Blue Owl Capital (OWL) - 2025 Q1 - Quarterly Results

Blue Owl Overview Company and Platform Overview As of March 31, 2025, Blue Owl is a leading alternative asset manager with $273 billion in assets under management, operating across three primary multi-strategy platforms - Blue Owl operates three main investment platforms: Credit, GP Strategic Capital, and Real Assets[22] Platform Assets Under Management (As of March 31, 2025) | Platform | Assets Under Management (AUM) (in billions) | | :--- | :--- | | Credit | $139.2 | | GP Strategic Capital | $67.0 | | Real Assets | $67.1 | - The company's strategic focus includes providing private capital solutions for long-term growth, with each platform having a distinct investment approach, such as direct lending in Credit, minority equity solutions in GP Strategic Capital, and net lease investments in Real Assets[24] First Quarter 2025 Highlights Q1 2025 Performance Summary In Q1 2025, Blue Owl reported Fee-Related Earnings of $345.4 million and Distributable Earnings of $262.5 million, with AUM reaching $273.3 billion, a 57% year-over-year increase Q1 2025 Financial & Capital Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Financial Results | | | | Fee-Related Earnings | $345.4 million | - | | Distributable Earnings | $262.5 million | - | | FRE per Adjusted Share | $0.22 | - | | DE per Adjusted Share | $0.17 | - | | Capital Metrics | | | | Assets Under Management (AUM) | $273.3 billion | +57% | | Fee-Paying AUM (FPAUM) | $174.6 billion | +66% | | Permanent Capital | $196.1 billion | +42% | | New Capital Commitments Raised | $10.7 billion | - | - The company has $23.4 billion in AUM not yet paying fees, which is expected to generate $289 million in annual management fees once deployed[30] - Corporate developments include the closure of the IPI Acquisition on January 3, 2025, which added approximately $14.2 billion in AUM, and a 25% increase in the annual dividend for 2025 to $0.90 per Class A Share[30] Financial Performance GAAP Financial Results For Q1 2025, Blue Owl's GAAP revenues increased 33% year-over-year to $683.5 million, while GAAP Net Income attributable to Blue Owl Capital Inc. declined by 70% to $7.4 million GAAP Results (Quarter Ended) | (dollars in thousands) | 1Q'25 | 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | Management Fees, Net | $604,186 | $447,898 | 35% | | Total GAAP Revenues | $683,486 | $513,340 | 33% | | Total GAAP Expenses | $606,192 | $357,734 | 69% | | GAAP Net Income Attributable to Blue Owl | $7,430 | $25,091 | (70%) | | Basic Earnings per Class A Share | $0.01 | $0.05 | - | GAAP Results (Last Twelve Months) | (dollars in thousands) | LTM 1Q'25 | LTM 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | Total GAAP Revenues | $2,465,573 | $1,853,962 | 33% | | GAAP Net Income Attributable to Blue Owl | $91,923 | $71,117 | 29% | - For the last twelve months ending Q1 2025, GAAP management fees increased 33% to $2.15 billion, and GAAP Consolidated Net Income was $345.1 million[37] Non-GAAP Financial Results Blue Owl achieved its 16th consecutive quarter of sequential growth in both FRE management fees and Fee-Related Earnings (FRE), with Q1 2025 FRE rising 19% year-over-year to $345.4 million - The company has recorded its 16th consecutive quarter of sequential growth for both FRE management fees and Fee-Related Earnings (FRE)[39] Non-GAAP Results (Quarter Ended) | (dollars in thousands) | 1Q'25 | 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | FRE Revenues | $620,192 | $486,548 | 27% | | Fee-Related Earnings (FRE) | $345,391 | $289,698 | 19% | | Distributable Earnings (DE) | $262,516 | $240,099 | 9% | | FRE per Adjusted Share | $0.22 | $0.20 | - | | DE per Adjusted Share | $0.17 | $0.17 | - | Non-GAAP Results (Last Twelve Months) | (dollars in millions) | LTM 1Q'25 | LTM 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | FRE Revenues | $2,304.2 | $1,769.6 | 30% | | Fee-Related Earnings (FRE) | $1,309.1 | $1,061.5 | 23% | | Distributable Earnings (DE) | $1,151.7 | $958.9 | 20% | Key Business Metrics Assets Under Management (AUM) As of March 31, 2025, Blue Owl's Assets Under Management (AUM) grew 57% year-over-year to $273.3 billion, driven by strategic acquisitions and strong capital raising AUM, FPAUM, and Permanent Capital Growth (YoY) | (dollars in billions) | 1Q'25 | 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | Assets Under Management (AUM) | $273.3 | $174.3 | 57% | | Fee-Paying AUM (FPAUM) | $174.6 | $105.4 | 66% | | Permanent Capital | $196.1 | $138.1 | 42% | - Growth was primarily driven by the Kuvare, IPI, Prima, and Atalaya acquisitions, as well as capital raised and deployment, particularly in the Credit platform[52] - AUM Not Yet Paying Fees totaled $23.4 billion, which is expected to generate $289 million in annual FRE management fees once deployed[52] - Permanent capital constituted 89% of management