OBDC on NYSE

Blue Owl Capital Corp

Blue Owl Capital Corp is an American company based in New York, listed on NYSE (OBDC).1

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Last updated Oct 21, 2026.

Overview

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  • TickerOBDC on NYSE1
  • HeadquartersNew York, New York1
  • Incorporated inMD2
  • Business address399 Park Avenue, New York, Ny 100222
  • Filer categoryLarge accelerated filer2

Blue Owl Capital Corporation was formed on October 15, 2015, as a corporation under the laws of the State of Maryland. Our investment objective is to generate current income, and to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. Our investment strategy focuses on primarily originating and making loans to, and making debt and equity investments in, U.S. middle-market companies. Within this space, we predominantly focus on investing in institutionally-backed, upper middle-market businesses, which we categorize as those generating greater than $50 million of EBITDA annually. We invest in senior secured or unsecured loans, subordinated loans or mezzanine loans, broadly syndicated loans and, to a lesser extent, equity and equity-related securities including warrants, preferred stock and similar forms of senior equity, which ma…4 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Financial statements

Net income5678$627.4M in 2025+62% since 2020
0$200.0M$400.0M$600.0M$800.0M2020: $387.7M$387.7M20202021: $624.9M$624.9M2021+61%2022: $466.4M$466.4M2022−25%2023: $793.3M$793.3M2023+70%2024: $595.0M$595.0M2024−25%2025: $627.4M$627.4M2025+5%

Every line of the income statement as filed: the last 5 fiscal years, latest first.8

Period ending2025-12-312024-12-312023-12-312022-12-312021-12-31
Payment-in-kind (PIK) interest income$127.4M$175.6M$171.7M
Dividend Income$56.0M$36.2M$37.3M
Investment Income$1.9B$1.6B$1.6B
Interest expense$595.8M$464.9M$436.3M
Management fee, net$252.0M$193.6M$191.6M
Performance based incentive fees$162.4M$157.2M$159.9M
Professional fees$13.7M$13.6M$15.5M
Directors' fees$1.7M$1.3M$1.3M
Other general and administrative$13.3M$13.5M$11.1M
Total Operating Expenses$1.0B$844.1M$815.7M
Net Investment Income (Loss) Before Taxes$812.4M$752.7M$766.4M
Income tax expense (benefit), including excise tax expense (benefit)$12.0M$11.6M$12.8M
Net Investment Income (Loss) After Taxes$800.4M$741.1M$753.6M
Net change in unrealized gain (loss)-$8.1M-$48.4M$91.7M
Translation of assets and liabilities in foreign currencies and other transactions$17.5M-$1.0M$5.8M
Income tax (provision) benefit-$3.1M-$709.0K-$4.6M
Total Net Change in Unrealized Gain (Loss)$6.3M-$50.2M$92.9M
Non-controlled, non-affiliated investments-$172.3M-$60.6M-$52.0M
Foreign currency transactions-$7.0M-$9.5M-$1.2M
Total Net Realized Gain (Loss)-$179.2M-$95.9M-$53.2M
Total Net Realized and Change in Unrealized Gain (Loss)-$173.0M-$146.1M$39.7M
Net Increase (Decrease) in Net Assets Resulting from Operations$627.4M$595.0M$793.3M
Earnings Per Share - Basic (in usd per share)$1.24$1.53$2.03
Earnings Per Share - Diluted (in usd per share)$1.24$1.53$2.03
Weighted Average Shares Outstanding - Basic (in shares)506.1M shares390.1M shares390.1M shares394.0M shares392.3M shares
Weighted Average Shares Outstanding - Diluted (in shares)506.1M shares390.1M shares390.1M shares

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Corporate structure

Blue Owl Capital Corp sits at the top of its group. 53 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Blue Owl Capital Corp

