Blue Owl Capital (OWL) - 2025 Q2 - Quarterly Results

Report Overview Company Information & Report Details This report is the Q2 2025 financial report for Blue Owl Capital Inc, released on July 31, 2025 - Report release date: July 31, 2025[1][4] - Company Name: Blue Owl Capital Inc (NYSE: OWL)[3][5] Disclosures & Forward-Looking Statements Blue Owl Capital Inc, a leading asset manager with over $284 billion in AUM, includes forward-looking statements with inherent risks - Blue Owl Capital Inc is a leading asset management firm with over $284 billion in assets under management as of June 30, 2025[6][13] - The company invests across three multi-strategy platforms: Credit, Real Assets, and GP Strategic Capital[6][13] - The report contains forward-looking statements involving known and unknown risks and uncertainties regarding future performance, and the company has no obligation to update them[8][9][10] Non-GAAP Financial Measures & Important Notice The report utilizes non-GAAP financial measures as supplemental tools for evaluation and clarifies it is not an offer of securities - The report includes non-GAAP financial measures to evaluate ongoing operating results and trends, but they should not replace GAAP measures[14] - All current period amounts are preliminary and unaudited[12][13] - This report does not constitute an offer to sell or a solicitation to buy any securities, investment funds, or investment services[18] Key Highlights The company achieved record fundraising in Q2 2025, marked 17 consecutive quarters of growth, and announced a strategic partnership - Record capital raising in Q2 2025 across institutional, wealth, credit, and real assets channels[21] - Achieved 17 consecutive quarters of management fee and Fee-Related Earnings (FRE) growth[21][23] - Successfully closed an $850 million alternative credit fund private placement and raised $3.5 billion for its seventh flagship net lease fund and $7.0 billion for its third digital infrastructure fund[21] - Announced a strategic equity partnership with Voya Retirement[21] Blue Owl Company Overview Blue Owl Capital is a leading asset manager with over $284 billion in AUM, specializing in Credit, Real Assets, and GP Strategic Capital - Assets Under Management (AUM) of over $284 billion as of June 30, 2025[24] - The company operates through three investment platforms: Credit, Real Assets, and GP Strategic Capital[26] - The Credit platform has completed 735+ transactions, the Real Assets platform holds 5,750+ equity properties, and the GP Strategic Capital platform has completed 90+ equity and debt transactions since inception[27][29] Assets Under Management by Platform | Platform | Assets Under Management (AUM) | | :--- | :--- | | Credit | $145.5B | | Real Assets | $71.5B | | GP Strategic Capital | $67.1B | Investment Platforms The company's platforms include Credit, a preferred partner in direct lending; Real Assets, a leader in net lease; and GP Strategic Capital, an innovator in minority equity solutions - The Credit platform is a preferred financing partner in direct lending and alternative credit markets, with $165 billion in total direct loans originated since inception[29] - The Real Assets platform provides flexible and customized capital solutions and is a leader in the net lease sector, demonstrating strong performance across market cycles[29] - The GP Strategic Capital platform offers innovative minority equity and financing solutions for private capital managers, with over 90 equity and debt transactions completed since inception[29] Fundraising Performance Fundraising has grown significantly since the company's public listing, driven by differentiated products and a scaled distribution platform - Fundraising has grown significantly since going public, driven by differentiated products, an expanding product suite, and a scaled distribution platform[32][35] - The average equity fundraising from 2Q'23 to 2Q'25 is significantly higher than the period from 2Q'21 to 2Q'23[35] Quarterly