A transfer case includes a primary shaft, a secondary shaft radially offset from the primary shaft, and a torque transfer mechanism. The primary shaft includes a central channel and an inclined fluid channel. The torque transfer mechanism is configured to selectively transfer torque from the primary shaft to the secondary shaft, and includes a primary sprocket coupled to the primary shaft for transferring torque to the secondary shaft. The inclined fluid channel is associated with the primary sprocket, and includes an outlet that axially overlaps the primary sprocket.