Q2 2025 Blue Owl Capital Corp Earnings Call Transcript
Key Points
- Blue Owl Capital Corp (OBDC) achieved a 10.6% ROE for the second quarter, marking the 12th consecutive quarter of double-digit ROE.
- The company reported strong portfolio performance with solid revenue and EBITDA growth among borrowers.
- OBDC's defensive strategy focusing on high-quality, upper middle market businesses resulted in below industry average nonaccrual and loss rates.
- The merger with OBDE has provided incremental capacity for strategic equity and joint venture investments, enhancing diversification and expanding reach.
- OBDC maintained a healthy liquidity position with over $4 billion in total cash and capacity, providing ample room for new investments.
- Net asset value per share decreased to $15.03, down $0.11 from the prior quarter.
- The current market environment is challenging with muted M&A activity affecting overall deal flow.
- There were modest write-downs in Q2 on a few companies impacted by tariffs, although these were not new underperforming names.
- Spread pressure from last year has stabilized but remains a concern in the current deal environment.
- The equipment leasing joint venture, while promising, may take time to become a meaningful contributor to OBDC's income.
Good morning, everyone, and welcome to Blue Owl Capital Corporation Second Quarter 2025 Earnings Call. As a reminder, this call is being recorded. At this time, I'd like to turn the call over to Mike Mosticchio, Head of BDC Investor Relations. Please go ahead.
Thank you, operator, and welcome to Blue Owl Capital Corporation's Second Quarter 2025 Earnings Conference Call. Yesterday, Blue Owl Capital Corporation issued its earnings release and posted an earnings presentation for the second quarter ended June 30, 2025.
These should be reviewed in connection with the company's 10-Q filed yesterday with the SEC. All materials referenced during today's call, including the earnings press release, earnings presentation and 10-Q are available on the Investors section of the company's website at bluelowlcapitalcorporation.com.
Joining us on the call today are Craig Packer, Chief Executive Officer; Logan Nicholson, President; and Jonathan Lamm, Chief Financial Officer.
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