  • Blue Owl Capital Corp New York, New York
    • OBDC BC 16 LLC Subsidiary · Delaware, United States
    • OBDC BC 17 LLC Subsidiary · Delaware, United States
    • OBDC BC 18 LLC Subsidiary · Delaware, United States
    • OBDC BC 21 LLC Subsidiary · Delaware, United States
    • OBDC BC 22 LLC Subsidiary · Delaware, United States
    • OBDC BC 23 LLC Subsidiary · Delaware, United States
    • OBDC BC 24 LLC Subsidiary · Delaware, United States
    • OBDC III FINANCING III LLC Subsidiary · Delaware, United States
    • OR AH I LLC Subsidiary · Delaware, United States
    • OR ATLANTA MH LLC Subsidiary · Delaware, United States
    • OR DH I LLC Subsidiary · Delaware, United States
    • OR FAIRCHESTER MH LLC Subsidiary · Delaware, United States
    • OR GARDEN STATE MH LLC Subsidiary · Delaware, United States
    • OR GH I LLC Subsidiary · Delaware, United States
    • OR HEH I LLC Subsidiary · Delaware, United States
    • OR HH I LLC Subsidiary · Delaware, United States
    • OR JEMICO MH LLC Subsidiary · Delaware, United States
    • OR LENDING III LLC Subsidiary · Delaware, United States
    • OR LENDING LLC Subsidiary · Delaware, United States
    • OR LONG ISLAND MH LLC Subsidiary · Delaware, United States
    • OR MH I LLC Subsidiary · Delaware, United States
    • OR MIDWEST MH LLC Subsidiary · Delaware, United States
    • OR NB I LLC Subsidiary · Delaware, United States
    • OR PCF I LLC Subsidiary · Delaware, United States
    • OR TORONTO MH LLC Subsidiary · Delaware, United States
    • and 27 more

Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Blue Owl Capital Corp reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Properties, in its own words

Our corporate headquarters are located at 399 Park Avenue, 37th Floor, New York, New York 10022 and are provided by the Adviser in accordance with the terms of our Administration Agreement. We believe that our office facilities are suitable and adequate for our business as it is contemplated to be conducted.

Item 2 of the 10-K filed Feb 18, 2026.4

Leadership

Who has led Blue Owl Capital Corp, and when. Pick a name to see everywhere that person has worked.

Board members and other officers (18)

Subsidiaries and ownership

Subsidiaries (Exhibit 21)

  • OBDC BC 16 LLC DELAWARE3
  • OBDC BC 17 LLC DELAWARE3
  • OBDC BC 18 LLC DELAWARE3
  • OBDC BC 21 LLC DELAWARE3
  • OBDC BC 22 LLC DELAWARE3
  • OBDC BC 23 LLC DELAWARE3
  • OBDC BC 24 LLC DELAWARE3
  • OBDC III FINANCING III LLC DELAWARE3
  • OR AH I LLC DELAWARE3
  • OR ATLANTA MH LLC DELAWARE3
  • OR DH I LLC DELAWARE3
  • OR FAIRCHESTER MH LLC DELAWARE3
  • OR GARDEN STATE MH LLC DELAWARE3
  • OR GH I LLC DELAWARE3
  • OR HEH I LLC DELAWARE3
  • OR HH I LLC DELAWARE3
  • OR JEMICO MH LLC DELAWARE3
  • OR LENDING III LLC DELAWARE3
  • OR LENDING LLC DELAWARE3
  • OR LONG ISLAND MH LLC DELAWARE3
  • OR MH I LLC DELAWARE3
  • OR MIDWEST MH LLC DELAWARE3
  • OR NB I LLC DELAWARE3
  • OR PCF I LLC DELAWARE3
All 55 listed subsidiaries
  • OR TORONTO MH LLC DELAWARE3
  • ORCC AAM LLC DELAWARE3
  • ORCC AAM RH LLC DELAWARE3
  • ORCC BC 12 LLC DELAWARE3
  • ORCC BC 13 LLC DELAWARE3
  • ORCC BC 14 LLC DELAWARE3
  • ORCC BC 15 LLC DELAWARE3
  • ORCC BC 2 LLC DELAWARE3
  • ORCC BC 3 LLC DELAWARE3
  • ORCC BC 4 LLC DELAWARE3
  • ORCC BC 5 LLC DELAWARE3
  • ORCC BC 6 LLC DELAWARE3
  • ORCC FINANCING II LLC DELAWARE3
  • ORCC FSI LLC DELAWARE3
  • ORCC III BC 12 LLC DELAWARE3
  • ORCC III BC 13 LLC DELAWARE3
  • ORCC III BC 4 LLC DELAWARE3
  • ORCC III FINANCING II LLC DELAWARE3
  • ORCC III FINANCING LLC DELAWARE3
  • ORCC PARENT LLC DELAWARE3
  • OWL ROCK CLO I, LLC DELAWARE3
  • OWL ROCK CLO II, LLC DELAWARE3
  • OWL ROCK CLO II, LTD CAYMAN ISLANDS3
  • OWL ROCK CLO III, LLC DELAWARE3
  • OWL ROCK CLO IV, LLC DELAWARE3
  • OWL ROCK CLO IV, LTD CAYMAN ISLANDS3
  • OWL ROCK CLO V, LLC DELAWARE3
  • OWL ROCK CLO V, LTD CAYMAN ISLANDS3
  • OWL ROCK CLO VII, LLC DELAWARE3
  • OWL ROCK CLO X, LLC DELAWARE3
  • OWL ROCK CLO XIV LLC DELAWARE3

