Vol. 6 — Forensic Audit — Updated Q4 2025

Blue Owl Credit Income Corp (OCIC)

A forensic audit of the $35.9B non-traded BDC managed by Blue Owl Credit Advisers — updated through Q4 2025 using SEC EDGAR 10-Q (Sep 30, 2025) and 10-K (Dec 31, 2025). Fourteen red flags identified. Rating 3 (stressed) loans grew +324% from Q1 2024 to Q4 2025 ($425M → $1.80B); Rating 4 (Materially Below) emerged from $0 to $103M in 2025; distribution coverage fell below 1.0x for the first time (FY 2025 NII $0.80/share vs. distributions $0.877/share = 0.91×); and the valuation gap between stated NAV ($9.32) and OBDC market-implied value (~$7.13) persists at ~$2.19/share (23.5%).

Vol. 6 — Forensic Audit Dashboard

OCIC — Key Metrics & Forensic Findings (Updated Q4 2025)

$35.9B Total Portfolio at Fair Value (Q4 2025)

$9.32 Stated NAV/Share (Q4 2025) — vs. ~$7.13 market-implied

+324% Rating 3 Loans from Q1 2024 to Q4 2025 ($425M → $1.80B)

0.91× FY 2025 Distribution Coverage — Below 1.0× for First Time

Metric	Q4 2024	Q4 2025
Total Investments at Fair Value	$26.4B	$35.9B (+36%)
Total Net Assets (Equity)	$14.5B	$19.8B
Total Debt Outstanding	$12.7B	~$15.0B
Net Debt-to-Equity Ratio	0.87×	0.76× (stated)
WA Portfolio Yield (FV)	9.9%	8.9% (−100bps more)
New Commitment Yield	9.1%	8.4% (FY 2025 avg)
Annual NII per Share (Class I)	$1.02	$0.80 (−21.6%)
Portfolio Companies	339	370

Stress Signal	Q4 2024	Q4 2025
Rating 3 Loans (Below Expectations)	$1.15B — 4.4% of FV	$1.80B — 5.0% of FV (+57% YoY)
Rating 4 Loans (Materially Below)	$0 — did not exist	$103M — NEW category emerged in 2025
Rating 5 Loans (Anticipated Loss)	$31.5M	$24M (slight improvement)
Distribution Coverage Ratio	1.00× (zero buffer)	0.91× — below 1.0× for first time
Annual NII vs. Distributions	$1.02 vs. $0.972	$0.80 vs. $0.877 — distributions exceed income
Interest Expense (Annual)	$956M est.	$973M (+22% vs. FY 2024)
Healthcare + Software Concentration	35.3%	~36.5% (healthcare providers grew to 13.9%)

Valuation Metric	Q4 2024	Q4 2025
OCIC Stated NAV/Share (Class I)	$9.57	$9.32 (−$0.25 in 2025)
OBDC Market-Implied Value	~$7.22 (24.5% discount)	~$7.13 (23.5% discount)
Implied Overstatement per Share	~$2.35 (24.5%)	~$2.19 (23.5%)
OBDC Price / NAV (March 2026)	—	$11.18 / $14.62 = 0.765×
Portfolio Overlap (OCIC / OBDC)	—	8 of OCIC top 10 borrowers in OBDC portfolio
Level 3 Assets (Est.)	~100%	~100% — all marks are internal estimates
Up to 100% of Distributions	Adviser-reimbursed	Per prospectus — not guaranteed income

Sources: OCIC Q4 2024 Earnings Presentation · SEC EDGAR 10-Q (Sep 30, 2025) & 10-K (Dec 31, 2025) · CIK 0001812554 · OBDC NYSE pricing (March 24, 2026) · PCI independent analysis

Vol. 6 — Forensic Audit: Blue Owl Credit Income Corp

The Buried Deterioration

Audit Thesis

OCIC's headline NAV has been managed to near-flatness — $9.53 to $9.57 across all of 2024, then $9.32 by Q4 2025. But the internal portfolio rating data tells a different story. Rating 3 (Below Expectations) loans have grown +324% from Q1 2024 to Q4 2025 ($425M → $1.80B). Rating 4 (Materially Below) — a category that did not exist in Q4 2024 — emerged at $103M by year-end 2025. FY 2025 NII per share fell to $0.80 versus distributions of $0.877 — distribution coverage fell below 1.0× for the first time. And the publicly traded vehicle run by the same manager — OBDC — continues to trade at a ~23.5% discount to its own stated NAV. Applied to OCIC, that implies a market-clearing value of approximately $7.13 per share against the stated $9.32.

Internal Rating Migration — Updated Through Q4 2025 (+324% Total Stressed Growth)

OCIC internal rating migration: Rating 3 grew from $425M (Q1 2024) to $1.80B (Q4 2025) — +324%; Rating 4 emerged at $103M in 2025

Stated NAV vs. OBDC Market-Implied Value — Gap Persists Through Q4 2025

OCIC stated NAV fell from $9.57 (Q4 2024) to $9.32 (Q4 2025); OBDC-implied value ~$7.13 — 23.5% valuation gap persists

Distribution Coverage — Fell Below 1.0× in FY 2025

OCIC FY 2025 NII $0.80/share vs distributions $0.877/share = 0.91x coverage — below 1.0× for first time; Q4 2025 estimated ~0.90×

Debt Growth — $7.8B to $15.0B in Two Years; Interest Expense +22% in 2025

OCIC total debt grew from $7.8B (Q4 2023) to ~$15.0B (Q4 2025) — +92% in 2 years; interest expense $973M in FY 2025

Yield Compression — 250bps Lost Since Peak; New Deals Still Below Book Yield

OCIC WA portfolio yield compressed from 11.4% (Q4 2023) to 8.9% (Q4 2025); new commitments at 8.4% — still below existing book

Investment Gains/(Losses) — 2025 Reversal via Realized Gains; Q4 Unrealized Negative Again

OCIC 2024 had four consecutive quarters of net losses; 2025 showed recovery via realized gains (+$211M) but Q4 2025 unrealized turned negative

Sector Concentration — Healthcare Growing to 13.9%; Combined ~36.5%

OCIC healthcare providers grew from 12.0% to 13.9% in 2025; software flat at 11.6%; combined concentrated exposure ~36.5%

Forensic Red Flag Scorecard — Updated: 14 Flags, 9 Scoring ≥7/10

OCIC forensic audit updated scorecard: 14 red flags, 9 of 14 scoring 7/10 or higher — 2 new flags added from 2025 filings (Rating 4 emergence, NAV erosion)

Forensic Audit Summary Dashboard — Updated Q4 2025