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Blue Owl Technology Income Corp. Securities Investigation

Blue Owl Technology Income Corp. Securities Investigation featured by top securities fraud attorneys, the White Law Group

Concerned about your investment in Blue Owl Technology Income Corp?

The White Law Group is investigating potential claims involving Blue Owl Technology Income Corp, formally known as Owl Rock Technology Income Corp.

Blue Owl Technology Income Corp, formally known as Owl Rock Technology Income Corp., is structured as a non-diversified, closed-end management investment company. The company, a non-traded BDC, makes debt and equity investments in technology-related companies based primarily in the United States.

Shift in Performance for BDCs

According to a report from BlueVault, there has been a shift in the performance of non-traded. A forecast from Fitch for BDCs in 2024 says things might get worse, with the quality of assets possibly going down.

This could happen because the companies BDCs invest in might have more debt due to higher interest rates, and it might be harder for them to get money because the economy is slowing down. However, so far, these BDCs have had very few losses, with only about 0.3% of their investments not making money as of September 30, 2023.

Investing in non-traded Business Development Companies (BDCs) is similar to investing in non-traded Real Estate Investment Trusts (REITs). BDCs gather money from investors to invest in various businesses, especially small and medium-sized ones, with the goal of helping them grow. Successful investments can bring good returns and tax benefits.

However, BDCs often provide high-risk loans to private equity-backed companies, which can be risky. If interest rates rise or there’s inflation, BDCs might face tough times.

Risks of Investing in BDCs- Blue Owl Technology Income Corp.

Investing in BDCs carries high risks that need careful consideration.

  1. Risk of losing money if the financial institutions where they keep their money fail.
  2. Uncertainty in the economy could harm their business.
  3. If corporate loans lose value, it could reduce their overall investment value and lead to losses.
  4. Economic downturns could hurt the businesses they invest in, affecting their profits.

Broker Due Diligence

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.

Potential Lawsuits to Recover Investment Losses

The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments such as Blue Owl Technology Income Corp. to investors. The high commission structure of these products leads to the possibility that unscrupulous financial advisors will push these products unsuitably to maximize their own commissions.

If you have suffered losses with Blue Owl Technology Income Corp. and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

Tags: Last modified: February 23, 2024