Industry Overview - The private markets industry is increasingly targeting wealthy retail investors, a significant shift from a decade ago when institutional investors dominated this space [1][4] - The recent executive order from the Trump administration is expected to provide private equity firms access to millions of Americans' retirement accounts, further expanding the market [4] Company Insights - Doug Ostrover, co-CEO of Blue Owl, highlighted the challenges of gaining traction with retail investors, noting that efforts can be costly and slow [2][3] - Blue Owl's strategy included significant investments in technology and education for financial advisors, as well as hiring experienced wealth management professionals [5] - Ostrover's firm, originally founded as Owl Rock in 2016, has become a key player in the wealth channel, despite initial skepticism about the viability of targeting retail investors [6][10] Market Dynamics - The industry is witnessing a competitive landscape where major firms are investing millions to reach potential retail clients, indicating a strong commitment to this market segment [5] - The sales strategy for private equity funds now heavily relies on access to financial advisors, which is crucial for reaching wealthy investors [4]

Group 1 - The company has a direct lending business that is currently under scrutiny regarding potential market bubbles and future direction [1] - The portfolio consists of $120 billion in capital, with investments in 450 to 500 names, indicating a diversified approach [1] - Concerns about credit quality and deployment activity are being addressed, with a focus on the macroeconomic backdrop for the latter half of the year and into 2026 [1]

Blue Owl Capital (NYSE:OWL) FY Conference September 08, 2025 02:00 PM ET Company ParticipantsBen Budish - DirectorDoug Ostrover - Co-CEO & DirectorBen BudishAfternoon, everyone. Thanks for being here. I'm Ben Budish. I cover The U. S.Brokers, asset managers and exchanges here at Barclays. With us for this first session to kick off the afternoon, we've got Doug Ostrover, Co CEO and Chairman of BlueOwl. Doug, thanks so much for being here.Doug OstroverIt's great to be here. I apologize everyone for being a co ...

Company Overview - Blue Owl Capital Inc. is a leading asset manager with a focus on redefining alternatives [2] - As of June 30, 2025, the company has over $284 billion in assets under management [3] - Blue Owl operates across three multi-strategy platforms: Credit, Real Assets, and GP Strategic Capital [3] Investment Strategy - The company provides private capital solutions aimed at driving long-term growth for businesses [3] - Blue Owl offers differentiated alternative investment opportunities to institutional investors, individual investors, and insurance companies [3] - The investment approach aims to deliver strong performance, risk-adjusted returns, and capital preservation [3] Leadership and Events - Doug Ostrover, co-CEO of Blue Owl, is scheduled to present at Barclays 23rd Annual Global Financial Services Conference on September 8, 2025 [1] - A live webcast of the presentation will be available on the company's website, with a replay accessible shortly after the event [1]

Core Insights - Blue Owl Capital has extended its partnership with Chirisa Technology Parks to support developments totaling $20 billion, which includes $4 billion for CoreWeave projects in Lancaster, Pennsylvania [1][3][4] - The Lancaster facility will be part of CoreWeave's network of AI data centers, aimed at building infrastructure for AI applications across critical economic corridors in the U.S. [2][6] - The partnership emphasizes sustainable development, with a focus on creating high-performance digital campuses that contribute to local economic growth and job creation [4][9] Company Developments - CoreWeave is rapidly expanding its infrastructure footprint, with nearly 1.6 GW under development in the U.S., positioning itself as a leading cloud infrastructure provider for AI workloads [12] - The Lancaster campus will utilize advanced technologies for energy efficiency, including proprietary infrastructure that is nearly twice as energy-efficient as traditional data centers [7][8] - The project will also involve a $200 million investment in local power grid improvements to enhance the electric grid's safety and efficiency in the Lancaster region [9] Strategic Partnerships - The collaboration between Blue Owl, Chirisa Technology Parks, and Machine Investment Group is designed to leverage each partner's strengths in funding, development, and operational expertise [4][13] - Machine Investment Group's focus on repurposing underutilized commercial properties aligns with the strategic goals of the partnership, enhancing the potential for successful project execution [4][13]

