Owl Rock Technology Income Corporation, a publicly registered non-traded business development company, broke escrow with approximately $534 million in net equity proceeds.
The BDC is currently offering up to $5 billion in Class S, Class D and Class I shares of common stock in its public offering, which was declared effective by the Securities and Exchange Commission in mid-February 2022.
The BDC, which plans to originate and make investments in technology-related companies based primarily in the United States, had approximately $2 billion in committed capital at launch, including leverage, the company said. It will be managed by Owl Rock, a division of Blue Owl Capital Inc. (NYSE: OWL), a global alternative asset manager with $94.5 billion in assets under management as of December 31, 2021.
Owl Rock Technology Income Corp. “intends to capitalize” on Owl Rock’s direct lending platform which has closed more than 340 deals and manages $39.2 billion in assets. Since inception, the platform has sourced investment opportunities with $51.2 billion in gross originations, including more than $19 billion in technology-related investments as of December 31, 2021.
“The launch of [Owl Rock Technology Income Corp.] provides investors with a high-quality way to access investments in leading private technology companies that were previously only available to large institutions,” said Doug Ostrover, Blue Owl CEO and co-founder, and Marc Lipschultz, co-president and co-founder, in a joint statement.
“This access to the technology sector is especially important as we enter periods of increased market volatility. As the alternative asset management industry continues to broaden its reach beyond institutions, we look forward to leveraging our historical strength in the private wealth channels to remain a leader in providing institutional quality solutions to meet the growing market demand for access to private investments,” they added.
Owl Rock Technology Income Corp. was required to deposit all subscription proceeds in escrow with UMB Bank until it received subscriptions totaling at least $50 million.
On May 2, 2022, it sold approximately 48.4 million unregistered shares of its Class I common stock to feeder vehicles for approximately $484 million. In total, the BDC has sold 53.4 million shares, consisting entirely of Class I shares, for net proceeds of approximately $534 million.