The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Former names

  • Owl Rock Capital CorpOct 19, 2015 to Jul 6, 20232

Timeline

  1. Oct 1, 20268-K Results of operations31
  2. Sep 8, 20268-K Entered a material agreement; New debt or obligation32
  3. Aug 5, 20268-K Results of operations33
  4. Jul 1, 20268-K Results of operations34
  5. Jun 30, 20268-K Entered a material agreement; Ended a material agreement; New debt or obligation35
  6. Jun 26, 20268-K Shareholder vote36
  7. May 21, 20268-K Entered a material agreement; Other events37
  8. May 6, 20268-K Results of operations38
  9. Apr 16, 20268-K Entered a material agreement; Other events39
  10. Apr 1, 20268-K Results of operations40
  11. Feb 18, 20268-K Results of operations41
  12. Jan 7, 20268-K Results of operations42
  13. Jun 3, 2016New chief executive Craig Packer becomes CEO12
  14. May 2, 2016New chief executive Douglas I. Ostrover becomes CEO11

Calendar

Coming up

  1. Nov 4, 2026 · After the closeReports results for the quarter ending Sep/2026 A year earlier it reported $0.36 a share, on Nov 5, 2025.43

When it reported results

  1. Oct 1, 2026Reported quarterly or annual results31
  2. Aug 5, 2026Reported quarterly or annual results33
  3. Jul 1, 2026Reported quarterly or annual results34
  4. May 6, 2026Reported quarterly or annual results38
  5. Apr 1, 2026Reported quarterly or annual results40
  6. Feb 18, 2026Reported quarterly or annual results41
  7. Jan 7, 2026Reported quarterly or annual results42
  8. Nov 5, 2025Reported quarterly or annual results44

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

269 filings to the SEC since October 2021: 5 annual reports, 16 quarterly reports, 100 major events, 38 insider forms, 9 large holders, 101 other. The latest 20:

  1. Oct 9, 202640-33 EDGAR
  2. Oct 1, 20268-K EDGAR
  3. Sep 8, 20268-K EDGAR
  4. Aug 31, 20264 EDGAR
  5. Aug 21, 20264 EDGAR
  6. Aug 5, 202610-Q EDGAR
  7. Aug 5, 20268-K EDGAR
  8. Jul 1, 20268-K EDGAR
  9. Jun 30, 20268-K EDGAR
  10. Jun 26, 20268-K EDGAR
  11. Jun 3, 20264 EDGAR
  12. May 27, 202640-17G EDGAR
  13. May 21, 20268-K EDGAR
  14. May 19, 2026424B2 EDGAR
  15. May 19, 2026497AD EDGAR
  16. May 19, 2026497AD EDGAR
  17. May 18, 2026FWP EDGAR
  18. May 18, 2026497AD EDGAR
  19. May 18, 2026424B2 EDGAR
  20. May 12, 20264 EDGAR