Group 1 - Mr. Mavroudis is a professional portfolio manager specializing in institutional and private portfolios, focusing on risk management through in-depth financial market analysis [1] - He invests in various financial instruments globally, including stocks, bonds, foreign exchange, and commodities, while restructuring investment portfolios based on prevailing conditions and client needs [1] - Mr. Mavroudis has successfully navigated major crises, including the COVID-19 pandemic and the PSI, demonstrating his expertise in risk management [1] Group 2 - He is the CEO of FAST FINANCE Investment Services, a registered Greek company by the Hellenic Capital Market Commission [1] - Mr. Mavroudis holds multiple degrees, including an MSc in Financial and Banking Management, an LLM in Law, and a BSc in Economics, graduating as valedictorian [1] - He is certified in various financial disciplines, including portfolio management, financial instruments analysis, derivatives, and securities market-making [1] Group 3 - By writing on Seeking Alpha, the company aims to engage with a vibrant community of investors and market enthusiasts, contributing meaningful perspectives while fostering mutual growth and knowledge sharing [1]

Group 1: Formation of Blue Crest Aviation Partners - Crestone Air Partners announced the formation of Blue Crest Aviation Partners, a joint venture with funds managed by Blue Owl Capital, aimed at acquiring mid-life commercial jet aircraft leased to airlines globally through an income-oriented strategy [1][4] - Blue Crest represents the next stage of Crestone's capital formation, following the successful deployment of Contrail JV II and affiliated sidecar vehicles, with hundreds of millions of dollars invested in aviation assets since 2020 [3][4] Group 2: Crestone Air Partners Overview - Crestone is a wholly owned subsidiary of Air T, Inc., benefiting from an integrated operating platform that includes MRO, parts sales, storage, disassembly, and leasing services to support mature-phase aircraft management [2][5] - The company targets transactions in the secondary market, focusing on the last decade of the asset lifecycle, and offers flexible lease terms tailored to customer requirements [5] Group 3: Blue Owl Capital Overview - Blue Owl Capital is a leading asset manager with over $284 billion in assets under management as of June 30, 2025, investing across three multi-strategy platforms: Credit, Real Assets, and GP Strategic Capital [6] - The firm provides private capital solutions to drive long-term growth and offers differentiated alternative investment opportunities aimed at delivering strong performance and capital preservation [6]

Group 1 - Blue Owl Capital Inc. (OWL) experienced a significant increase in stock price leading up to and shortly after Trump's inauguration on January 20th, reaching an all-time high on January 23rd [1] - Following the peak on January 23rd, the stock has faced a decline [1] Group 2 - The article emphasizes the importance of core values such as Excellence, Integrity, Transparency, and Respect for long-term success in investment [1]