Equity Fundraising Trend ($ in Billions) | Quarter | Equity Fundraising (Billions) | | :--- | :--- | | 2Q'21 | $1.2 | | 3Q'21 | $2.3 | | 4Q'21 | $3.9 | | 1Q'22 | $3.9 | | 2Q'22 | $7.2 | | 3Q'22 | $8.8 | | 4Q'22 | $4.9 | | 1Q'23 | $3.8 | | 2Q'23 | $2.9 | | 3Q'23 | $2.9 | | 4Q'23 | $6.2 | | 1Q'24 | $4.7 | | 2Q'24 | $5.4 | | 3Q'24 | $7.9 | | 4Q'24 | $9.5 | | 1Q'25 | $6.7 | | 2Q'25 | $12.1 | Financial Performance Second Quarter 2025 Highlights The company reported Q2 2025 GAAP Net Income of $17.4 million, Fee-Related Earnings (FRE) of $358.3 million, and a 25% dividend increase Key Financial Metrics for Q2 2025 | Metric | Amount | | :--- | :--- | | GAAP Net Income | $17.4 Million | | Basic EPS (GAAP) | $0.03 | | Fee-Related Earnings (FRE) | $358.3 Million | | Adjusted FRE per Share | $0.23 | | Distributable Earnings (DE) | $323.0 Million | | Adjusted DE per Share | $0.21 | | AUM | $284.1 Billion (48% YoY Growth) | | FPAUM | $177.5 Billion (46% YoY Growth) | | Permanent Capital | $204.6 Billion (41% YoY Growth) | | AUM Not Yet Paying Fees | $28.6 Billion (Est. $379 Million Annual Mgmt Fees) | | New Capital Commitments | $13.9 Billion ($12.1 Billion in New Equity) | | Quarterly FPAUM Raised & Deployed | $5.4 Billion | | 2025 Annual Dividend | $0.90 per Class A Share (25% YoY Growth) | | Quarterly Dividend | $0.225 per Class A Share | GAAP Financial Results GAAP total revenues grew 28% YoY to $703.1 million in Q2 2025, but GAAP net income declined 49% to $17.4 million due to higher expenses GAAP Revenues and Expenses (2Q'25 vs 2Q'24) | Metric (in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | GAAP Revenues | | | | | Management Fees, Net | 623,369 | 465,754 | 34% | | Administrative, Transaction and Other Fees | 78,758 | 83,906 | (6%) | | Performance Income | 979 | 188 | 421% | | Total GAAP Revenues | 703,106 | 549,848 | 28% | | GAAP Expenses | | | | | Compensation and Benefits | 326,300 | 227,103 | 44% | | Amortization of Intangible Assets | 89,472 | 56,734 | 58% | | General, Administrative and Other Expenses | 188,052 | 93,458 | 101% | | Total GAAP Expenses | 603,824 | 377,295 | 60% | GAAP Net Income and EPS (2Q'25 vs 2Q'24) | Metric | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | GAAP Net Income Attributable to Blue Owl Capital Inc | $17,426 | $33,945 | (49%) | | Basic EPS, Class A Share | $0.03 | $0.06 | | | Diluted EPS, Class A Share | $0.02 | $0.06 | | Last Twelve Months GAAP Key Metrics (as of 2Q'25) | Metric (in thousands) | LTM as of 2Q'25 | LTM as of 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | GAAP Management Fees, Net | $2,307,967 | $1,710,239 | 35% | | GAAP Consolidated Net Income | $277,745 | $394,770 | (30%) | | GAAP Net Income Attributable to Class A Shares | $75,404 | $92,203 | (18%) | GAAP Revenues and Expenses In Q2 2025, GAAP total revenues rose 28% YoY to $703.1 million, while total expenses increased by 60% to $603.8 million GAAP Revenue Details (2Q'25 vs 2Q'24) | Revenue Category (in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Credit | 368,016 | 288,310 | 28% | | Real Assets | 105,427 | 42,209 | 150% | | GP Strategic Capital | 149,926 | 135,235 | 11% | | Management Fees, Net | 623,369 | 465,754 | 34% | | Administrative, Transaction and Other Fees | 78,758 | 83,906 | (6%) | | Performance Income | 979 | 188 | 421% | | Total GAAP Revenues | 703,106 | 549,848 | 28% | GAAP Expense Details (2Q'25 vs 2Q'24) | Expense Category (in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Compensation and Benefits | 326,300 | 227,103 | 44% | | Amortization of Intangible Assets | 89,472 | 56,734 | 58% | | General, Administrative and Other Expenses | 188,052 | 93,458 | 101% | | Total GAAP Expenses | 603,824 | 377,295 | 60% | GAAP Net Income and EPS GAAP net income attributable to Blue Owl Capital Inc was $17.4 million in Q2 2025, a 49% decrease YoY, with basic EPS at $0.03 GAAP Net Income and EPS (2Q'25 vs 2Q'24) | Metric | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | GAAP Net Income Attributable