A Leading BDC Focused on Lending to Private U.S. Middle-Market Companies
Owl Rock Capital Corporation (NYSE: ORCC) is a specialty finance company and business development company (BDC) focused on providing direct lending solutions to U.S. middle-market companies. We seek to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns, including senior secured, subordinated, or mezzanine loans and equity-related instruments. Our investment strategy is intended to generate favorable returns across credit cycles with an emphasis on preserving capital. We intend to pay a quarterly dividend and shareholders can learn more about our dividend history here.
ORCC is externally managed by Owl Rock Capital Advisors LLC, an affiliate of Blue Owl Capital Inc. (NYSE: OWL) and a part of Owl Rock, a division of Blue Owl. Owl Rock, together with its subsidiaries, is a New York-based direct lending platform with approximately $65.7 billion of assets under management as of September 30, 2022. Owl Rock’s team of investment professionals works with borrowers across industries and sectors with a focus on serving as the capital partner of choice for leading private companies. Owl Rock’s relationship-oriented approach to investing provides companies with sizeable commitments to facilitate transactions and support their growth needs with certainty, speed, and transparency throughout the entire investment process.
Our Investment Approach
- We originate, execute, and manage debt and equity investments in predominantly U.S. middle-market companies. We invest in senior secured or unsecured loans, subordinated loans or mezzanine loans and, to a lesser extent, equity-related securities and warrants
- We focus on first lien, unitranche, and second lien term loans
- We are focused on long-term credit performance and principal protection
- We are long-term investors with the ability to provide sizeable commitments to facilitate transactions and support the growth-related needs of our borrowers
- We seek to provide certainty, speed, and transparency throughout the entire investment process
- We have the ability to lead or anchor debt financings of up to $1 billion across the Owl Rock platform
Our Investment Criteria
- Companies with earnings before interest expense, income tax expense, depreciation, and amortization, or “EBITDA,” between $10 million and $250 million annually and/or annual revenue of $50 million to $2.5 billion at the time of investment
- Established companies with positive cash flow
- Companies with strong competitive positioning in their industries
- Companies with experienced management teams
- Companies with diverse customer and supplier basis
- Investments with maturities typically between three and ten years
- Investments generally ranging in size between $20 million and $250 million
What Do Our Portfolio Companies Use Our Capital For?
- Growth
- Acquisitions
- Market or product expansion
- Refinancings
- Recapitalizations