[PART I - FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) The required financial statements are located in the F-pages of this report - The financial statements required by this item are located in the F-pages of the report[20](index=20&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=8&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, covering key metrics, business environment, and liquidity [Overview](index=8&type=section&id=Overview) GAAP Net Income declined to $17.4 million in Q2 2025, while non-GAAP Fee-Related and Distributable Earnings showed significant growth Key Financial Metrics (Q2 & H1 2025 vs. 2024) | (dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income Attributable to Blue Owl Capital Inc.** | $17,426 | $33,945 | $24,856 | $59,036 | | **Fee-Related Earnings (Non-GAAP)** | $358,343 | $296,475 | $703,734 | $586,173 | | **Distributable Earnings (Non-GAAP)** | $323,014 | $272,965 | $585,530 | $513,064 | [Assets Under Management](index=8&type=section&id=Assets%20Under%20Management) Total Assets Under Management reached $284.1 billion, supported by a stable Permanent Capital base and a significant shadow AUM pipeline AUM and FPAUM by Platform (as of June 30, 2025) | Platform | AUM (billions) | FPAUM (billions) | | :--- | :--- | :--- | | **Credit** | $145.5 | $93.7 | | **Real Assets** | $71.5 | $45.4 | | **GP Strategic Capital** | $67.1 | $38.4 | | **Total** | **$284.1** | **$177.5** | - The company has **$28.6 billion in AUM** not yet paying fees, which is expected to generate an additional **$379 million in annualized management fees** once deployed or upon expiration of fee holidays[25](index=25&type=chunk)[38](index=38&type=chunk) - Permanent Capital constitutes a significant portion of the asset base, generating approximately **86% of GAAP management fees** over the last twelve months, enhancing earnings resiliency[28](index=28&type=chunk)[41](index=41&type=chunk) Changes in AUM (Six Months Ended June 30, 2025) | (dollars in millions) | Beginning Balance | Acquisitions | New Capital Raised | Change in Debt | Distributions | Change in Value / Other | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Credit** | $135,710 | — | $9,803 | $4,421 | ($5,918) | $1,452 | $145,468 | | **Real Assets** | $49,374 | $14,206 | $7,952 | $142 | ($1,392) | $1,204 | $71,486 | | **GP Strategic Capital** | $66,035 | — | $1,003 | — | ($900) | $993 | $67,131 | | **Total** | **$251,119** | **$14,206** | **$18,758** | **$4,563** | **($8,210)** | **$3,649** | **$284,085** | Changes in FPAUM (Six Months Ended June 30, 2025) | (dollars in millions) | Beginning Balance | Acquisitions | New Capital Raised / Deployed | Distributions | Change in Value / Other | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Credit** | $90,957 | — | $6,034 | ($4,753) | $1,446 | $93,684 | | **Real Assets** | $31,500 | $10,723 | $3,860 | ($1,333) | $616 | $45,366 | | **GP Strategic Capital** | $37,337 | — | $1,211 | ($235) | $119 | $38,432 | | **Total** | **$159,794** | **$10,723** | **$11,105** | **($6,321)** | **$2,181** | **$177,482** | [Business Environment](index=9&type=section&id=Business%20Environment) The company demonstrated earnings resiliency through its management-fee-centric model, achieving a record fundraising quarter despite market volatility - The company's business model, focused on management fees and Permanent Capital, demonstrated resiliency against market volatility and uncertainty in Q2 2025[27](index=27&type=chunk) - A record fundraising quarter brought in **$13.9 billion of new capital**, totaling **$54.6 billion over the last twelve months**[28](index=28&type=chunk) - Direct lending deployment was moderately active with **$9.7 billion in originations** during the quarter[30](index=30&type=chunk) - The Real Assets platform is financing the largest data center project in the U.S, highlighting robust deployment opportunities in the sector[31](index=31&type=chunk) [Product Performance](index=13&type=section&id=Product%20Performance) Performance metrics for select products across Credit, Real Assets, and GP Strategic Capital platforms show varied returns - Product performance information is not indicative of Blue Owl's corporate performance, and past performance does not guarantee future results[51](index=51&type=chunk) Select Credit Product Performance | (dollars in millions) | Year of Inception | Net MoIC | Net IRR | | :--- | :--- | :--- | :--- | | **Blue Owl Capital Corporation** | 2016 | 1.51x | 9.9% | | **Blue Owl Credit Income Corp.** | 2020 | 1.17x | 10.6% | | **Blue Owl Technology Finance Corp.