to Blue Owl Capital Inc | $17,426 | $33,945 | (49%) | | Basic EPS, Class A Share | $0.03 | $0.06 | | | Diluted EPS, Class A Share | $0.02 | $0.06 | | Historical GAAP Trends For the LTM ending Q2 2025, GAAP management fees grew 35% to $2.31 billion, but consolidated net income declined Last Twelve Months GAAP Key Metrics (as of 2Q'25) | Metric (in millions) | LTM as of 2Q'25 | LTM as of 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | GAAP Management Fees | $2,308.0 | $1,710.2 | 35% | | GAAP Consolidated Net Income | $277.7 | $394.8 | (30%) | | GAAP Net Income Attributable to Class A Shares | $75.4 | $92.2 | (18%) | Non-GAAP Financial Results The company delivered strong non-GAAP results in Q2 2025 with 24% FRE revenue growth and 21% FRE growth, demonstrating robust profitability - The company has achieved 17 consecutive quarters of sequential growth in FRE management fees and FRE[46] Non-GAAP Key Metrics (2Q'25 vs 2Q'24) | Metric (in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | FRE Revenues | 646,050 | 520,006 | 24% | | Fee-Related Earnings (FRE) | 358,343 | 296,475 | 21% | | Distributable Earnings (DE) | 323,014 | 272,965 | 18% | | Adjusted FRE per Share | $0.23 | $0.21 | | | Adjusted DE per Share | $0.21 | $0.19 | | Last Twelve Months Non-GAAP Key Metrics (as of 2Q'25) | Metric (in thousands) | LTM as of 2Q'25 | LTM as of 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | FRE Revenues | $2,430,251 | $1,888,134 | 29% | | Fee-Related Earnings (FRE) | $1,370,927 | $1,113,394 | 23% | | Distributable Earnings (DE) | $1,201,714 | $1,004,872 | 20% | FRE Revenues and Expenses FRE revenues for Q2 2025 increased 24% YoY to $646.1 million, while FRE expenses grew 30% to $277.8 million FRE Revenue Details (2Q'25 vs 2Q'24) | Revenue Category (in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | FRE Management Fees, Net | 620,152 | 476,414 | 30% | | FRE Administrative, Transaction and Other Fees | 25,779 | 43,404 | (41%) | | FRE Performance Income | 119 | 188 | (37%) | | Total FRE Revenues | 646,050 | 520,006 | 24% | FRE Expense Details (2Q'25 vs 2Q'24) | Expense Category (in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | FRE Compensation and Benefits | 188,942 | 148,202 | 27% | | FRE General, Administrative and Other Expenses | 88,859 | 65,673 | 35% | | Total FRE Expenses | 277,801 | 213,875 | 30% | Fee-Related Earnings (FRE) and Distributable Earnings (DE) Fee-Related Earnings (FRE) reached $358.3 million in Q2 2025, up 21% YoY, while Distributable Earnings (DE) grew 18% to $323.0 million FRE and DE (2Q'25 vs 2Q'24) | Metric (in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Fee-Related Earnings (FRE) | 358,343 | 296,475 | 21% | | Distributable Earnings (DE) | 323,014 | 272,965 | 18% | | Adjusted FRE per Share | $0.23 | $0.21 | | | Adjusted DE per Share | $0.21 | $0.19 | | FRE Margin | Metric | 2Q'25 | 2Q'24 | | :--- | :--- | :--- | | FRE Margin | 57% | 59% | Historical Non-GAAP Trends For the LTM ending Q2 2025, FRE management fees reached $2.32 billion, FRE grew to $1.37 billion, and DE increased to $1.20 billion Last Twelve Months Non-GAAP Key Metrics (as of 2Q'25) | Metric (in millions) | LTM as of 2Q'25 | LTM as of 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | FRE Management Fees | $2,318.8 | $1,752.9 | 32% | | Fee-Related Earnings (FRE) | $1,370.9 | $1,113.4 | 23% | | Distributable Earnings (DE) | $1,201.7 | $1,004.9 | 20% | Assets Under Management (AUM) Total AUM reached $284.1 billion as of June 30, 2025, a 48% YoY increase, driven by acquisitions and capital raising - AUM growth was primarily driven by the acquisitions of Kuvare, IPI, and Atalaya, as well as capital raising and business appreciation[59][60] - Permanent capital generated 87% of management fees over the last twelve months[59][60] AUM, FPAUM, and Permanent Capital (as of 2Q'25) | Metric (in billions) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | AUM | $284.1 | $192.2 | 48% | | FPAUM | $177.5 | $121.5 | 46% | | Permanent