Blue Owl Funds Cut Dividends Following NAV Decreases

BLUE OWL CAPITAL CORP and Blue Owl Technology Finance Corp cut their first-quarter dividends on Wednesday as rising borrowing costs pressured net asset values. The move follows a year of investor jitters regarding private credit valuations and sector-specific disruptions in software. Investors are now reassessing the yield stability of private credit vehicles as base rates and tighter spreads squeeze earnings margins.

### Borrowing Costs Erode Net Asset Value Blue Owl Capital Corp reduced its dividend to 31 cents per share from 36 cents. Its net asset value (NAV) per share fell 2.7% to $14.41 during the first quarter. Blue Owl Technology Finance Corp lowered its payout to 35 cents per share from 40 cents and declared an additional five-cent special dividend in both quarters.