** | 2018 | 1.18x | 9.0% | Select Real Assets Product Performance | (dollars in millions) | Year of Inception | Net MoIC | Net IRR | | :--- | :--- | :--- | :--- | | **Blue Owl Real Estate Fund V** | 2020 | 1.35x | 13.1% | | **Blue Owl Digital Infrastructure Fund II** | 2020 | 1.42x | 11.3% | Select GP Strategic Capital Product Performance | (dollars in millions) | Year of Inception | Net MoIC | Net IRR | | :--- | :--- | :--- | :--- | | **Blue Owl GP Stakes III** | 2015 | 2.94x | 22.5% | | **Blue Owl GP Stakes IV** | 2018 | 2.14x | 36.0% | | **Blue Owl GP Stakes V** | 2020 | 1.20x | 15.3% | [GAAP Results of Operations Analysis](index=16&type=section&id=GAAP%20Results%20of%20Operations%20Analysis) Q2 2025 revenues grew to $703.1 million, but a significant rise in expenses led to a decrease in net income GAAP Results of Operations (Three Months Ended June 30) | (dollars in thousands) | 2025 | 2024 | $ Change | | :--- | :--- | :--- | :--- | | **Total Revenues, Net** | $703,106 | $549,848 | $153,258 | | Management fees, net | $623,369 | $465,754 | $157,615 | | **Total Expenses** | $603,824 | $377,295 | $226,529 | | Compensation and benefits | $326,300 | $227,103 | $99,197 | | General, administrative and other | $188,052 | $93,458 | $94,594 | | **Income Before Income Taxes** | $84,494 | $156,251 | ($71,757) | | **Net Income Attributable to Blue Owl Capital Inc.** | $17,426 | $33,945 | ($16,519) | - The increase in management fees for Q2 2025 was primarily driven by growth in the Credit platform (+$79.7M), Real Assets (+$63.2M, largely from the IPI Acquisition), and GP Strategic Capital (+$14.7M)[72](index=72&type=chunk) - The rise in Q2 2025 expenses was mainly due to a **$56.9 million increase** related to the Services Agreement from the IPI acquisition, higher compensation from growth, and increased amortization from recurring and acquisition-related equity grants[77](index=77&type=chunk) [Non-GAAP Analysis](index=20&type=section&id=Non-GAAP%20Analysis) Non-GAAP Fee-Related Earnings (FRE) and Distributable Earnings (DE) grew by 21% and 18% respectively in Q2 2025 Fee-Related and Distributable Earnings Summary (Three Months Ended June 30) | (dollars in thousands) | 2025 | 2024 | $ Change | | :--- | :--- | :--- | :--- | | **FRE revenues** | $646,050 | $520,006 | $126,044 | | **FRE expenses** | $277,801 | $213,875 | $63,926 | | **Fee-Related Earnings (FRE)** | $358,343 | $296,475 | $61,868 | | **Distributable Earnings (DE)** | $323,014 | $272,965 | $50,049 | FRE Revenues by Platform (Three Months Ended June 30) | (dollars in thousands) | 2025 | 2024 | $ Change | | :--- | :--- | :--- | :--- | | **Credit Platform** | $391,077 | $330,201 | $60,876 | | **Real Assets Platform** | $91,720 | $42,278 | $49,442 | | **GP Strategic Capital Platform** | $163,253 | $147,527 | $15,726 | | **Total FRE Revenues** | **$646,050** | **$520,006** | **$126,044** | - The FRE Margin was **57% for Q2 2025**, compared to **59% for Q2 2024**[109](index=109&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with significant cash and revolver availability to cover its debt and dividend obligations - The company ended Q2 2025 with **$117.6 million of cash** and cash equivalents and approximately **$0.9 billion available** under its Revolving Credit Facility[111](index=111&type=chunk) - As of June 30, 2025, long-term debt consisted of approximately **$2.5 billion in various Senior Notes** and **$780.0 million outstanding** under the Revolving Credit Facility[113](index=113&type=chunk) - The company expects to pay approximately **$1.7 billion under the Tax Receivable Agreement (TRA)** over its lifetime, assuming sufficient taxable income is generated[115](index=115&type=chunk) - A quarterly dividend of **$0.225 per Class A Share** was declared for Q2 2025, consistent with the targeted annual dividend of **$0.90 per share** for fiscal year 2025[127](index=127&type=chunk) [Critical Accounting Estimates](index=31&type=section&id=Critical%20Accounting%20Estimates) Key accounting estimates involve the fair value of investments, liabilities like the TRA, and purchase price allocations for acquisitions - Key estimates include the fair value of investments in managed products, which is a primary input for calculating management fees for the Credit and some Real Assets products[142](index=142&type=chunk) - The valuation of the TRA liability, earnout liabilities, and a preferred equity investment are sensitive to assumptions like discount rates and expected future cash