Financial Performance - As of September 30, 2025, Blue Owl Capital Inc. reported a net income of $6.31 million for the third quarter and $31.17 million for the nine months ended September 30, 2025, compared to $29.81 million and $88.84 million for the same periods in 2024, respectively [24]. - Total revenues for the three months ended September 30, 2025, increased to $727.99 million, up $127.11 million from $600.88 million in the same period of 2024 [66]. - Total revenues for the nine months ended September 30, 2025, increased to $2,114,582,000, up $450,516,000 or 27% from $1,664,066,000 in 2024 [77]. - Consolidated net income attributable to Blue Owl Capital Inc. decreased to $6.31 million, down $23.50 million from $29.81 million in the same quarter of 2024 [66]. - Consolidated net income for the three months ended September 30, 2025, was $47,373 thousand, compared to $99,324 thousand in the same period of 2024, reflecting a decrease of 52.3% [187]. - Net income attributable to Blue Owl Capital Inc. for the nine months ended September 30, 2025, was $31,166,000, down $57,675,000 from $88,841,000 in 2024 [77]. Fee-Related Earnings - Fee-related earnings for the third quarter of 2025 were $376.18 million, up from $326.86 million in the third quarter of 2024, representing a growth of approximately 15.1% [24]. - Fee-Related Earnings for the three months ended September 30, 2025, increased by $49,313,000 to $376,175,000, attributed to higher FRE revenues [93]. - Fee-Related Earnings for the nine months ended September 30, 2025, increased by $166.9 million to $1,079.9 million, up from $913.0 million in 2024 [100]. Assets Under Management (AUM) - Total assets under management (AUM) reached $295.6 billion as of September 30, 2025, with $183.8 billion classified as fee-paying AUM (FPAUM) [25][27]. - AUM not yet paying fees totaled $28.4 billion, which could provide approximately $361 million of annualized management fees once deployed [27][40]. - The increase in AUM for the nine months ended September 30, 2025, was driven by $15.4 billion of new capital raised, primarily in direct lending products [46]. - The IPI Acquisition contributed $14.2 billion to the increase in AUM, along with $10.9 billion raised across various products, including the Blue Owl Real Estate Net Lease Trust [47]. Capital Raising and Deployment - The company raised $14.4 billion in new capital commitments during the third quarter of 2025, contributing to a record total of $57.0 billion raised over the last twelve months [31]. - Blue Owl's direct lending strategy saw gross deployment of $46.8 billion and net funded deployment of $12.1 billion over the last twelve months, with an increase in new origination activity in the third quarter [32]. - The company raised $4.0 billion in new capital primarily in the GP minority stakes strategy during the nine months ended September 30, 2025 [50]. Expenses and Liabilities - Management fees rose to $645.66 million, an increase of $122.35 million compared to $523.31 million in the prior year [66]. - Compensation and benefits expenses increased by $70.27 million, totaling $341.37 million, compared to $271.11 million in the previous year [66]. - Interest expense rose to $42.35 million, an increase of $8.25 million compared to $34.10 million in the prior year [66]. - Total liabilities rose to $6,290,750 thousand as of September 30, 2025, compared to $5,186,434 thousand at December 31, 2024, marking an increase of 21.3% [180]. Shareholder Information - The target annual dividend for fiscal year 2025 is set at $0.90 per Class A Share, with a quarterly dividend of $0.225 declared for Q3 2025 [127]. - Cash dividends declared on Class A Shares increased to $0.225 per share for the three months ended September 30, 2025, compared to $0.180 per share in the same period of 2024, marking a rise of 25% [191]. - The number of Class A Shares outstanding as of September 30, 2025, was 664.80 million, compared to 568.25 million a year earlier, indicating an increase of 16.9% [191]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $873.2 million for the nine months ended September 30, 2025, up from $675.5 million in 2024, a change of $197.6 million [134]. - Cash flows from investing activities improved by $308.2 million, with outflows of $283.7 million in 2025 compared to $591.9 million in 2024 [134]. - The company anticipates that its current liquidity position will be sufficient to meet working capital needs for at least the next 12 months [111]. Acquisitions and Mergers - The company completed a merger on January 13, 2025, with OBDC as the surviving company, which may impact future performance metrics [55]. - The company completed several acquisitions, including the IPI Acquisition on January 3, 2025, enhancing its investment management capabilities [208]. Market Conditions and Risks - Adverse market conditions, including inflation and interest rate increases, may negatively impact liquidity and cash flows from management fees [133]. - An increase or decrease in interest rates by 100 basis points is not expected to have a material impact on the company's interest expense [156].

