans, and the letters point to the Federal Reserve's 25 basis point rate increase in mid-September, and the possibility of another before year-end, as support for portfolio yields.

Monthly base distributions are unchanged. OCIC has paid $0.0701 per share since August 2023 and OTIC $0.07478 per share since November 2022, with both boards declaring those amounts through November 2026. Each equates to a 9.2% annualized distribution rate for Class I shares as of August 31.

Craig W. Packer, Blue Owl's head of credit, signed both letters as chief executive of each fund, alongside Logan Nicholson, OCIC's president, and Erik Bissonnette, OTIC's president.