Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV
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Published May 10, 2025 | By LineUp Market

Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV
Introduction & Market Landscape

Blue Owl Capital Corporation (NYSE: OBDC), a leading business development company (BDC), unveiled its Q1 2025 earnings on May 8, revealing robust portfolio expansion even as market dynamics shifted amid the Federal Reserve's pivot to rate cuts.

While the company’s total portfolio rose to $17.7 billion, net asset value (NAV) per share saw a slight dip to $15.14, down from $15.26 in Q4 2024. The modest NAV decline reflects the broader impact of falling interest rates on floating-rate lending structures.

Despite these macro headwinds, Blue Owl reaffirmed its commitment to shareholder returns, maintaining a $0.37 per share regular dividend and announcing a $0.01 per share supplemental payout.

Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV
Quarterly Performance Snapshot

  • GAAP Net Investment Income (NII): $0.41 per share (vs. $0.47 in Q4 2024)

  • Adjusted NII: $0.39 per share

  • GAAP Net Income: $0.49 per share (up from $0.40)

  • Net Gains: $0.08 per share, driven by realized/unrealized portfolio appreciation

Return on Equity (ROE):

  • GAAP ROE on NII: 10.7%

  • GAAP ROE on Net Income: 12.9%

  • Adjusted ROE on NII: 10.2%

  • Adjusted ROE on Net Income: 8.5%

These results reflect stable underlying earnings with some margin compression from lower investment income—an expected result as rates begin to normalize.

Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV


Expanding Portfolio & Lending Focus

OBDC’s portfolio continues to scale meaningfully. As of March 31, 2025:

  • Total investments: $17.7 billion (up from $13.2B in Q4 2024)

  • Portfolio companies: 236 (vs. 227 in Q4)

  • Senior secured loans: 82% of the portfolio

  • First lien debt: 77%

  • Top industry exposure: Internet software & services (10.9%)

This growth includes merger-driven expansion, as previously guided in earlier earnings reports. The portfolio remains highly diversified across 30 industries, with the top 10 positions comprising just 22% of total fair value.

The largest single holding, Associa, accounts for 3.6% of the total portfolio value.

Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV


Yields & Credit Quality Trends

As anticipated, yields have moderated:

  • Weighted avg. yield (accruing debt/income instruments): 10.7% (vs. 12.1% in Q1 2024)

  • Spread over base rate: 5.9% (vs. 6.6% a year earlier)

This decline reflects compression across the broader BDC space due to rate adjustments. However, with 97% of debt investments floating-rate, OBDC maintains solid income-generating potential—even in a rate-cutting cycle.

Balance Sheet Strength & Financing

  • Available liquidity: $3.0 billion

  • Debt-to-equity ratio: 1.26x (vs. 1.19x in Q4 2024)

  • Unsecured debt share: 50%

  • Weighted avg. debt maturity: ~4.8 years

  • Investment grade ratings: Maintained from four agencies

The capital structure provides flexibility and stability, supporting both opportunistic deployment and prudent risk management.

Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV


Dividend Stability & Shareholder Returns

For Q2 2025, OBDC declared:

  • Regular dividend: $0.37 per share (unchanged)

  • Supplemental dividend: $0.01 per share (Q1 earnings-linked)

The total annualized dividend yield stands at 10.0%, offering investors strong income despite NAV softness. Since Q3 2023, the regular dividend has remained consistent, while supplemental payouts are adjusted based on quarterly performance.


Portfolio Health & Forward Outlook

  • Non-accruals: 4 companies (1.4% of cost; 0.8% of fair value)

  • Borrower avg. EBITDA: $215 million (up from $202M in Q4)

  • Interest coverage: Improved to 1.7x from 1.6x

  • Net investment commitments: $1.2 billion

  • Net fundings: -$166 million (indicating selective deployment)

Despite interest rate tailwinds easing, the company’s portfolio continues to demonstrate resilience, driven by strong underwriting and senior secured exposure.

Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV


Is OBDC a Buy in Today’s Market?

OBDC's performance suggests a well-managed BDC that remains committed to shareholder value while navigating an evolving macro backdrop. With:

  • Continued growth in core assets

  • Strong dividend coverage

  • Solid portfolio credit quality

  • Ample liquidity

…it presents a compelling income-generating option for investors, even amid market uncertainty.

Blue Owl Capital Q1 2025: Portfolio Grows to $17.7B Despite Slight Dip in NAV


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Disclaimer: The information presented here is for educational and informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult a licensed financial advisor before making any investment decisions. The author and platform are not liable for any financial losses arising from investment actions taken based on this content.