OCIC faces elevated redemption requests amid market volatility
Blue Owl Credit Income Corp (OCIC) received redemption requests totaling 21.9% of outstanding shares during the first quarter of 2026, the company disclosed in a shareholder letter. The business development company will fulfill its maximum quarterly repurchase limit of 5% on a pro rata basis, representing approximately 23% of total shares tendered.
The $988 million tender offer, combined with $872 million in gross capital inflows, resulted in net outflows of $116 million, or less than 1% of the company's net asset value as of December 31, 2025. Approximately 90% of OCIC's 90,000 shareholders elected not to tender their shares, while 1% of shareholders represented the majority of redemption requests.
As of February 28, 2026, OCIC maintained $11.3 billion in liquidity across cash, undrawn debt facilities and liquid Level 2 assets. The company reported net leverage of 0.80x debt-to-equity, below its target range of 0.90x to 1.25x. OCIC estimates quarterly repayments of $2.0 billion in normal course operations.
The company's Class I shares achieved a 9.2% annualized return since inception through March 2026, marking its five-year track record. Non-accruals represented 0.3% of portfolio fair value, with an average annual net loss rate of 0.1% since inception.
OCIC's portfolio totaled $36 billion in fair value as of December 31, 2025, diversified across 370 companies and 31 industries. The portfolio consisted of 93% senior secured loans with a 40% loan-to-value ratio and 91% backed by private equity sponsors. Portfolio companies reported year-over-year revenue and EBITDA growth of approximately 9% and 10%, respectively.
Moody's upgraded OCIC's investment-grade rating from Baa3 to Baa2 in January 2026, citing the company's underwriting capabilities and diversified investor base.