Owl Rock Capital Corporation (ORCC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Owl Rock Capital Corporation (ORCC) trades at $13.48 with AI Score 49/100 (Grade C). Owl Rock Capital Corporation (ORCC) is a specialty finance company focused on providing direct lending solutions to middle-market companies. Market cap: $5.25B, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for ORCC: ORCC does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates ORCC against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
ORCC: the 1 perspectives are evenly split.
How is this calculated? →Owl Rock Capital Corporation (ORCC) Financial Services Profile
Owl Rock Capital Corporation (ORCC) is a leading business development company (BDC) specializing in direct lending to U.S. middle-market companies. ORCC offers customized financing solutions, focusing on first-lien loans, and aims to deliver attractive risk-adjusted returns through income generation and capital appreciation, distinguishing itself via scale and origination capabilities.
What Is the Investment Thesis for ORCC?
Owl Rock Capital Corporation presents a compelling investment case based on its established position in direct lending to middle-market companies. The company's focus on senior secured loans provides downside protection and stable income generation. ORCC's scale and origination capabilities allow it to participate in larger, more attractive deals. A key value driver is ORCC's ability to maintain a diversified portfolio across industries, mitigating concentration risk. The company's experienced management team and disciplined underwriting standards contribute to its consistent performance. Ongoing: Favorable credit market conditions and continued demand for private credit could drive further growth in ORCC's investment portfolio. Investors should monitor ORCC's net asset value (NAV) and dividend coverage ratio to assess its financial health and sustainability.
Based on FMP financials and quantitative analysis
ORCC Key Highlights
- As of December 31, 2023, ORCC had approximately $12.8 billion of investments at fair value.
- ORCC's investment portfolio consists primarily of senior secured loans, offering downside protection.
- The company targets middle-market companies with annual revenues between $50 million and $2.5 billion and EBITDA between $10 million and $250 million.
- ORCC is externally managed by Owl Rock Capital Advisors LLC, providing investment advisory and administrative services.
- ORCC aims to generate current income and, to a lesser extent, capital appreciation through its investments.
Who Are ORCC's Competitors?
ORCC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ARCC Ares Capital Corporation | $18.54 | -0.13% | $13.31B | 78 |
| TCPC BlackRock TCP Capital Corp. | $3.23 | -0.77% | $270.59M | — |
| FSK FS KKR Capital Corp. | $10.47 | +1.36% | $2.93B | — |
| FEDDX Fidelity Emerging Markets Discovery Fd | $23.32 | +1.83% | $1.53B | 47 |
| DAUG FT Vest U.S. Equity Deep Buffer ETF - August | $47.01 | +0.09% | $363.75M | 47 |
| KSTR KraneShares SSE STAR Market 50 Index ETF | $28.60 | +0.25% | $66.71M | 47 |
| PEQSX Putnam Large Cap Value Fund | $44.15 | +0.46% | $51.63B | 47 |
| CWB State Street SPDR Bloomberg Convertible Securities ETF | $104.07 | -1.20% | $4.57B | 47 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are ORCC's Key Strengths?
- Large investment portfolio and economies of scale
- Strong origination platform and deal sourcing capabilities
- Experienced management team with deep credit expertise
- Diversified portfolio across various industries
What Are ORCC's Weaknesses?
- Reliance on external management by Owl Rock Capital Advisors LLC
- Exposure to credit risk and potential for loan defaults
- Sensitivity to interest rate fluctuations
- Potential conflicts of interest due to affiliated transactions
What Could Drive ORCC Stock Higher?
- Potential interest rate cuts by the Federal Reserve could improve borrowing conditions for middle-market companies, driving demand for ORCC's financing solutions.
- Continued growth in the private credit market and increasing demand for alternative financing options.
- Strategic partnerships and joint ventures with other financial institutions could expand ORCC's deal flow and investment opportunities.
- Deployment of capital into higher-yielding investments, such as unitranche loans, could enhance ORCC's income generation.
What Are the Key Risks for ORCC?
- Financial-distress signal — its Altman Z-Score of 0.54 sits in the distress zone (elevated bankruptcy risk).
- Economic downturn and increased loan defaults could negatively impact ORCC's investment portfolio and financial performance.
- Increased competition from other BDCs and private credit funds could put pressure on ORCC's investment yields.
- Interest rate fluctuations could impact ORCC's net interest margin and investment returns.
- Regulatory changes and increased compliance costs could negatively impact ORCC's profitability.
What Are the Growth Opportunities for ORCC?
- Expansion of Direct Lending Platform: ORCC can further expand its direct lending platform by increasing its origination capabilities and geographic reach. The middle-market lending space is vast, with an estimated $1.4 trillion in outstanding debt. By targeting specific industries and regions with unmet financing needs, ORCC can grow its investment portfolio and generate higher returns. Timeline: Ongoing, with continuous efforts to build relationships with private equity sponsors and intermediaries.