Group 1: Market Overview - Amazon has announced a significant $38 billion computing deal with OpenAI, which will enhance OpenAI's access to computing power using Nvidia GPUs [5][1] - The Federal Reserve is currently evaluating its rate path, with a 69% chance of a rate cut in December being priced in by the markets, despite some Fed officials expressing doubts about further cuts this year [6][4] - The Dow is down approximately 213 points, while the S&P 500 shows a slight gain, indicating a mixed market performance [115][3] Group 2: Economic Indicators - A report highlights slowing income growth for young workers, with real wage gains for those aged 25 to 29 being around 2%, which is significantly impacted by higher inflation [100][102] - The job market is experiencing a low hiring and low firing environment, which is particularly affecting young workers who rely on job switching for career advancement [105][106] - Concerns are raised about the structural shifts in employment due to AI, particularly in the tech sector, which may not align with traditional business cycle dynamics [26][32] Group 3: Federal Reserve Insights - Chicago Fed President Austin Goulby expressed unease about front-loading rate cuts, citing inflation concerns and the need for careful observation of economic indicators [8][12] - Goulby noted that inflation has been above target for over four years, with recent core inflation running at an annualized rate of 3.6% [14][29] - The Fed is balancing its dual mandate of managing inflation while supporting employment, which is currently in tension due to the labor market dynamics [106][113] Group 4: Corporate Developments - Microsoft has signed a data center deal with Iron, a Neocloud provider, continuing the trend of significant investments in AI infrastructure [6][5] - Cisco has received an upgrade from UBS, driven by a multi-year growth cycle fueled by AI infrastructure demand [74] - Core Mining is acquiring New Gold for approximately $7 billion in an all-stock deal, reflecting ongoing consolidation in the mining sector [79]

Key insights: Affirm partnered with Worldpay to boost its distribution; and with New York Life to sell its BNPL lending volume. What's at stake: The BNPL fintech is battling rivals such as Klarna and PayPal for merchant and consumer support. Forward look: Affirm reports earnings Thursday. As it battles buy now/pay later rivals like Klarna and PayPal, Affirm is adding merchant and financial scale to bolster its installment lending.   Affirm has signed a distribution deal with Worldpay, and expanded its relat ...

BlackRock’s HPS Investment Partners has written off roughly $150 million after discovering allegedly falsified collateral behind loans to telecom entrepreneur Bankim Brahmbhatt.The financing, arranged with BNP Paribas, was backed by what turned out to be fabricated accounts receivable and forged customer emails, lawsuits show.Brahmbhatt’s companies - Broadband Telecom, Bridgevoice, and Carriox Capital - have filed for bankruptcy; lenders say total exposure exceeds $500 million.BNP Paribas took a €190 millio ...

Core Insights - Blue Owl Capital Inc. is a significant player in the asset management sector, focusing on capital solutions for institutional investors [1][4] - The company operates in a competitive environment alongside major firms like Blackstone and Apollo Global Management [1] - A recent price target set by Evercore ISI suggests a potential upside for OWL's stock [1][5] Financial Performance - Blue Owl Capital held its third-quarter 2025 earnings call, which was led by key executives and attracted attention from major financial institutions [2][5] - The current stock price of OWL is $15.60, reflecting a slight decrease of 1.67% from the previous day [3] - Over the past year, OWL's stock has experienced significant volatility, with a high of $26.73 and a low of $14.55 [3][5] Market Position - The market capitalization of Blue Owl Capital is approximately $24.16 billion, indicating its substantial presence in the financial industry [4] - The trading volume for OWL stands at 7.88 million shares, demonstrating active investor interest [4]

Core Insights - Meta Platforms is set to raise up to $30 billion in its largest bond offering to date, driven by the need to fund significant investments in artificial intelligence infrastructure [1] - The company experienced a decline in share price by over 11% as costs surged by 32%, outpacing a 26% increase in revenue [2] - Meta's capital expenditure outlook for this year has been raised to between $70 billion and $72 billion, up from a previous forecast of $66 billion to $72 billion [5] Investment in AI - Meta has entered into a $27 billion financing deal with Blue Owl Capital for its largest data center project, "Hyperion," located in Richland Parish, Louisiana [3] - Major tech firms, including Meta, are projected to collectively spend $400 billion on AI infrastructure in 2023, according to Morgan Stanley [3] - The company is heavily investing in attracting top AI talent, with CEO Mark Zuckerberg leading a hiring initiative for the newly reorganized AI unit, Superintelligence Labs [4] Bond Offering Details - The bond sale will consist of six parts with maturities ranging from five to 40 years, with principal amounts between $4 billion and $6.5 billion [2] - Co-managers for the bond sale include Morgan Stanley, Allen & Company, and Blaylock Van [2] - The bond sale has influenced the selling of U.S. Treasuries as investors seek to hedge amid broader market uncertainties [5]

