Business development companies attract attention from income-focused investors, but the structure itself confuses many people who encounter it for the first time. A BDC is a type of closed-end fund, registered under the Investment Company Act of 1940, that makes loans or equity investments primarily in small and mid-sized U.S. companies. BDCs must distribute at least 90% of taxable income to shareholders, which is why they tend to carry relatively high yields.

Blue Owl Capital operates one of the largest BDC platforms in the United States, with $40 billion in evergreen BDC assets by fair value and a direct lending portfolio that has originated $176 billion in gross commitments since inception (https://www.blueowl.com/our-team). Understanding how that platform works requires unpacking a few structural distinctions.

How Blue Owl structures its BDC platform

Blue Owl’s direct lending business operates through multiple vehicles targeting different investor types. Blue Owl Capital Corporation (OBDC) trades on the NYSE and functions as a publicly accessible, exchange-listed BDC. Alongside it, the firm manages non-traded vehicles — including Blue Owl Capital Corporation II (OBDC II) and Blue Owl Technology Income Corp. (OTIC) — distributed through broker-dealer networks and unavailable on public exchanges.

At the end of 2025, OBDC held positions across 234 portfolio companies with a combined fair value of $16.5 billion, while OTIC’s book covered 190 companies totaling $6.2 billion in fair value (https://www.prnewswire.com/news-releases/certain-blue-owl-bdcs-to-sell-1-4-billion-of-assets-to-institutional-investors-302692003.html). Each vehicle has a different investor base, different liquidity profile, and different function within the broader product suite.

The difference between traded and non-traded BDCs

A traded BDC like OBDC provides daily liquidity through the stock market, but its share price can trade above or below the fund’s net asset value depending on market sentiment. Non-traded BDCs do not fluctuate with daily market prices, which can reduce volatility for investors but also limits their ability to exit positions on short notice. Liquidity in non-traded vehicles is typically provided through periodic tender offers or quarterly return-of-capital distributions.

Blue Owl Capital’s platform spans both structures. OBDC was among the first non-traded BDCs offered on a perpetual basis — meaning it continuously accepts new capital rather than closing to new investors after an initial raise. That structure allows the firm to build diversified portfolios over time and redeploy capital as loans mature.

How investors access the funds

Retail investors typically access Blue Owl’s non-traded BDCs through registered investment advisers or broker-dealers. OBDC, as a listed security, is reachable through any brokerage account. Institutional investors may access separately managed accounts or co-investment vehicles alongside the flagship funds.

Blue Owl’s direct lending team includes 130 investment professionals working through one of the widest origination funnels in the private credit market. Average deal size runs approximately $1.5 billion, which gives the firm significant negotiating leverage and the ability to serve as the sole or lead lender on transactions that smaller platforms would need to syndicate.

Keep reading: Blue Owl Capital Q4 Earnings Call Highlights