fees over the last twelve months[52] Fundraising Blue Owl demonstrated robust fundraising capabilities in Q1 2025, raising $10.7 billion in new capital commitments, with significant contributions from private wealth and institutional channels - Raised $10.7 billion in new capital commitments in Q1 2025 and $48.6 billion over the last twelve months[57] Total Equity Fundraise by Platform (Q1 2025) | Platform | Equity Raised (in billions) | | :--- | :--- | | Credit | $4.0 | | Real Assets | $2.2 | | GP Strategic Capital | $0.6 | | Total | $6.7 | - Private Wealth channels contributed $3.7 billion in equity fundraising during the quarter, while Institutional channels contributed $3.0 billion[57] Credit Platform The Credit platform's AUM reached $139.2 billion, a 53% year-over-year increase, driven by acquisitions and strong capital raising in direct lending Credit Platform AUM & FPAUM (YoY) | (dollars in billions) | 1Q'25 | 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | AUM | $139.2 | $91.3 | 53% | | FPAUM | $92.9 | $58.8 | 58% | - Direct Lending Originations were $12.8 billion for the quarter and $55.8 billion for the last twelve months, with net deployment of $4.5 billion and $18.2 billion, respectively[62] Strategy Gross Returns (Q1 2025) | Strategy | Q1'25 Gross Return | LTM Gross Return | | :--- | :--- | :--- | | Direct Lending | 3.1% | 13.3% | | Alternative Credit | 6.1% | 15.2% | GP Strategic Capital Platform The GP Strategic Capital platform's AUM grew 20% year-over-year to $67.0 billion, primarily fueled by capital raised for its sixth flagship minority equity stakes product and appreciation GP Strategic Capital AUM & FPAUM (YoY) | (dollars in billions) | 1Q'25 | 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | AUM | $67.0 | $55.8 | 20% | | FPAUM | $37.8 | $31.8 | 19% | - AUM Not Yet Paying Fees totaled $1.6 billion, reflecting expected annual management fees of $14 million once deployed[66] Flagship Fund Gross IRR Since Inception (as of 3/31/25) | Fund | Gross IRR | | :--- | :--- | | Blue Owl GP Stakes III | 29.0% | | Blue Owl GP Stakes IV | 57.2% | | Blue Owl GP Stakes V | 31.2% | Real Assets Platform The Real Assets platform experienced explosive growth, with AUM increasing 146% year-over-year to $67.1 billion, driven by strategic acquisitions and capital raising Real Assets AUM & FPAUM (YoY) | (dollars in billions) | 1Q'25 | 1Q'24 | % Change | | :--- | :--- | :--- | :--- | | AUM | $67.1 | $27.2 | 146% | | FPAUM | $43.9 | $14.9 | 195% | - The significant increase in AUM and FPAUM was primarily driven by the IPI, Prima, and Kuvare Acquisitions[71] - The Net Lease strategy delivered gross returns of 1.2% for Q1 2025 and 3.1% over the last twelve months[71] Supplemental Information & Appendix Supplemental Liquidity and AUM Details As of March 31, 2025, Blue Owl reported a strong liquidity position with $730 million in available liquidity and total debt of $3.24 billion, holding investment-grade ratings Liquidity and Debt Profile (as of 3/31/25) | Metric | Value | | :--- | :--- | | Available Liquidity | $730 million | | Total Debt | $3.24 billion | | Average Debt Maturity | ~10 years | | Cost of Debt (after-tax) | 3.8% | - The company holds investment-grade credit ratings: Fitch (BBB+), Moody's (Baa2), and S&P (BBB)[77] AUM Rollforward Summary (Twelve Months Ended 3/31/25) | (dollars in millions) | Total | | :--- | :--- | | Beginning Balance AUM | $174,320 | | Acquisitions | $57,183 | | New capital raised | $29,447 | | Change in debt | $16,098 | | Distributions | ($13,279) | | Change in value / other | $9,500 | | Ending Balance AUM | $273,269 | GAAP & Non-GAAP Reconciliations This section provides detailed reconciliations of GAAP financial measures to non-GAAP measures like Fee-Related Earnings (FRE) and Distributable Earnings (DE) - Detailed tables reconcile GAAP Net Income to Fee-Related Earnings (FRE) and Distributable Earnings (DE)[100] - Key adjustments include removing equity-based compensation, amortization of intangible assets, transaction expenses, and changes in liability values from GAAP earnings to arrive at non-GAAP metrics[100] - A historical reconciliation of GAAP Management Fees to FRE Management Fees is provided, showing quarterly figures from 2Q'21 to 1Q'25[107][108] Defined Terms The appendix provides definitions for key financial and operational terms used in the report, including AUM, FPAUM, Permanent Capital, FRE, and DE - Defines Assets Under Management (AUM) as the sum of NAV, debt, uncalled capital, and other managed assets[109] - Defines Fee-Related Earnings (FRE) as a non-GAAP measure of core operating performance, excluding items like equity-based compensation, amortization, and net investment gains/losses[96] - Defines Distributable Earnings (DE) as FRE adjusted for performance revenues, interest income/expense, and taxes, representing earnings available for distribution[97]