flows, and changes can materially impact GAAP results[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - Accounting for business combinations requires significant judgment in allocating the purchase price to assets acquired and liabilities assumed, particularly intangible assets and goodwill[150](index=150&type=chunk)[151](index=151&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include the impact of investment fair value on management fees, interest rate risk, and credit risk concentration - The primary market risk is the effect of changes in the fair value of investments in managed products on management fee revenue, especially within the Credit platform[156](index=156&type=chunk) - Interest rate risk affects borrowings under the variable-rate Revolving Credit Facility and the valuation of both fixed-rate and variable-rate investments held by the company's products[157](index=157&type=chunk)[158](index=158&type=chunk) - Credit risk is concentrated as the majority of cash balances are held with a single highly-rated financial institution, in amounts exceeding FDIC insured limits[159](index=159&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the quarter-end with no material changes - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[161](index=161&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[162](index=162&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any pending legal proceedings expected to have a material financial impact - The company is not currently a party to any pending legal proceedings that it expects to have a material impact on its financial statements[165](index=165&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the company's latest Annual Report have occurred - As of the report date, there have been no material changes to the risk factors previously disclosed in the company's Annual Report[166](index=166&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued 4.4 million Common Units for an acquisition and repurchased 114,228 shares for $1.7 million - In April and May 2025, the company issued a combined **4,417,921 Common Units and Class C Shares** as partial consideration for the IPI Acquisition in unregistered private placements[167](index=167&type=chunk)[168](index=168&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet be Purchased | | :--- | :--- | :--- | :--- | | April 1-30, 2025 | 114,228 | $14.81 | $148,309 (in thousands) | | May 1-31, 2025 | — | — | — | | June 1-30, 2025 | — | — | — | | **Total** | **114,228** | | | [Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None reported - The company reports no defaults upon senior securities[172](index=172&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) None reported - The company reports no mine safety disclosures[173](index=173&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter - No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter[174](index=174&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all documents filed as part of the Form 10-Q - Refers to the Exhibit Index on the following page for a list of filed documents[174](index=174&type=chunk) [Notes to Consolidated Financial Statements](index=49&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1. Organization](index=49&type=section&id=Note%201.%20Organization) Blue Owl operates as a single-segment global alternative asset manager with a detailed corporate and capital structure - Blue Owl operates as a single reportable segment providing asset management services, with Co-CEOs as the Chief Operating Decision Makers[200](index=200&type=chunk) - On April 1, 2025, the company completed an internal reorganization where Blue Owl Capital Carry LP became a wholly owned subsidiary of Blue Owl Capital Holdings LP[202](index=202&type=chunk) - The company completed the acquisition of digital infrastructure fund manager IPI Partners, LLC on January 3, 2025[209](index=209&type=chunk) [Note 3. Acquisitions, Goodwill and Intangible Assets, Net](index=55&type=section&id=Note%203.