- Strategic Partnerships and Joint Ventures: Forming strategic partnerships and joint ventures with other financial institutions can provide ORCC with access to new markets and investment opportunities. Collaborating with private equity firms, hedge funds, and other BDCs can expand ORCC's deal flow and diversify its investment portfolio. Timeline: Ongoing, with potential for new partnerships to be established within the next 1-2 years.
- Increased Focus on Unitranche Loans: Unitranche loans, which combine senior and subordinated debt into a single facility, offer higher yields and greater flexibility for borrowers. By increasing its focus on unitranche loans, ORCC can enhance its income generation and improve its risk-adjusted returns. The unitranche market is estimated to be worth $200 billion annually. Timeline: Ongoing, with gradual increase in unitranche loan allocations.
- Leveraging Technology and Data Analytics: Investing in technology and data analytics can improve ORCC's underwriting process and risk management capabilities. By leveraging data analytics, ORCC can identify attractive investment opportunities, assess credit risk more accurately, and monitor portfolio performance more effectively. Timeline: Upcoming, with planned investments in technology infrastructure over the next 1-3 years.
- Capitalizing on Regulatory Changes: Regulatory changes, such as adjustments to BDC regulations, can create new opportunities for ORCC. By adapting to these changes and leveraging its expertise, ORCC can enhance its competitive position and generate higher returns. For example, potential changes to leverage limits or investment restrictions could allow ORCC to deploy capital more efficiently. Timeline: Ongoing, with continuous monitoring of regulatory developments.
What Opportunities Does ORCC Have?
- Expansion of direct lending platform and geographic reach
- Strategic partnerships and joint ventures with other financial institutions
- Increased focus on unitranche loans and higher-yielding investments
- Leveraging technology and data analytics to improve underwriting and risk management
What Threats Does ORCC Face?
- Increased competition from other BDCs and private credit funds
- Economic downturn and potential for increased loan defaults
- Regulatory changes and potential for increased compliance costs
- Rising interest rates and potential for decreased investment returns
What Are ORCC's Competitive Advantages?
- Scale: ORCC has a large investment portfolio, providing it with economies of scale and access to larger deals.
- Origination Platform: The company has a strong origination platform, enabling it to source and execute attractive investment opportunities.
- Experienced Management Team: ORCC's management team has extensive experience in credit and private equity investing.
- Diversified Portfolio: The company's portfolio is diversified across various industries, mitigating concentration risk.
What Does ORCC Do?
Owl Rock Capital Corporation, established in 2015, is a business development company (BDC) that provides direct lending solutions to middle-market companies primarily in the United States. The company was co-founded by Doug Ostrover, Marc Lipschultz, and Craig Packer, veterans in the credit and private equity industries, who identified a gap in the market for reliable financing partners for mid-sized businesses. ORCC's investment objective is to generate current income and, to a lesser extent, capital appreciation, by targeting investments in senior secured loans, unsecured loans, and equity securities. ORCC focuses on companies with annual revenues between $50 million and $2.5 billion and EBITDA between $10 million and $250 million. The company's investment strategy centers on originating, structuring, and underwriting customized financing solutions, often acting as a lead lender or co-lead lender in its transactions. This approach allows ORCC to exert greater influence over deal terms and monitoring. ORCC's portfolio is diversified across various industries, including software, healthcare, business services, and manufacturing. Owl Rock Capital Corporation is externally managed by Owl Rock Capital Advisors LLC, which provides investment advisory and administrative services. The company's scale and origination platform provide a competitive advantage, enabling it to source and execute larger transactions than many of its peers. ORCC operates primarily in the United States and has a significant presence in major financial centers. As of December 31, 2023, ORCC had approximately $12.8 billion of investments at fair value in 153 portfolio companies.
What Products and Services Does ORCC Offer?
- Provides direct lending solutions to middle-market companies.
- Invests primarily in senior secured loans, unsecured loans, and equity securities.
- Targets companies with annual revenues between $50 million and $2.5 billion.
- Originates, structures, and underwrites customized financing solutions.
- Acts as a lead lender or co-lead lender in its transactions.
- Manages a diversified portfolio across various industries.
- Aims to generate current income and capital appreciation for its investors.
How Does ORCC Make Money?
- ORCC raises capital through public and private offerings of debt and equity.
- The company invests this capital in loans and securities of middle-market companies.
- ORCC generates income from interest payments on its loans and dividends from its equity investments.
- The company's investment advisor, Owl Rock Capital Advisors LLC, earns management fees and incentive fees based on ORCC's performance.
What Industry Does ORCC Operate In?
The specialty finance industry, particularly direct lending to middle-market companies, has experienced significant growth in recent years. This growth is driven by increased demand for alternative financing solutions from companies underserved by traditional banks. The market is competitive, with numerous BDCs and private credit funds vying for deals. Owl Rock Capital Corporation distinguishes itself through its scale, origination platform, and experienced management team. The industry is influenced by macroeconomic factors, such as interest rates, credit spreads, and regulatory changes. As of 2023, private credit AUM reached $1.6 trillion, reflecting the increasing allocation to this asset class.
Who Are ORCC's Key Customers?
- Middle-market companies seeking financing for growth, acquisitions, or recapitalizations.