Capital | $204.6 | $145.2 | 41% | AUM and FPAUM Overview As of June 30, 2025, AUM stood at $284.1 billion and FPAUM at $177.5 billion, with growth fueled by acquisitions and capital deployment AUM by Platform (in billions) | Platform | 2Q'25 AUM | 2Q'24 AUM | | :--- | :--- | :--- | | Credit | $145.5 | $95.1 | | Real Assets | $71.5 | $39.2 | | GP Strategic Capital | $67.1 | $57.8 | FPAUM by Platform (in billions) | Platform | 2Q'25 FPAUM | 2Q'24 FPAUM | | :--- | :--- | :--- | | Credit | $93.7 | $63.7 | | Real Assets | $45.4 | $25.0 | | GP Strategic Capital | $38.4 | $32.8 | AUM Not Yet Paying Fees AUM not yet paying fees totaled $28.6 billion as of June 30, 2025, expected to generate significant future management fees - AUM not yet paying fees totaled $28.6 billion[59][60] - This is expected to generate approximately $379 million in annual FRE management fees upon deployment[59][60] Detailed Fundraising Breakdown The company raised $13.9 billion in new capital commitments in Q2 2025, with strong contributions from private wealth and institutional channels - New capital commitments of $13.9 billion in Q2 2025, including $12.1 billion in new equity capital[63][64] - Total new capital commitments over the last twelve months reached $54.6 billion[63][64] - Private wealth equity fundraising was $4.4 billion in Q2 2025, with institutional equity fundraising at $7.6 billion[63][64] Equity Fundraising Breakdown for Q2 2025 (in billions) | Platform | 2Q'25 Equity Fundraising | | :--- | :--- | | Credit | $5.8 | | Real Assets | $5.8 | | GP Strategic Capital | $0.4 | | Total | $12.1 | New Capital Commitments & Total Equity Fundraise New capital commitments in Q2 2025 reached $13.9 billion, with total equity fundraising of $12.1 billion driven by Credit and Real Assets - New capital commitments in Q2 2025 were $13.9 billion[63][64] - Total equity fundraising in Q2 2025 was $12.1 billion, with $5.8 billion each from Credit and Real Assets, and $0.4 billion from GP Strategic Capital[63][64] Private Wealth & Institutional Equity Fundraise Private wealth equity fundraising was $4.4 billion and institutional equity fundraising was $7.6 billion in Q2 2025 - Private wealth equity fundraising was $4.4 billion in Q2 2025 and $16.3 billion over the last twelve months[63][64] - Institutional equity fundraising was $7.6 billion in Q2 2025 and $19.9 billion over the last twelve months[63][64] Platform Specific Performance All three platforms delivered significant growth in AUM and FPAUM during Q2 2025, alongside strong investment performance Credit Platform The Credit platform's AUM grew 53% YoY to $145.5 billion, driven by acquisitions and direct lending fundraising - AUM and FPAUM growth was primarily driven by the Kuvare and Atalaya acquisitions and capital raising for direct lending strategies[67][68] - Direct lending originations were $9.7 billion for the quarter with net deployment of $2.5 billion; LTM originations were $46.9 billion with net deployment of $13.5 billion[67][68] - AUM not yet paying fees totaled $19.3 billion, expected to generate approximately $282 million in annual management fees upon deployment[67][68] Credit Platform AUM and FPAUM (in billions) | Metric | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | AUM | $145.5 | $95.1 | 53% | | FPAUM | $93.7 | $63.7 | 47% | Credit Platform Gross Returns | Strategy | 2Q'25 Gross Return | LTM Gross Return | | :--- | :--- | :--- | | Direct Lending | 3.0% | 13.5% | | Alternative Credit | 2.0% | 15.7% | Real Assets Platform The Real Assets platform's AUM increased 82% YoY to $71.5 billion, fueled by acquisitions and capital raising - AUM and FPAUM growth was driven by the IPI and Kuvare acquisitions and capital raising for REITs, the seventh vintage drawdown product, and the third vintage digital infrastructure product[71][72] - AUM not yet paying fees totaled $8.0 billion, expected to generate approximately $79 million in annual management fees upon deployment[71][72] Real Assets Platform AUM and FPAUM (in billions) | Metric | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | AUM | $71.5 | $39.2 | 82% | | FPAUM | $45.4 | $25.0 | 81% | Real Assets Platform Gross Returns | Strategy | 2Q'25 Gross Return | LTM Gross Return | | :--- | :--- | :--- | | Net Lease | 4.1% | 4.6% | | Real Estate Credit | 2.3% | 10.2% | | Digital Infrastructure | (0.2)% | 14.4% | GP Strategic Capital Platform The GP Strategic Capital platform's AUM grew 16% YoY to $67.1 billion, supported by fundraising and strong fund performance - AUM and FPAUM growth was primarily driven by capital raising for the sixth vintage flagship minority stakes product and platform appreciation[75][76] - AUM not yet paying fees totaled $1.3 billion, expected to generate approximately $17 million in annual management fees upon deployment[75] GP Strategic Capital Platform AUM and FPAUM (in billions) | Metric | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | AUM | $67.1 | $57.8 | 16% | | FPAUM | $38.4 | $32.8 | 17% | GP Equity Funds Gross IRR Since Inception (as of June 30, 2025) | Fund | Gross IRR | | :--- | :--- | | Blue Owl GP Stakes III | 28.9% | | Blue Owl GP Stakes IV | 55.2% | | Blue Owl GP Stakes V | 29.6% | Supplemental Financial Information Supplemental Liquidity Metrics As of June 30, 2025, the company maintained total debt of $3.29 billion, available liquidity of $780 million, and strong credit ratings - The average tenor of the company's outstanding notes was approximately 10 years as of June 30, 2025[80] Liquidity and Debt (as of June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | Total Debt | $3,290 | | Available Liquidity | $780 | | Cash and Cash Equivalents | $350 | | Revolving Credit Facility | $400 | | Cost of Debt | 3.8% | Credit Ratings | Agency | Rating | | :--- | :--- | | Moody's | Baa2 | | Fitch | BBB+ | | S&P | BBB | FPAUM to AUM Bridge The reconciliation from FPAUM of $177.5 billion to total AUM of $284.1 billion includes AUM not yet paying fees and other adjustments - AUM not yet paying fees totaled $28.6 billion, which is expected to generate approximately $379 million in annual management fees upon deployment[84][87] FPAUM to AUM Bridge (as of June 30, 2025, in billions) | Item | Amount | | :--- | :--- | | FPAUM | $177.5 | | AUM Not Yet Paying Fees | $28.6 | | Fee-Free AUM | $15.7 | | Net Appreciation, Leverage & Other | $62.3 | | AUM | $284.1 | AUM and FPAUM Rollforwards In Q2 2025, AUM increased to $284.1 billion and FPAUM grew to $177.5 billion, driven by new capital and deployments AUM Rollforward (Q2 2025, in millions) | Item | Credit | Real Assets | GP Strategic Capital | Total | | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | $139,239 | $67,062 | $66,968 | $273,269 | | New Capital Raised | $5,833 | $5,799 | $445 | $12,077 | | Change in Debt | $3,068 | $(1,263) | - | $1,805 | | Distributions | $(3,252) | $(915) | $(698) | $(4,865) | | Change in Value / Other | $580 | $803 | $416 | $1,799 | | Ending Balance | $145,468 | $71,486 | $67,131 | $284,085 | FPAUM Rollforward (Q2 2025, in millions) | Item | Credit | Real Assets | GP Strategic Capital | Total | | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | $92,890 | $43,920 | $37,822 | $174,632 | | New Capital Raised / Deployed | $2,676 | $2,042 | $654 | $5,372 | | Distributions | $(2,738) | $(856) | $(108) | $(3,702) | | Change in Value / Other | $856 | $260 | $64 | $1,180 | | Ending Balance | $93,684 | $45,366 | $38,432 | $177,482 | Appendix GAAP Results (Detailed Tables) This section provides detailed GAAP financial statements for Q2 2025 and the last twelve months GAAP Revenues, Expenses, and Net Income (in thousands) | Metric | 2Q'25 | 2Q'24 | LTM as of 2Q'25 | LTM as of 2Q'24 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues, Net | $703,106 | $549,848 | $2,618,831 | $1,986,873 | | Total Expenses | $603,824 | $377,295 | $2,163,657 | $1,448,498 | | Total Other Income (Loss) | $(14,788) | $(16,302) | $(144,145) | $(96,871) | | Net Income Attributable to Blue Owl Capital