Owl Rock Technology Income Corp.
Score
2.5
- ClassS
- Managed byOwl Rock Technology Advisors II LLC
- Release dateJanuary 25, 2024
- UpdatedJuly 18, 2025
Net Asset Value
$1.12B(as of 12/31/2024)
Max. Offering Size
$5B(offered on a continuous basis)
Investment Style
GrowthHQ Location
New York, NYAmount Raised
$1.23B(as of April 3, 2023; includes $921.9M via Class I Private Offering)
Legal Construction
CorporationAsset Class
Private CreditInception
May 1, 2022Eligibility
All investorsMin. Investment
$25,000Annualized Distribution Rate
8.54% (as of 3/31/2025)Net Total Return
10.09% ITD annualized (since inception to 3/31/2025, inclusive of distributions and net of fees)Distributions
MonthlyIncentive Fee
12.5% of Net Investment Income (subject to 5% hurdle and 100% catch-up, paid quarterly) 12.5% of realized gains (annually)Annual Management Fee
1.25% of average NAVHolding Period
Permanent CapitalAdvisor
Owl Rock Technology Advisors II LLCDealer Manager
Blue Owl SecuritiesAuditor
KPMG LLPCounsel
Eversheds Sutherland LLP; Alston & Bird LLPThe Bottom Line
OTIC lets regular investors become the “bank” to fast-growing U.S. software and tech firms. Nearly 90% of the portfolio sits in first-lien, floating-rate loans, so income rises when the Fed hikes and you stand first in line if a borrower stumbles. The headline lure is a cash yield around 8% paid every month.
What’s easy to miss: a 3.50% up-front sales load plus a 10.75% all-in expense drag (interest included) mean almost one-tenth of your money leaks out yearly. And even though the NAV posts daily, you can only tap your cash once a quarter, capped at 5% of shares.
Your Money vs. Reality
Launch to date, OTIC’s Class S shares have done well versus bonds but trail stocks. Here’s the scorecard from first subscription month (June 2022) through June 2025—identical span for every benchmark.
Notes – Same 3-year window for all lines. Proxies: SPY (stocks), HYG (high-yield), LBMA gold, IEF (Treasuries), VMFXX (cash). OTIC return incorporates the full 3.50% sales charge plus ongoing expenses.
Key Takeaways:
- OTIC out-earned bonds, gold and cash, but a simple S&P 500 ETF still finished $1,460 ahead.
- Up-front load and hefty fees shaved roughly a full percentage point off OTIC’s compound return.
- For income hunters the yield is juicy; for wealth-builders the opportunity cost is real.
Fund Strategy
OTIC originates floating-rate, senior-secured loans (≈ 90% of assets) to upper-middle-market software businesses backed by private-equity sponsors. A 10–20% sleeve in equity-linked “growth capital” seeks extra upside. Target leverage sits at 0.9–1.25× equity.
Fit Check
Ideal For:
- Investors craving 8%-plus monthly cash flow.
- Those comfortable locking money for years and accepting tech-sector credit risk.
Less Ideal For:
- Growth-focused HENRYs chasing equity-level upside.
- Anyone who might need quick liquidity.
Fast Facts
Key Concern
What It Means for You
10.75% Total Expense
~10 ¢ of every dollar vanishes yearly to fees and interest.
Quarterly 5% Repurchase Cap
Cash-outs may be prorated in a rush, delaying exits.
Tech-Sector Concentration
80%+ exposure to software borrowers heightens cycle risk.
Short 3-Year Record
No real-world recession test yet; performance could swing.
Pros/Bulls Say
- 8% cash yield, paid monthly, with first-lien downside protection.
- Floating rates turbo-charge income when the Fed raises rates.
- Backed by Blue Owl’s $80 B tech-lending platform and 30+ dedicated deal pros.
Cons/Bears Say
- Steep load and double-digit expense drag hobble compounding.
- Quarterly liquidity gate can lock capital during stress.
- All loans tied to one sector—great when tech is strong, painful if it’s not.
Verdict
2.5 / 5 — A robust income machine for patient investors who can live with tech-focused credit risk and tight redemption windows. Fee drag and opportunity cost make it a supporting-cast holding, not a core wealth builder.
Fees & Expenses
Fee Type
Why It Matters
How Calculated
Typical Amount
Up-front Sales Load
Broker commission
3.5% of purchase
3.50%
Shareholder Servicing Fee
Ongoing account support
0.85% of NAV
0.85%
Management Fee
Portfolio oversight
1.25% of net assets
1.25%
Incentive Fees
Reward above hurdles
12.5% of NII over 5% + 12.5% of gains
Variable
Interest & Operating
Borrowing + admin
Actual costs
~5.15%
Total Annual Cost
All-in drag
≈ 10.75%
Fee Impact Example:
Invest $10,000 for 10 years at 9% gross:
- About $350 upfront + ~$1,075 a year in costs.
