Blue Owl Technology Finance Corp. Files 2023 Annual Report

TL;DR

<b>Blue Owl Technology Finance Corp. has filed its 2023 10-K annual report detailing its financial performance and business operations.</b>

AI Summary

Blue Owl Technology Finance Corp. (OTF) filed a Annual Report (10-K) with the SEC on March 6, 2024. Blue Owl Technology Finance Corp. filed its 10-K annual report for the fiscal year ending December 31, 2023. The company's former name was Owl Rock Technology Finance Corp., with a name change effective July 23, 2018. The filing is for the 1934 Act and has SEC file number 814-01284. The business and mailing address is 399 Park Avenue, New York, NY 10022. The company is incorporated in Maryland (MD) with its fiscal year ending on December 31.

Why It Matters

For investors and stakeholders tracking Blue Owl Technology Finance Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Blue Owl Technology Finance Corp.'s financial health, operational risks, and strategic direction for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's performance, understand its risk factors, and make informed investment decisions regarding its securities.

Risk Assessment

Risk Level: — Blue Owl Technology Finance Corp. shows moderate risk based on this filing. The company faces various risks including economic downturns, market volatility, interest rate fluctuations, and cybersecurity threats, as detailed in its extensive risk factor disclosures.

Analyst Insight

Review the detailed risk factors section of the 10-K to understand specific threats to Blue Owl Technology Finance Corp.'s operations and investments.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-06 — Filing Date (Date of filing)
• 2018-07-23 — Date of Name Change (Former company name)

Key Players & Entities

• Blue Owl Technology Finance Corp. (company) — Filer name
• Owl Rock Technology Finance Corp. (company) — Former company name
• 399 Park Avenue (location) — Business and mailing address
• New York (location) — City in business and mailing address
• NY (location) — State in business and mailing address
• MD (location) — State of incorporation
• 1934 Act (regulation) — SEC Act
• 814-01284 (identifier) — SEC File Number

FAQ

Risk Factors

• Economic Risk [high — market]: The company is subject to general economic conditions, including potential recessions, inflation, and capital market disruptions.
• Business and Operations Risk [medium — operational]: Risks associated with the company's core business and day-to-day operations.
• U.S. Federal Income Tax Risk [medium — regulatory]: Potential risks related to U.S. federal income taxation.
• Leverage Risk [medium — financial]: Risks associated with the company's use of leverage in its financing activities.
• Interest Rate and Cybersecurity Risk [medium — market]: Exposure to risks stemming from changes in interest rates and cybersecurity threats.

Industry Context

Blue Owl Technology Finance Corp. operates as a business development company (BDC), focusing on providing capital to technology-enabled companies. BDCs are regulated investment companies that invest in the debt and equity of small and medium-sized businesses.

Regulatory Implications

As a business development company, Blue Owl Technology Finance Corp. is subject to specific regulations under the Investment Company Act of 1940 and other securities laws, impacting its investment strategies and reporting requirements.

What Investors Should Do

1. Analyze the company's investment portfolio and performance metrics detailed within the 10-K.
2. Evaluate the specific risk factors outlined, particularly those related to market conditions and leverage.
3. Compare the company's financial results and disclosures against previous filings to identify trends and changes.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous quarterly or annual filings.

Key Financial Figures

• $0.01 — Section 12(g) of the Act: Common Stock, $0.01 par value per share Indicate by check
• $90.6 billion — viser or its affiliates have originated $90.6 billion aggregate principal amount of investmen
• $86.9 billion — ts across multiple industries, of which $86.9 billion of aggregate principal amount of invest
• $50 million — es with an enterprise value of at least $50 million and that are backed by venture capital
• $20 million — ts will typically range in size between $20 million and $500 million. Our expected portfoli
• $500 million — y range in size between $20 million and $500 million. Our expected portfolio composition wil
• $6.1 billion — mpanies with an aggregate fair value of $6.1 billion. As of December 31, 2023, our portfolio
• $48.3 million — r portfolio companies was approximately $48.3 million based on fair value. As of December 31,
• $646 m — had weighted average annual revenue of $646 million, weighted average annual EBITDA o
• $173 million — lion, weighted average annual EBITDA of $173 million and weighted average enterprise value o
• $4.0 billion — nd weighted average enterprise value of $4.0 billion. As of December 31, 2023, investments w
• $526 million — ies had weighted average annual revenue $526 million and a weighted average enterprise value
• $9.8 billion — a weighted average enterprise value of $9.8 billion. Through August 1, 2021, we conducted
• $3.1 billion — fferings on August 1, 2021, we received $3.1 billion in total Capital Commitments from inves
• $80.9 million — al Commitments from investors, of which $80.9 million is from entities affiliated with or rel