Core Insights - Meta is planning to raise up to $30 billion through its largest bond offering to fund significant investments in AI infrastructure, with capital expenditures expected to be "notably larger" next year than in 2025 [1][8] - The company's shares fell over 11% as a result of a 32% increase in costs that outpaced a 26% revenue increase [1][8] - Major tech companies, including Meta, are projected to spend $400 billion on AI infrastructure this year, according to Morgan Stanley [5] Capital Expenditure and Bond Sale - Meta has increased the lower end of its capital expenditure outlook for this year to between $70 billion and $72 billion, up from a prior forecast of $66 billion to $72 billion [7][8] - The bond sale will consist of six parts with maturities ranging from five to 40 years, with principal amounts ranging from $4 billion to $6.5 billion [2][8] - Co-managers for the bond sale include Morgan Stanley, Allen & Company, and Blaylock Van [2] AI Investments and Talent Acquisition - Meta recently secured a $27 billion financing deal with Blue Owl Capital, its largest private capital agreement, to support its Hyperion data center project in Louisiana [5][8] - The company is heavily investing in attracting and retaining top AI talent, with CEO Mark Zuckerberg leading an aggressive hiring spree for the newly reorganized AI unit, Superintelligence Labs [6][8] - Employee compensation costs, particularly for AI talent, are expected to be the second-largest contributor to the increase in costs next year, as stated by Meta's CFO Susan Li [6]

Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.24 per share and distributable earnings (DE) of $0.22 per share for Q3 2025, with a dividend declared at $0.225 per share [4][21] - Management fees increased by 29% over the last 12 months, with 86% coming from permanent capital vehicles [22] - FRE was up 19%, and DE was up 15% year-over-year [22] Business Line Data and Key Metrics Changes - In direct lending, gross origination in Q3 was approximately $11 billion, with net deployment increasing to $3 billion, bringing last 12-month gross and net originations to $47 billion and $12 billion, respectively [10][25] - The alternative credit strategy demonstrated scale benefits, deploying approximately $5 billion over the last 12 months, primarily focused on small business equipment leasing, aviation, and consumer transactions [10][11] - The company raised over $14 billion in new capital commitments during the quarter, achieving a record $57 billion in capital raised over the last 12 months [9][22] Market Data and Key Metrics Changes - The company noted a shift in investor focus towards credit and digital infrastructure, which are gaining market share from legacy categories [6] - The health of the private credit markets remains strong, with an average annual realized loss of just 13 basis points and no signs of meaningful stress in direct lending [7][8] Company Strategy and Development Direction - The company is strategically positioned to benefit from ongoing investments in institutional and private wealth distribution channels and new product expansion [5][6] - A substantial strategic partnership was announced with Qatar Investment Authority to scale and expand the digital infrastructure business [17] - The company aims for continued growth in management fees and earnings, with expectations of 20% growth in FRE per share by 2026 and 2027 [36][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their credit portfolios and the ongoing health of underlying borrowers [8][32] - The company anticipates continued growth in Part 1 fees in 2026, despite recent rate cuts [26] - Management emphasized the importance of performance and duration of capital in achieving positive investment outcomes over time [19][20] Other Important Information - The company has an installed base of over 160,000 individual investors and is adding new products in digital infrastructure and alternative credit [18] - The company completed its largest strip sale to date, selling about 18% of the assets in Fund 4 for proceeds of over $2.5 billion, delivering a 3.2x gross return [18] Q&A Session Summary Question: Summary of growth investments and future metrics - Management expects margin expansion and meaningful acceleration in FRE and DE per share growth as they move into 2026 and 2027 [34][35] Question: Impact of credit volatility on retail flows - Management reported strong flows and continued momentum in wealth-focused products, indicating resilience in the channel [46][47] Question: Understanding stock price perceptions - Management is focused on execution and communication to address market misunderstandings and believes the current valuations do not reflect the underlying business strength [52][55] Question: Digital infrastructure business and lease structures - Management clarified that leases are designed for long durations with built-in flexibility, ensuring strong returns even in case of early termination [61][62] Question: Absorption of recent fundraising and fund performance - Management noted that while there was short-term noise in fund performance, the underlying projects are strong, and they expect to absorb new capital quickly [68][70]

