Mergers And AcquisitionsThe merger of Blue Owl’s private tech BDCs, OTF and OTF II, to form one tech-focused BDC is expected to optimize leverage, improve efficiencies, and reduce costs, leading to potentially higher returns.
Revenue GrowthA clearer path to a public listing for OTF/OTF II is expected to significantly increase management and part 1 fees for Blue Owl, translating to substantial revenue growth.
Stock ValuationShares still only trade at ~23.5x our 2025E EPS, and given the view that Blue Owl will deliver industry-leading growth for several years to come, the valuation multiple should move more in line.