Blue Owl Capital (US:OWL)2023-05-04 20:39Financial Performance - For the three months ended March 31, 2023, Blue Owl Capital Inc. reported a net income of $8.3 million, a significant improvement from a net loss of $11.8 million in the same period of 2022[22]. - Total Revenues increased to $390.986 million in Q1 2023, up from $275.977 million in Q1 2022, representing a 41.6% increase[68]. - Consolidated Net Income attributable to Blue Owl Capital Inc. was $8.317 million, a turnaround from a loss of $11.815 million in the prior year[68]. - Distributable Earnings reached $209.014 million, a 34.2% increase from $155.726 million in the same quarter last year[81]. - The company reported a basic earnings per Class A share of $0.02, compared to a loss of $(0.03) in Q1 2022[159]. - Consolidated net income for the three months ended March 31, 2023, was $42,034, compared to a net loss of $(22,916) in the same period of 2022, representing a significant turnaround[166]. Revenue Sources - Fee-related earnings for the first quarter of 2023 were $225.9 million, up 32% from $171.4 million in Q1 2022[22]. - Management fees rose to $358.825 million, an increase of $111.193 million or 44.9% compared to the previous year[68]. - Direct Lending Products generated FRE revenues of $215.712 million, an increase of $67.535 million or 45.5% year-over-year[82]. - GP Capital Solutions Products saw FRE revenues rise to $135.652 million, up by $28.389 million or 26.5% compared to Q1 2022[82]. - Real Estate Products revenues rose to $29.622 million, a significant increase from $17.158 million in Q1 2022[215]. Assets Under Management (AUM) - As of March 31, 2023, total assets under management (AUM) reached $144.4 billion, with fee-paying AUM (FPAUM) at $91.6 billion[23]. - Blue Owl has $11.7 billion in AUM not yet paying fees, which could generate approximately $155 million in annualized management fees once deployed[24][35]. - The increase in AUM for direct lending was driven by $0.9 billion of overall appreciation and $0.9 billion in new net debt commitments[39]. Expenses and Costs - Total Expenses increased to $324.643 million, up from $298.712 million, marking an 8.7% rise[68]. - FRE compensation and benefits expenses increased to $103,600, up from $74,969, representing a $28,631 increase year-over-year[83]. - Total FRE expenses rose to $151,630, compared to $101,735 in the previous year, marking a $49,895 increase[83]. - The increase in FRE general, administrative, and other expenses was primarily driven by a $10.0 million rise in distribution costs and a $5.8 million increase in occupancy costs[84]. Capital Raising and Investments - The company raised $3.8 billion in new capital during Q1 2023, with $1.2 billion from diversified lending and $1.5 billion from real estate products[39][40]. - The Wellfleet Acquisition contributed to the growth in Direct Lending and GP Capital Solutions, enhancing fundraising efforts[83]. Debt and Liquidity - As of March 31, 2023, the company had long-term debt obligations totaling $1.45 billion, including $700 million in 3.125% Senior Notes due 2031, $400 million in 4.375% Senior Notes due 2032, and $350 million in 4.125% Senior Notes due 2051[104]. - The company anticipates that its current liquidity position will be sufficient to meet working capital needs for at least the next 12 months[101]. - The company expects to pay approximately $936.8 million under the Tax Receivable Agreement (TRA) as of March 31, 2023, assuming no material changes in tax law and sufficient taxable income[106]. Market Conditions and Risks - Blue Owl continues to monitor macroeconomic factors that may impact fundraising activity and capital deployment, which could affect future management fees[31]. - Adverse market conditions, including inflation and interest rate increases, may negatively impact the company's liquidity and cash flows from management fees[119]. - Difficult market conditions may reduce the value or performance of investments, impacting the ability to raise or deploy capital[137]. Shareholder Returns - For Q1 2023, the company declared a fixed quarterly dividend of $0.14 per Class A Share, targeting an annual dividend of $0.56 per share[113]. - Cash dividends paid per Class A share were $0.13, up from $0.10 in the previous year[162]. - The company authorized a share repurchase program of up to $150 million for Class A Shares, which may be executed through various market transactions[110].