OTF
Financial ServicesBlue Owl Technology Finance Corp. · Asset Management · $5B
What is Blue Owl Technology Finance Corp.?
Blue Owl Technology Finance Corp. (OTF) is a business development company focused on lending to and investing in upper middle-market technology and software companies across the United States. It operates as an externally managed BDC headquartered in New York.
OTF generates income by deploying capital into technology-oriented businesses through a range of debt and equity instruments. Its primary focus is senior secured loans, though it also extends subordinated and mezzanine debt, and takes equity positions through common shares, warrants, and preferred stock. By concentrating on the upper middle market — companies too large for traditional small-business lenders but not yet public — OTF targets a segment where deal terms can be more favorable and competition is relatively limited.
The company is based in New York, New York, and began operations in 2018.
- Senior secured and unsecured loans to tech-focused companies
- Subordinated and mezzanine debt financing
- Equity investments including warrants and preferred stock
- Focused exposure to upper middle-market software businesses
Is OTF a Good Stock to Buy?
UQS Score rates OTF as Good overall, reflecting a balanced but nuanced profile across the five quality pillars.
The Quality pillar stands out as the strongest element of OTF's profile, suggesting the underlying portfolio and earnings generation are above average for a BDC. The Growth pillar also registers as Good, indicating the company has been expanding its investment book at a meaningful pace relative to peers in the financial services sector.
The Risk pillar is rated Weak, which is a meaningful flag for income-oriented investors — BDCs carry inherent credit and leverage risks, and OTF's profile reflects that. The Moat pillar is Neutral, consistent with the competitive nature of private credit markets.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does OTF pay dividends?
Yes — Blue Owl Technology Finance Corp. pays a dividend.
OTF pays a regular dividend, which is typical for business development companies — BDCs are required by regulation to distribute the majority of their taxable income to shareholders. This makes OTF relevant to income-focused investors. The sustainability of that dividend depends on portfolio credit quality and interest income, both of which are reflected in the Quality and Risk pillar assessments available to Pro members.
When does OTF report earnings?
Blue Owl Technology Finance Corp. reports earnings on a quarterly cadence, consistent with US-listed BDCs and financial services companies.
As a BDC, OTF's quarterly results center on net investment income, portfolio fair value changes, and new origination activity. Performance tends to track interest rate conditions and the credit health of its technology-sector borrowers. Investors should monitor both income generation and any changes to non-accrual rates.
For the most recent quarter's results and management commentary, visit Blue Owl Technology Finance Corp.'s investor relations page directly.
OTF Price History
-17.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
OTF Long-term Outlook
OTF's Growth pillar rating of Good suggests the company has been expanding its portfolio at a rate that compares favorably within the BDC space. However, the Weak Risk rating signals that investors should weigh credit exposure carefully — particularly in a technology lending book where borrower quality can shift with broader market conditions. The Attractive Valuation label indicates the market may not be fully pricing in the company's income-generating capacity, which could be relevant for long-term income investors.
Growth drivers
- Continued deployment into under-served upper middle-market technology borrowers
- Rising demand for private credit as an alternative to traditional bank lending
- Potential for expanded equity co-investment returns alongside debt positions
Key risks
- Credit deterioration among technology-sector borrowers in a slower growth environment
- Leverage and interest rate sensitivity inherent to BDC structures
- Competitive pressure in private credit markets compressing deal spreads
OTF vs Peers
OTF operates in a broader alternative asset and specialty finance landscape alongside several distinct peers.
Hamilton Lane focuses on private markets investment management and advisory services rather than direct lending, giving it a fee-based revenue model distinct from OTF's interest-income-driven BDC structure.
Sprott specializes in precious metals and real assets investment products, making its portfolio composition and investor base quite different from OTF's technology-credit focus.
This Athene instrument represents fixed-rate preferred capital, appealing to income investors seeking a different risk profile than OTF's equity-linked BDC distributions.
Frequently Asked Questions
What does Blue Owl Technology Finance Corp. do?
Blue Owl Technology Finance Corp. is a business development company that lends to and invests in upper middle-market technology and software businesses. It provides senior secured loans, mezzanine debt, and equity instruments such as warrants and preferred stock, generating income primarily from interest and fees on its portfolio.
Does OTF pay dividends?
Yes, OTF pays a regular dividend. As a BDC, it is required to distribute the majority of its taxable income to shareholders. The dividend level reflects the net investment income generated by its technology-focused lending portfolio. Investors should review current distribution announcements on the company's investor relations page.
When does OTF report earnings?
Blue Owl Technology Finance Corp. reports earnings on a quarterly basis, in line with standard US-listed BDC practice. For the exact schedule and most recent results, check the company's investor relations page, as specific dates are subject to change.
Is OTF a good stock to buy?