Inc | $17,426 | $33,945 | $75,404 | $92,203 | GAAP Results Summary (Quarterly, in thousands) | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total GAAP Revenues | $703,106 | $683,486 | $631,361 | $600,878 | $549,848 | | Total GAAP Expenses | $603,824 | $606,192 | $492,531 | $461,110 | $377,295 | | GAAP Net Income Attributable to Blue Owl Capital Inc | $17,426 | $7,430 | $20,743 | $29,805 | $33,945 | | Diluted EPS, Class A Share | $0.02 | $0.00 | $0.03 | $0.04 | $0.06 | Non-GAAP Results (Detailed Tables) This section presents detailed non-GAAP financial statements for Q2 2025 and the last twelve months FRE Revenues, Expenses, FRE, and DE (in thousands) | Metric | 2Q'25 | 2Q'24 | LTM as of 2Q'25 | LTM as of 2Q'24 | | :--- | :--- | :--- | :--- | :--- | | Total FRE Revenues | $646,050 | $520,006 | $2,430,251 | $1,888,134 | | Total FRE Expenses | $277,801 | $213,875 | $1,019,219 | $750,602 | | Fee-Related Earnings (FRE) | $358,343 | $296,475 | $1,370,927 | $1,113,394 | | Distributable Earnings (DE) | $323,014 | $272,965 | $1,201,714 | $1,004,872 | Non-GAAP Results Summary (Quarterly, in thousands) | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total FRE Revenues | $646,050 | $620,192 | $595,682 | $568,327 | $520,006 | | Total FRE Expenses | $277,801 | $265,205 | $245,109 | $231,104 | $213,875 | | Fee-Related Earnings (FRE) | $358,343 | $345,391 | $340,331 | $326,862 | $296,475 | | Distributable Earnings (DE) | $323,014 | $262,516 | $315,177 | $301,007 | $272,965 | | Adjusted FRE per Share | $0.23 | $0.22 | $0.23 | $0.22 | $0.21 | | Adjusted DE per Share | $0.21 | $0.17 | $0.21 | $0.20 | $0.19 | Non-GAAP and Other Measures Definitions This section defines key non-GAAP metrics such as Fee-Related Earnings (FRE), Distributable Earnings (DE), and Adjusted Shares - Fee-Related Earnings (FRE) is a non-GAAP measure of core operating performance, focusing on whether management fee revenue is sufficient to cover core operating expenses[101] - Distributable Earnings (DE) is a non-GAAP measure of operating performance, calculated as FRE plus or minus DE performance income and related compensation, interest and dividend income, interest expense, and taxes payable and TRA payments[102] - Adjusted Shares represent the weighted-average outstanding equity interests participating in distributions at each period end, including Class A and B shares, common units, and vested incentive units[103][104] Non-GAAP Reconciliations This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP figures - Detailed reconciliations from GAAP Net Income Attributable to Class A Shares to FRE and DE are provided, including adjustments for non-controlling interests, income tax expense, amortization, performance income, acquisition-related costs, equity-based compensation, and other items[105][106] - Reconciliation details for FRE Revenues and FRE Compensation & Benefits are provided, adjusting GAAP revenues and expenses to a non-GAAP basis[107][108] GAAP Margin vs FRE Margin (2Q'25 vs 2Q'24) | Metric | 2Q'25 | 2Q'24 | | :--- | :--- | :--- | | GAAP Margin | 12% | 28% | | FRE Margin | 57% | 59% | Defined Terms This section defines key terms used throughout the report, including AUM, FPAUM, investment platforms, and performance metrics - Assets Under Management (AUM) is defined as the assets the company manages, generally equal to the sum of net asset value, drawn and undrawn debt, uncalled capital commitments, and other relevant metrics[112] - Fee-Paying AUM (FPAUM) is defined as the AUM from which the company earns management fees and/or FRE performance income[112] - The Credit platform includes direct lending, alternative credit, investment grade credit, and liquid credit strategies[112] - The Real Assets platform includes net lease, real estate credit, and digital infrastructure strategies[114] - The GP Strategic Capital platform primarily focuses on acquiring equity stakes in large, multi-product private equity and private credit firms and providing debt financing[113]