Blue Owl Technology Finance Corp. raised $150 million through a private placement of senior unsecured notes yielding 7.6% and maturing in September 2032, the fund announced Friday. This marks the third financing since June for the software-focused private credit fund, known as OTF, bringing total debt capital raised since the end of Q2 to $800 million. The notes carry the highest coupon since OTF's 8.5% placement in September 2023. In August, OTF issued $400 million of 6.5% notes due 2029 and raised $250 million via a special-purpose-vehicle facility.

"This added flexibility positions us to grow the portfolio and capitalize on an increasingly attractive environment for technology investing," CEO Craig Packer said. Investors have grown cautious on private credit amid concerns over underwriting standards and AI disruption to software companies. OTF shares have recouped some losses since early last month after executives said borrowers showed minimal AI disruption, though shares remain down about 21% this year.

In Q2, non-accruals rose to 0.6% of the portfolio at cost from 0.3% previously. OTF extended its $2.7 billion revolving credit facility with all bank partners renewing commitments, ending the period with over $2 billion in cash and available capacity.