- Private equity firms looking for debt financing for their portfolio companies.
- Companies in various industries, including software, healthcare, business services, and manufacturing.
F-Score 4/9Financial Health
Owl Rock Capital Corporation's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.54 places it in the distress zone, a signal of elevated financial risk.
ROE 5%Key Financial Metrics
Return on equity for Owl Rock Capital Corporation stands at 4.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.2%, showing how much profit it generates from its asset base. ORCC trades at a trailing price-to-earnings ratio of 14.92, below the Financial Services sector average of ~18x. Its free cash flow yield is 20.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.7%, the inverse of the P/E and a quick read on earnings relative to price.
Owl Rock Capital Corporation (ORCC) Valuation Context
Valued at $5.25B, ORCC is classified as a mid-cap stock. Relative to its peer group, ORCC's quantitative score of 49/100 is roughly in line with the peer average of 57/100.
ORCC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Insider buying has increased recently, signaling confidence from leadership in the company's future prospects.
- Community sentiment has shifted positively, with discussions highlighting strong portfolio management and consistent income generation.
- Recent market perception reflects a growing interest in alternative investment strategies, which benefits firms like Owl Rock.
- Analysts note that the company has been effectively navigating current economic uncertainties, reinforcing its stability.
Bear Case
- Concerns about rising interest rates have led to skepticism regarding the sustainability of Owl Rock's income streams.
- Community discussions reveal worries about potential credit quality deterioration in the company's investment portfolio.
- The overall market sentiment remains cautious, with investors wary of potential economic downturns affecting capital markets.
- Recent bearish views highlight that competition in the alternative lending space is intensifying, potentially impacting market share.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
ORCC Latest News
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benzinga · Sep 26, 2022
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· Jun 11, 2021
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Stocks That Hit 52-Week Lows On Thursday
· Mar 19, 2020
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· Mar 18, 2020
ORCC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ORCC.
Price Targets
Wall Street price target analysis for ORCC.
ORCC MoonshotScore
What does this score mean?
The MoonshotScore rates ORCC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Specialty FinanceWhat Investors Ask About Owl Rock Capital Corporation (ORCC) — Financial Services
What does ORCC do?
Owl Rock Capital Corporation (ORCC) is a specialty finance company and business development company (BDC) that provides direct lending solutions to middle-market companies in the United States. ORCC's primary objective is to generate current income and, to a lesser extent, capital appreciation through its investments in senior secured loans, unsecured loans, and equity securities. The company focuses on originating, structuring, and underwriting customized financing solutions for companies with annual revenues between $50 million and $2.5 billion, often acting as a lead or co-lead lender.
What do analysts say about ORCC stock?
Analyst consensus for Owl Rock Capital Corporation (ORCC) generally reflects a positive outlook, citing the company's strong origination platform, diversified portfolio, and experienced management team. Key valuation metrics, such as price-to-net asset value (P/NAV) and dividend yield, are closely monitored to assess the stock's attractiveness. Growth considerations include ORCC's ability to deploy capital into higher-yielding investments and manage credit risk effectively. Investors should conduct their own due diligence and consider their individual investment objectives before making any decisions.
What are the main risks for ORCC?
The main risks for Owl Rock Capital Corporation (ORCC) include credit risk, interest rate risk, and regulatory risk. Credit risk refers to the potential for loan defaults and losses on investments. Interest rate risk arises from fluctuations in interest rates, which can impact ORCC's net interest margin and investment returns. Regulatory risk stems from potential changes in BDC regulations, which could increase compliance costs and restrict investment activities. Additionally, increased competition from other BDCs and private credit funds could put pressure on ORCC's investment yields.
How does ORCC compare to competitors in its industry?
Owl Rock Capital Corporation (ORCC) differentiates itself from competitors through its scale, origination platform, and focus on senior secured loans. While competitors like Ares Capital Corporation (ARCC) may have a broader investment mandate, ORCC's specialization in direct lending to middle-market companies allows it to build deep expertise and relationships in this segment. ORCC's management team also has extensive experience in credit and private equity investing, contributing to its competitive advantage. Investors may want to evaluate these factors when comparing ORCC to its peers.
What are the key financial metrics investors watch for ORCC?
Key financial metrics that investors watch for Owl Rock Capital Corporation (ORCC) include net asset value (NAV) per share, dividend yield, net investment income (NII) per share, and the debt-to-equity ratio. NAV per share reflects the company's underlying asset value, while dividend yield indicates the income generated from the stock. NII per share measures ORCC's profitability from its investment activities, and the debt-to-equity ratio assesses its financial leverage. Monitoring these metrics helps investors evaluate ORCC's financial health and performance.
What are the key factors to evaluate for ORCC?
Owl Rock Capital Corporation (ORCC) holds an AI score of 49/100 (low). Not financial advice.
How frequently does ORCC data refresh on this page?
ORCC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven ORCC's recent stock price performance?
Owl Rock Capital Corporation (ORCC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Large investment portfolio and economies of scale. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and management commentary.
- Future performance is subject to various risks and uncertainties.