Financial Data and Key Metrics Changes - The company reported Fee-Related Earnings (FRE) of $0.24 per share and Distributable Earnings (DE) of $0.22 per share for Q3 2025, with a declared dividend of $0.225 per share [4][22] - Management fees increased by 29% over the last 12 months, with 86% coming from permanent capital vehicles [21][22] - FRE was up 19% and DE was up 15% year-over-year [22] Business Line Data and Key Metrics Changes - In direct lending, gross origination was approximately $11 billion in Q3, with net deployment increasing to $3 billion [10][25] - The alternative credit strategy demonstrated scale benefits, deploying approximately $5 billion over the last 12 months [10][25] - The company raised $5.6 billion in credit during Q3, with $3 billion from direct lending [22][24] Market Data and Key Metrics Changes - The company raised over $1 billion in the Digital Infrastructure Fund, reflecting strong investor interest [16][17] - The installed base of individual investors in Blue Owl products exceeded 160,000, with significant growth in private wealth fundraising [17][18] Company Strategy and Development Direction - The company is strategically positioned to benefit from the shift towards credit and digital infrastructure, capitalizing on ongoing investments across institutional and private wealth distribution channels [5][6] - Blue Owl aims to continue expanding its digital infrastructure business, highlighted by a substantial partnership with QIA [17][19] - The focus remains on delivering exceptional returns per unit of risk while maintaining a vigilant approach to market changes [20][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the credit portfolios, with an average annual realized loss of just 13 basis points [7][8] - The company anticipates continued growth in FRE and DE per share, aiming for 20% growth in management fees and revenues by 2026 [36][37] - Management emphasized the importance of execution and communication to address market perceptions and enhance stock performance [55][56] Other Important Information - The company has a growing base of AUM Not Yet Paying Fees, amounting to $28 billion, which is expected to drive over $360 million in management fees upon deployment [9] - The company has closed on two investments in GP stakes during Q3, with a significant focus on delivering liquidity to investors [18][19] Q&A Session Summary Question: Summary of growth investments and future metrics - Management expects margin expansion and meaningful acceleration in FRE and DE per share growth from 2026 onwards, aligning with their long-term goals [34][35] Question: Impact of credit volatility on retail flows - Management reported strong flows and continued momentum in wealth-focused products, indicating resilience despite market volatility [46][47] Question: Understanding stock performance relative to fundamentals - Management acknowledged the disconnect between strong fundamentals and stock performance, emphasizing execution and communication as key strategies to address this [52][55] Question: Digital infrastructure business and lease structures - Management clarified that leases are designed for long durations with built-in flexibility, ensuring strong returns regardless of early termination scenarios [61][62] Question: Fund performance and absorption of recent fundraising - Management noted that recent performance fluctuations are short-term noise, with strong underlying performance expected to continue [68][69]

Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.24 per share and distributable earnings (DE) of $0.22 per share for Q3 2025, with a declared dividend of $0.225 per share [3][22] - Management fees increased by 29% over the last 12 months, with 86% coming from permanent capital vehicles [22] - FRE was up 19% and DE was up 15% year-over-year [22] Business Line Data and Key Metrics Changes - The company raised over $14 billion in new capital commitments during the quarter, reaching a record $57 billion in the last 12 months, equivalent to 24% of assets under management a year ago [9] - In direct lending, gross origination was approximately $11 billion, with net deployment increasing to $3 billion [10] - In alternative credit, the company deployed approximately $5 billion over the last 12 months, focusing on small business equipment leasing, aviation, and consumer transactions [10] Market Data and Key Metrics Changes - The company noted a shift in investor focus towards credit and digital infrastructure, gaining market share from legacy categories [5] - The average annual realized loss in credit portfolios remains low at just 13 basis points, indicating strong health in the corporate and asset-backed credit markets [6][8] Company Strategy and Development Direction - The company is strategically positioned to benefit from the ongoing structural evolution in private markets, focusing on credit and digital infrastructure [5] - A substantial strategic partnership was announced with Qatar Investment Authority to scale and expand the digital infrastructure business [18] - The company aims to continue delivering exceptional returns while maintaining a focus on innovation and being ahead of market trends [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of credit portfolios and the resilience of consumer credit, despite recent headlines about credit issues [6][8] - The company anticipates continued growth in FRE and DE per share, with expectations of 20% growth in management fees and revenues by 2026 [37][38] - Management emphasized the importance of execution and communication to address market perceptions and drive stock prices higher [52] Other Important Information - The company has an installed base of over 160,000 individual investors and is adding new products in digital infrastructure and alternative credit [19] - The company completed its largest strip sale to date, generating over $2.5 billion in proceeds [19] Q&A Session Summary Question: What is the expected growth in FRE and margins for 2026 and 2027? - Management expects meaningful acceleration in FRE per share and margin expansion as they move into 2026 and 2027, aligning with their long-term growth goals [37][38] Question: How have retail flows been impacted by recent credit volatility? - Management reported strong flows and continued momentum in retail products, indicating resilience despite market volatility [46][47] Question: What is being done to change market perceptions about the company's stock? - The company is focused on executing well and communicating effectively with shareholders to address any misunderstandings about its business [52] Question: Can you elaborate on the digital infrastructure business and its pipeline? - Management highlighted a vast pipeline of opportunities in digital infrastructure, with significant capital commitments and strong demand for their services [84][86]