The 269 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

28 open-market trades by officers, directors and large owners since October 2021: 28 buys and 0 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Aug 28, 2026Kaye Eric A.DirectorBuy1,000$11.34$11.3KForm 4
Aug 20, 2026Nicholson LoganPresidentBuy3,000$11.29$33.9KForm 4
Jun 2, 2026Nicholson LoganPresidentBuy3,000$11.31$33.9KForm 4
May 11, 2026Kaye Eric A.DirectorBuy1,000$11.21$11.2KForm 4
Feb 27, 2026Nicholson LoganPresidentBuy10,000$11.32$113.2KForm 4
Feb 25, 2026Kaye Eric A.DirectorBuy1,000$11.91$11.9KForm 4
Nov 26, 2025Reddy NeenaVice President and SecretaryBuy7,890$13.06$103.0KForm 4
Nov 18, 2025Nicholson LoganPresidentBuy25,000$11.75$293.8KForm 4
Nov 18, 2025Packer CraigChief Executive OfficerBuy83,200$11.75$977.6KForm 4
Nov 12, 2025Temple ChrisDirectorBuy8,000$12.03$96.2KForm 4
Nov 10, 2025Weiler MelissaDirectorBuy10,000$11.99$119.9KForm 4
Aug 15, 2025Nicholson LoganPresidentBuy15,553$14.19$220.7KForm 4
May 27, 2025Woolridge VictorDirectorBuy6,915$14.45$99.9KForm 4
Mar 6, 2025Temple ChrisDirectorBuy15,000$14.80$222.0KForm 4
Aug 27, 2024DAlelio Edward HDirectorBuy2,500$15.02$37.5KForm 4
Aug 21, 2024Nicholson LoganPresidentBuy10,000$14.66$146.6KForm 4
Mar 5, 2024DAlelio Edward HDirectorBuy3,000$15.07$45.2KForm 4
May 26, 2023Temple ChrisDirectorBuy5,900$13.30$78.5KForm 4
May 25, 2023Swatt MatthewCo-Treasurer and Co-ControllerBuy65$13.15$855Form 4
May 23, 2023Kaye Eric A.DirectorBuy3,749$13.34$50.0KForm 4

All 28 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
California State Teachers Retirement System16,445,728$178.8M0.2%No change
State of New Jersey Common Pension Fund A15,263,873$165.9M74.3%No change
Oregon Public Employees Retirement Fund14,568,973$158.4M1.7%−400,000
Strs Ohio13,465,473$146.4M0.5%+2,523,497
Fmr LLC11,772,285$128.0M0.0%−74,832
Morgan Stanley9,899,490$107.6M0.0%+403,243
Van Eck Associates Corp9,840,313$107.0M0.1%−1,481,269
Bank Of America Corp /de/9,797,216$106.5M0.0%−984,182
Cresset Asset Management, LLC7,698,410$86.1M0.3%+408,864
UBS Group AG7,353,055$79.9M0.0%−2,293,650
Ameriprise Financial Inc5,694,724$61.9M0.0%−349,090
Royal Bank Of Canada5,377,938$58.5M0.0%−556,446
Wells Fargo & Company/mn4,779,782$52.0M0.0%+84,180
Citadel Advisors LLC4,747,449$51.6M0.0%+3,089,039
Generali Asset Management SPA SGR4,351,794$47.3M0.9%−26,013
Robert Wood Johnson Foundation4,218,864$45.9M56.6%No change
Sound Income Strategies, LLC4,204,742$45.7M2.1%+227,994
Private Management Group Inc4,056,747$44.1M1.2%+212,119
Hamilton Lane Advisors LLC3,406,230$37.0M24.9%No change
Jpmorgan Chase & Co3,316,143$37.0M0.0%+390,989
Lalia Capital, LLC3,215,467$35.0M17.0%+83,397
OMERS ADMINISTRATION Corp3,172,115$34.5M0.2%+86,881
Ares Management LLC2,872,757$31.2M1.4%+25,000
Caz Investments LP2,757,610$30.0M9.9%+1,633,305
Liberty Mutual Group Asset Management Inc.2,669,872$29.0M2.5%No change