- Erasing roughly 80% of potential gains.
Portfolio Snapshot
As of 3/31/2025
Asset Type
End Market
Overview
ALIGNMENT: Below Average
- The fund charges a typical 12.5% performance fee, but only after it clears a 5% return hurdle. That’s standard in the industry—but we didn’t see any personal capital from the fund managers, which raises concerns about skin in the game. Overall, it’s aligned like most funds, not necessarily in favor of investors.
Performance: Average
- Since launching in 2022, the fund has delivered a solid 10.0% annualized return, with 8.5% of that coming from income. That’s a strong yield—but keep in mind the track record is still short, so there’s not much history to judge how it performs in different market cycles.
Market Risk: Above Average
- The fund leans heavily into tech, which means it rides the ups and downs of innovation, fierce competition, and changing regulations. About 96% of the loans are floating-rate—great when interest rates go up, but those same tech borrowers can struggle in a downturn.
Business Risk: Above Average
- This fund depends a lot on the expertise and stability of the Blue Owl team. If key team members leave or shift focus to other Blue Owl funds, it could affect performance. There’s also a risk of overlap or conflicts with other funds managed under the same umbrella.
Debt Risk: Above Average
- The fund uses a moderate amount of debt—between 0.75x and 1.25x the equity. While that’s manageable, interest costs are steep at 8.36%, which eats into returns. On the plus side, the loans are senior and backed by assets with low loan-to-value ratios (under 50%), which adds a layer of protection.
Liquidity Risk: Above Average
- You can ask to cash out once a quarter, but only up to 5% of the fund’s total value. That means there’s no guarantee you’ll be able to get your full investment back right away if a lot of people want out at the same time.
Transparency: Above Average
- The fund’s website does a solid job keeping investors informed with regular updates on NAV and holdings. There’s a decent amount of reporting and documentation available. That said, they could be clearer about how third-party valuations are done.
Manager Insights
The people running your money matter. Here’s what you need to know about this team:
Doug Ostrover
CEO & Co-CIOExperience & Highlights: 30+ years; co-founded Blue Owl and GSO Capital (Blackstone’s credit arm); ex-Senior MD at Blackstone.
Education: B.A. Economics, University of Pennsylvania; MBA, NYU Stern School.
Mark Lipschultz
Co-Founder & Co-CIOExperience & Highlights: 30+ years; co-leads Blue Owl; ex-lead roles at KKR in private equity and infrastructure; ex-Goldman Sachs.
Education: B.A., Stanford University; MBA, Harvard Business School.
Alexis Maged
Managing DirectorExperience & Highlights: 30+ years; joined Owl Rock in 2016; ex-CFO of Barkbox; former MD at Goldman Sachs.
Education: B.A., Vassar College; MBA, NYU Stern School of Business.
Peer Comparison
Vehicle
Owl Rock Technology Income Corp.
Apollo Debt Solutions BDC
Oaktree Strategic Credit Fund
Min. Investment
$25,000
$2,500
$2,500
Holding Period
Permanent Capital
Permanent Capital
Permanent Capital
Annual Fee Expense
11.09%
8.41%
8.93%
Inception Date
May 2022
Jan 2022
July 2022
Net Returns Since Inception (Annualized)
10.09%
7.72%
8.72%
Annualized Distribution Rate
8.54%
8.9%
9.46%
NOYACK® Score
Disclaimer
All Rights Reserved. The data and analyses contained herein are the property of Noyack and are protected by copyright and other intellectual property laws. The information provided is intended solely for informational purposes and should not be construed as investment advice. It is not an offer to buy or sell a security, and it is not intended to be used as the sole basis for any investment decision. The information contained in this document is believed to be accurate and reliable based on sources believed to be reliable, but Noyack makes no representation or warranty, express or implied, as to its completeness, accuracy, or timeliness. The data and analyses are subject to change without notice and Noyack is not obligated to update this information. The use of the information contained in this document is at the sole risk of the reader, and Noyack shall not be responsible for any losses, damages, or expenses incurred by any person as a result of reliance on the information contained herein. Noyack does not endorse or approve any investment or trading strategy and does not guarantee any specific outcome or profit. The reader should always conduct their own independent analysis and consult with a qualified financial advisor before making any investment decisions. This document may contain forward-looking statements and projections which are subject to risks and uncertainties, and actual results may differ materially. Past performance is not indicative of future results. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Noyack reserves the right to modify or discontinue the provision of the information contained in this document, in whole or in part, at any time and without notice. The information contained in this document is provided “as is” and Noyack makes no representation or warranty of any kind, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of the information contained in this document. Noyack shall not be liable for any errors or omissions contained in this document or for any damages whatsoever arising out of or in connection with the use of this document.