Filing Documents

• ortfc-20231231.htm (10-K) — 8784KB
• tech-exhibit474q23.htm (EX-4.7) — 425KB
• tech-exhibit1414q23.htm (EX-14.1) — 78KB
• tech-exhibit2114q23.htm (EX-21.1) — 8KB
• tech-exhibit3114q23.htm (EX-31.1) — 10KB
• tech-exhibit3124q23.htm (EX-31.2) — 10KB
• tech-exhibit3214q23.htm (EX-32.1) — 5KB
• tech-exhibit3224q23.htm (EX-32.2) — 5KB
• image_0.jpg (GRAPHIC) — 105KB
• 0001747777-24-000004.txt (&nbsp;) — 29429KB
• ortfc-20231231.xsd (EX-101.SCH) — 95KB
• ortfc-20231231_cal.xml (EX-101.CAL) — 60KB
• ortfc-20231231_def.xml (EX-101.DEF) — 457KB
• ortfc-20231231_lab.xml (EX-101.LAB) — 787KB
• ortfc-20231231_pre.xml (EX-101.PRE) — 593KB
• ortfc-20231231_htm.xml (XML) — 6370KB

Risk Factors

Item 1A. Risk Factors 36

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 82 Item 1C. C ybersecurit y 82

Properties

Item 2. Properties 82

Legal Proceedings

Item 3. Legal Proceedings 83

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 83 PART II

Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 84

Reserved

Item 6. Reserved 88

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 88

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 130

Consolidated Financial Statements and Supplementary Data

Item 8. Consolidated Financial Statements and Supplementary Data F- 1

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 130

Controls and Procedures

Item 9A. Controls and Procedures 130

Other Information

Item 9B. Other Information 130

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 130 PART II I

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 131

Executive Compensation

Item 11. Executive Compensation 143

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 145

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 146 Item 14. Principal Accounting Fees and Services 149 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 150

Form 10-K Summary

Item 16. Form 10-K Summary 153

Signatures

Signatures 154 ii CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about Blue Owl Technology Finance Corp. (the "Company," "we" or "our"), our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation: an economic downturn could impair our portfolio companies' ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies; an economic downturn could disproportionately impact the companies that we intend to target for investment, potentially causing us to experience a decrease in investment opportunities and diminished demand for capital from these companies; the impact of elevated interest and inflation rates, ongoing supply chain and labor market disruptions, including those as a result of strikes, work stoppages or accidents, instability in the U.S. and international banking systems, and the risk of recession or a shutdown of government services could imp

Business

Item 1. Business. Our Company Blue Owl Technology Finance Corp. is a Maryland corporation formed on July 12, 2018. We are focused primarily on originating and making debt and equity investments in technology-related companies based primarily in the United States. We originate and invest in senior secured or unsecured loans, subordinated loans or mezzanine loans, and equity-related securities including common equity, warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company's common equity. Our investment objective is to maximize total return by generating current income from debt investments and other income producing securities, and capital appreciation from our equity and equity-linked investments. We may hold our investments directly or through special purpose vehicles. Since our Adviser's affiliates began investment activities in April 2016 through December 31, 2023, our Adviser or its affiliates have originated $90.6 billion aggregate principal amount of investments across multiple industries, of which $86.9 billion of aggregate principal amount of investments prior to any subsequent exits or repayments, was retained by either us or a corporation or fund advised by our Adviser or its affiliates. We invest in a broad range of established and high growth technology-related companies that are capitalizing on the large and growing demand for technology products and services. These companies use technology extensively to improve their business processes, applications and opportunities or seek to grow through technological developments and innovations. These companies operate in technology-related industries or sectors which include, but are not limited to, application software, systems software, healthcare information technology, technology services and infrastructure, financial technology and internet and digital media. Within each industry or sector, we intend to invest in companies that are devel

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View this 10-K filing on SEC EDGAR