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How Blue Owl Capital Corp is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARBlue Owl Capital Corp1
  • CIK0001655888
  • Employer ID (EIN)47-54024604
  • Filer statusLarge accelerated filer not an emerging growth company; not a smaller reporting company; not a shell company4
  • Incorporated inMaryland4
  • Fiscal year endsDecember 311
  • Business address399 Park Avenue, New York, NY 100221
  • Phone(212) 419-30001
  • Shares outstanding493,142,569 as of Jul 31, 202610
  • Public float$7.3B as of Jun 30, 20254
  • AuditorKPMG LLP, New York, New York PCAOB ID 185; it also attests to the company’s internal control over financial reporting4
  • On EDGAR sinceOct 19, 20151
  • Filings708 in all: 8-K (205), 4 (134), 497AD (55), DEFA14A (37), 10-Q (31), 425 (25), 3 (23), 424B2 (19)1
    All 54 form types

    SC 13G/A (19), CORRESP (15), 40-17G (11), DEF 14A (11), 10-K (10), FWP (10), SC 13G (10), N-2/A (9), 497 (8), D/A (7), 144 (6), 40-APP/A (6), 40-APP (4), EFFECT (4), N-2 (4), POS EX (3), PRE 14A (3), 40-17G/A (2), 40-33 (2), 8-K/A (2), APP NTC (2), APP ORDR (2), D (2), DRS (2), N-23C-2 (2), N-2ASR (2), SCHEDULE 13G/A (2), 10-12G (1), 10-12G/A (1), 10-K/A (1), 10-Q/A (1), 144/A (1), 305B2 (1), 424B3 (1), 5 (1), 8-A12B (1), CERT (1), DRS/A (1), N-14 8C (1), N-14 8C/A (1), N-2MEF (1), N-54A (1), SC 13D (1), SC TO-C (1), SC TO-I (1), SC TO-I/A (1)

  • Latest filingsAnnual report (10-K) Feb 18, 2026
    Quarterly report (10-Q) Aug 5, 2026
    Proxy statement (DEF 14A) Apr 1, 2026
    Latest 8-K (8-K) Oct 1, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, $0.01 par value per shareOBDCThe New York Stock Exchange

From the cover page of the 10-K filed Feb 18, 2026 (Section 12(b) of the Exchange Act).4

Risk factors and legal proceedings

The risks Blue Owl Capital Corp names in Item 1A of its 10-K filed Feb 18, 2026: 75 risks under these headings, as written.4