%20Acquisitions,%20Goodwill%20and%20Intangible%20Assets,%20Net) The IPI Acquisition added $923.8 million in goodwill, increasing total company goodwill to $5.62 billion IPI Acquisition Purchase Price Allocation | (dollars in thousands) | Amount | | :--- | :--- | | **Total Consideration** | **$1,305,691** | | Equity consideration | $922,174 | | Cash consideration | $243,434 | | Earnout liability | $140,083 | | **Net Identifiable Assets Acquired** | **$381,856** | | **Goodwill** | **$923,835** | - The IPI business contributed **$100.5 million in GAAP revenues** for the six months ended June 30, 2025[236](index=236&type=chunk) Goodwill Roll-Forward (Six Months Ended June 30, 2025) | (dollars in thousands) | Amount | | :--- | :--- | | **Beginning balance** | **$4,699,465** | | IPI Acquisition | $923,835 | | Atalaya Acquisition adjustment | $1,169 | | **Ending Balance** | **$5,624,469** | [Note 4. Investments and Fair Value Disclosures](index=57&type=section&id=Note%204.%20Investments%20and%20Fair%20Value%20Disclosures) The company holds $485.9 million in investments, with the majority of fair value assets and liabilities classified as Level III Assets and Liabilities at Fair Value (June 30, 2025) | (dollars in thousands) | Level I | Level II | Level III | Total | | :--- | :--- | :--- | :--- | :--- | | **Assets, at Fair Value** | **$—** | **$87,547** | **$279,502** | **$367,049** | | Preferred equity investment | $— | $— | $272,630 | $272,630 | | **Liabilities, at Fair Value** | **$—** | **$—** | **$271,200** | **$271,200** | | TRA liability | $— | $— | $99,502 | $99,502 | | Earnout liability | $— | $— | $171,698 | $171,698 | - The fair value of the preferred equity investment is determined using a discounted cash flow model with a discount rate of **14%**, and is classified as Level III[257](index=257&type=chunk)[266](index=266&type=chunk) [Note 7. Debt Obligations, Net](index=65&type=section&id=Note%207.%20Debt%20Obligations,%20Net) Total outstanding debt stands at $3.29 billion, comprising Senior Notes and borrowings on the Revolving Credit Facility Debt Obligations (as of June 30, 2025) | (dollars in thousands) | Outstanding Debt | Net Carrying Value | | :--- | :--- | :--- | | 2028 Notes | $59,800 | $58,968 | | 2031 Notes | $700,000 | $689,947 | | 2032 Notes | $400,000 | $393,816 | | 2034 Notes | $1,000,000 | $980,359 | | 2051 Notes | $350,000 | $338,529 | | Revolving Credit Facility | $780,000 | $780,000 | | **Total** | **$3,289,800** | **$3,241,619** | - Of the **$780.0 million borrowed** under the Revolving Credit Facility as of June 30, 2025, **$400.0 million was repaid** subsequent to quarter end[281](index=281&type=chunk) [Note 9. Revenues](index=67&type=section&id=Note%209.%20Revenues) The Credit platform is the largest revenue contributor, accounting for $832.5 million of the $1.39 billion total for H1 2025 Total GAAP Revenues by Platform (Six Months Ended June 30) | (dollars in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Credit Platform** | $832,544 | $674,317 | | **Real Assets Platform** | $240,183 | $96,960 | | **GP Strategic Capital Platform** | $313,865 | $291,911 | | **Total GAAP Revenues** | **$1,386,592** | **$1,063,188** | [Note 12. Earnings Per Share](index=71&type=section&id=Note%2012.%20Earnings%20Per%20Share) Diluted earnings per Class A share was $0.02 for Q2 2025 and for the six-month period ending June 30, 2025 Earnings Per Share (EPS) Reconciliation (Three Months Ended June 30, 2025) | (dollars in thousands, except per share) | Net Income | Weighted-Average Shares | EPS | | :--- | :--- | :--- | :--- | | **Basic** | $17,426 | 649,685,215 | **$0.03** | | Effect of dilutive securities | ($4,800) | 6,370,821 | | | **Diluted** | $12,626 | 656,056,036 | **$0.02** | Earnings Per Share (EPS) Reconciliation (Six Months Ended June 30, 2025) | (dollars in thousands, except per share) | Net Income | Weighted-Average Shares | EPS | | :--- | :--- | :--- | :--- | | **Basic** | $24,856 | 637,835,492 | **$0.04** | | Effect of dilutive securities | ($10,496) | 9,504,619 | | | **Diluted** | $14,360 | 647,340,111 | **$0.02** | [Note 14. Subsequent Events](index=75&type=section&id=Note%2014.%20Subsequent%20Events) Subsequent events include the declaration of a Q2 dividend and the enactment of new U.S. tax legislation - On July 31, 2025, the company declared a Q2 cash dividend of **$0.225 per Class A Share**[333](index=333&type=chunk) - New U.S. tax legislation was enacted on July 4, 2025, the impact of which is currently being evaluated and will be reflected in the third quarter[334](index=334&type=chunk)

Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.23 per share and distributable earnings (DE) of $0.21 per share for the second quarter [4] - FRE revenues grew by 29%, FRE increased by 23%, and DE rose by 20% year over year on a last twelve months basis [7] - The company raised $14 billion of new capital during the quarter, totaling a record $55 billion over the last twelve months, representing 28% of assets under management a year ago [6][7] Business Line Data and Key Metrics Changes - In alternative credit, the company closed a private offering of $850 million for a new interval fund, reflecting strong investor confidence [8] - The digital infrastructure strategy saw a final close of its third flagship fund at a $7 billion hard cap, with over half the capital already soft circled for investment [9] - The real estate credit strategy deployed over $3 billion year to date, with significant activity in the insurance channel [9] Market Data and Key Metrics Changes - Capital raised from EMEA and APAC investors increased to 23% from 14% two years ago, indicating ongoing globalization of the business [12] - The company raised $5.8 billion of equity in credit during the second quarter, marking a record quarter for the credit platform [24] - The direct lending portfolio gross returns were 3% in the second quarter and 13.5% over the last twelve months, with strong credit quality maintained [26] Company Strategy and Development Direction - The company is focused on expanding its product offerings to meet varying investor needs across the risk-return spectrum, leveraging its scale and incumbency [7] - A new strategic partnership with Voya aims to deliver private market strategies tailored for defined contribution retirement plans, broadening access to alternative investments [20] - The company plans to grow FRE management fees to over $5 billion and FRE to over $3 billion, indicating a strong long-term growth trajectory [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their investor base despite market disruptions, highlighting the secular demand for their strategies [12] - The company noted that the investments made over the past year are beginning to bear fruit, with a steady and predictable financial profile [33] - Management emphasized the importance of the current macro environment for direct lending, indicating optimism for future transaction volumes [84] Other Important Information - The company completed the listing of its technology-focused BDC, OTF, which is now the second largest publicly traded BDC by net assets [22] - The company has raised $3.5 billion of capital across strategies that did not exist two years ago, reflecting strong reception for new offerings [10] - The net lease pipeline continues to grow, with nearly $41 billion of transaction volume under letter of intent [28] Q&A Session Summary Question: Can you discuss the asset origination channel and the scaling opportunity in asset-backed finance? - Management highlighted the significant opportunity in asset-backed finance and the integration of their asset-backed business with direct lending, emphasizing their strong origination capabilities [36][40] Question: What are the thoughts on the build-out of a target date fund with Voya? - Management discussed the importance of democratizing access to alternative investments for 401(k) participants and the potential for innovation in this area [50][54] Question: What should be expected regarding the integration and scaling of recently acquired businesses? - Management indicated that integration benefits are already being realized, with strong fundraising numbers and a diversified business model [60][66] Question: Can you comment on the competitive environment in the triple net lease market? - Management stated that their leadership in the net lease market has accelerated, with a growing pipeline and strong trust built with partners [75] Question: How is the direct lending business performing, and what are the expectations for the third quarter? - Management noted strong credit quality and a positive macro environment for direct lending, with signs of increased activity in the market [84]