UQS Score rates OTF as Good overall. Its Quality pillar is Strong and its Valuation pillar is Attractive, which are positives for income-oriented investors. However, the Risk pillar is rated Weak, reflecting the credit and leverage risks common to BDCs. The full pillar breakdown is available to Pro members.
Is OTF overvalued?
The UQS Valuation pillar for OTF is rated Attractive, suggesting the stock may be trading at a reasonable level relative to its fundamentals within the BDC sector. This does not constitute a price prediction, but it does indicate the market may not be fully pricing in OTF's income potential. See the full valuation metrics in a Pro account.
How does OTF compare to its competitors?
OTF is differentiated by its concentrated focus on technology and software lending within the upper middle market — a narrower mandate than many alternative asset managers. Peers like Hamilton Lane and Sprott operate with different business models centered on advisory fees or commodity-linked products rather than direct credit deployment.
What is OTF's market cap bracket?
OTF is classified as a mid-cap company. This places it in a range where institutional coverage exists but the stock may receive less attention than large-cap financial services names, potentially contributing to the Attractive valuation signal in the UQS Score.
Who founded Blue Owl Technology Finance Corp.?
Blue Owl Technology Finance Corp. began operations in 2018 and is managed by Blue Owl Capital, a prominent alternative asset manager. Detailed founding and management history is publicly available through Blue Owl Capital's corporate disclosures and the company's SEC filings.
Is OTF a long-term quality investment?
From a long-term quality perspective, OTF's Strong Quality pillar and Good Growth pillar suggest a portfolio generating consistent income with expanding deployment. The Weak Risk pillar is a factor to monitor over time, particularly around credit cycles. Long-term suitability depends on an investor's income needs and risk tolerance.
What is the main competitive advantage of Blue Owl Technology Finance Corp.?
OTF's focus on upper middle-market technology companies gives it access to a borrower segment that is underserved by traditional banks and too large for small-business lenders. This specialization, backed by Blue Owl Capital's origination network, supports deal flow in a segment where pricing can be more favorable.
What sector does OTF belong to?
OTF is classified in the Financial Services sector, specifically as a business development company. BDCs occupy a unique regulatory structure that requires high income distribution, making them distinct from traditional banks, asset managers, or insurance companies within the broader financial services universe.
Is OTF a growth stock or value stock?
OTF leans toward an income and value profile. Its Valuation pillar is rated Attractive and it pays regular dividends, which aligns more with income-oriented investors than pure growth seekers. The Good Growth pillar does indicate portfolio expansion, but the primary return driver for most BDC investors is dividend income rather than capital appreciation.
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Pro Analysis
OTF — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 21, 2026 | 55.2 | 56.7 | 43.0 | 72.4 | 24.5 | 81.2 | +0.2 |
| May 20, 2026 | 55.0 | 56.7 | 43.0 | 72.4 | 24.5 | 79.9 | -0.1 |
| May 14, 2026 | 55.1 | 56.7 | 43.0 | 72.4 | 24.5 | 80.1 | -0.2 |
| May 12, 2026 | 55.3 | 56.7 | 43.0 | 72.4 | 24.5 | 81.2 | -8.9 |
| May 7, 2026 | 64.2 | 85.5 | 43.0 | 72.4 | 29.0 | 88.0 | +0.1 |
| Apr 19, 2026 | 64.1 | 85.5 | 43.0 | 72.4 | 29.0 | 87.4 | 0.0 |
| Apr 18, 2026 | 64.1 | 85.5 | 43.0 | 72.4 | 29.0 | 87.6 | -1.9 |
| Apr 11, 2026 | 66.0 | 85.5 | 43.0 | 72.4 | 29.0 | 100.0 | 0.0 |
| Apr 9, 2026 | 66.0 | 85.8 | 43.0 | 72.4 | 29.0 | 100.0 | +0.1 |
| Apr 4, 2026 | 65.9 | 85.1 | 43.0 | 72.4 | 29.0 | 100.0 | +0.1 |
OTF — Pillar Breakdown
Quality
— 56.7/100 (25%)Blue Owl Technology Finance Corp. shows solid profitability with healthy returns on capital and reasonable margins.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 72.4/100 (20%)Blue Owl Technology Finance Corp. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 24.5/100 (15%)Blue Owl Technology Finance Corp. presents elevated risk with concerns around leverage or financial stability.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 81.1/100 (15%)Blue Owl Technology Finance Corp. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 43/100 (25%)Blue Owl Technology Finance Corp. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for OTF.
Score Composition
Financial Data
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How is the OTF UQS Score Calculated?
The UQS (Unified Quality Score) for Blue Owl Technology Finance Corp. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Blue Owl Technology Finance Corp.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Blue Owl Technology Finance Corp. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.