  • We are subject to risks related to macroeconomic factors.
  • We are subject to risks related to our business and operations.
  • We are subject to risks related to our Adviser and its affiliates.
  • We are subject to risks related to business development companies.
  • We are subject to risks related to our investments.
  • We are subject to risks related to an investment in our common stock.
  • We are subject to risks related to an investment in our unsecured notes.
  • We are subject to risks related to U.S. federal income tax.
  • We are subject to general risks.
  • Macroeconomic Factors
  • Difficult market and geopolitical conditions could have a significant adverse effect on our business, financial condition and results of operations.
  • Capital markets disruption and economic uncertainty could have a material adverse effect on our business, financial condition or results of operations.
The other 64 risks
  • Future increases in inflation may adversely affect the business, results of operations and financial condition of our portfolio companies.
  • Fluctuations in interest rates could have a material adverse effect on our business and that of our portfolio companies.
  • Risks Related to Our Business
  • The lack of liquidity in our investments may adversely affect our business.
  • We borrow money, which magnifies the potential for gain or loss and may increase the risk of investing in us.
  • Defaults and provisions under our current borrowings or any future borrowing facility or notes may adversely affect our business, financial condition, results of operations and cash flows.
  • If we are unable to obtain additional debt financing, or if our borrowing capacity is materially reduced, our business could be materially adversely affected.
  • Our ability to achieve our investment objective depends on our Adviser’s ability to manage and support our investment process. If our Adviser were to lose a significant number of its key professionals, or terminate the Investment Advisory Agreement, our ability to achieve our investment objective could be significantly harmed.
  • Our ability to achieve our investment objective also depends to a significant extent upon Blue Owl’s relationships with corporations, financial institutions and investment firms, the inability of Blue Owl to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business.
  • Our cash and cash equivalents could be adversely affected if the financial institutions in which we hold our cash and cash equivalents fail.
  • We may face increasing competition for investment opportunities, which could delay further deployment of our capital, reduce returns and result in losses.
  • Our investment portfolio is recorded at fair value as determined in good faith by our Adviser in accordance with procedures approved by our Board and, as a result, there is and will be uncertainty as to the value of our portfolio investments.
  • Our Board may change our operating policies and strategies without prior notice or shareholder approval, the effects of which may be adverse to our shareholders.
  • Any unrealized depreciation we experience on our portfolio may be an indication of future realized losses, which could reduce our income available for distribution.
  • Cybersecurity risks and cyber data security incidents could adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information and confidential information in our possession and damage to our business relationships.
  • Use of AI technologies by us could lead to the exposure of our data or other adverse effects and increase competitive, operational, legal, and regulatory risks in ways that we cannot predict.
  • We are subject to risks in using custodians, counterparties, administrators and other agents.
  • Increased data protection regulation may result in increased complexities and risk in connection with the operation of our business.
  • We and our portfolio companies are subject to increasing scrutiny from certain investors, third party assessors, regulators and our shareholders with respect to ESG-related topics.
  • We are subject to increasing scrutiny from regulators with respect to ESG-related issues and the regulatory disclosure landscape surrounding related topics continues to evolve.
  • We may be the target of litigation or similar proceedings in the future and we are subject to public perception risks.
  • Risks Related to Our Adviser and Its Affiliates
  • Our Adviser and its affiliates, including our officers and some of our directors, may face conflicts of interest caused by compensation arrangements with us and our affiliates, which could result in increased risk-taking or speculative investments, or cause our Adviser to use substantial leverage.
  • The time and resources that individuals associated with our Adviser devote to us may be diverted, and we may face additional competition due to, among other things, the fact that neither our Adviser nor its affiliates is prohibited from raising money for or managing another entity that makes the same types of investments that we target.
  • Our Adviser and its affiliates may face conflicts of interest with respect to services performed for their respective other accounts and clients or issuers in which we may invest.
  • Reductions, waivers or absorptions of fees and costs can temporarily result in higher returns to shareholders than they would otherwise receive if full fees and costs were charged.
  • Products within Blue Owl’s Real Assets platform may enter into sale lease-back transactions with our portfolio companies or with borrowers under our credit facilities.
  • Our access to confidential information may restrict our ability to take action with respect to some investments, which, in turn, may negatively affect our results of operations.
  • We may be obligated to pay our Adviser incentive fees even if we incur a net loss due to a decline in the value of our portfolio and even if our earned interest income is not payable in cash.
  • Our ability to enter into transactions with our affiliates is restricted.
  • We may make investments that could give rise to a conflict of interest.
  • Our Adviser’s liability is limited under the Investment Advisory Agreement, and we are required to indemnify our Adviser against certain liabilities, which may lead our Adviser to act in a riskier manner on our behalf than it would when acting for its own account.
  • There are risks associated with any potential merger with or purchase of assets of another fund.
  • Our Adviser’s failure to comply with pay-to-play laws, regulations and policies could have an adverse effect on our Adviser, and thus, us.
  • Risks Related to Business Development Companies
  • The requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets could result in our failure to maintain our status as a BDC.
  • Failure to maintain our status as a BDC would reduce our operating flexibility.
  • Regulations governing our operation as a BDC and RIC affect our ability to raise capital and the way in which we raise additional capital or borrow for investment purposes, which may have a negative effect on our growth. As a BDC, the necessity of raising additional capital may expose us to risks, including risks associated with leverage.
  • Risks Related to Our Investments
  • Our investments in portfolio companies may be risky, and we could lose all or part of our investments.
  • Second-Lien and Mezzanine Debt.
  • We have invested and may continue to invest through joint ventures, partnerships and other special purpose vehicles and our investments through these vehicles may entail greater risks, or risks that we otherwise would not incur, if we otherwise made such investments directly.
  • Any strategic investments that we pursue are subject to risks and uncertainties.
  • Broadly syndicated loans, including “covenant-lite” loans, may expose us to different risks, including with respect to liquidity, price volatility, ability to restructure loans, credit risks and less protective loan documentation, than is the case with loans that contain financial maintenance covenants.
  • We may be subject to risks associated with our investments in bank loans.
  • If the assets securing the loans that we make decrease in value, then we may lack sufficient collateral to cover losses.
  • We may suffer a loss if a portfolio company defaults on a loan and the underlying collateral is not sufficient.
  • We may not realize any income or gains from our equity investments.
  • An investment strategy focused primarily on privately held companies presents certain challenges, including the lack of available information about these companies.
  • To the extent we invest in publicly traded companies, we may be unable to obtain financial covenants and other contractual rights, which subjects us to additional risks.
  • The credit ratings of certain of our investments may not be indicative of the actual credit risk of such rated instruments.
  • Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.
  • A redemption of convertible securities held by us could have an adverse effect on our ability to achieve our investment objective.
  • To the extent original issue discount (“OID”) and payment-in-kind (“PIK”) interest income constitute a portion of our income, we will be exposed to risks associated with the deferred receipt of cash representing such income.
  • Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.
  • Our portfolio companies may be highly leveraged.
  • If we cannot obtain debt financing or equity capital on acceptable terms, our ability to acquire investments and to expand our operations will be adversely affected.
  • Defaults by our portfolio companies could jeopardize a portfolio company’s ability to meet its obligations under the debt or equity investments that we hold which could harm our operating results.
  • Subordinated liens on collateral securing debt investments that we may make to portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us.
  • Certain of our investments may be adversely affected by laws relating to fraudulent conveyance or voidable preferences.
  • There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.
  • We generally will not control the business operations of our portfolio companies and, due to the illiquid nature of our holdings in our portfolio companies, we may not be able to dispose of our interests in our portfolio companies.
  • We and our portfolio companies are, and will continue to be, exposed to risks associated with changes in interest rates.
  • International investments create additional risks.
  • We expose ourselves to risks when we engage in risk management activities.
  • The market structure applicable to derivatives imposed by the Dodd-Frank Act, the U.S. Commodity Futures Trading Commission (“CFTC”) and the SEC may affect our ability to use over-the-counter (“OTC”) derivatives for hedging purposes.
  • Our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.
  • We may enter into total return swaps that would expose us to certain risks, including market risk, liquidity risk and other risks similar to those associated with the use of leverage.

Legal proceedings

Neither we nor the Adviser are currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceeding threatened against us. From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. Our business is also subject to extensive regulation, which may result in regulatory proceedings against us. While the outcome of any such future legal or regulatory proceedings cannot be predicted with certainty, we do not expect that any such future proceedings will have a material effect upon our financial condition or results of operations.

The opening of Item 3, Legal Proceedings.4

Sources

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