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]

Core Insights - Blue Owl Capital Inc. has successfully closed a private offering of an alternative credit fund, raising $850 million in capital commitments from a diverse client base [1][3] - The fund aims to provide current income and capital appreciation through investments in alternative credit strategies, particularly focusing on asset-based finance [2][4] - This achievement highlights Blue Owl's capability to access a large and underpenetrated alternative credit market, catering to the increasing demand for institutional-grade private credit solutions among individual investors [3][4] Company Overview - Blue Owl Capital manages over $273 billion in assets as of March 31, 2025, and operates across three multi-strategy platforms: Credit, Real Assets, and GP Strategic Capital [5] - The firm emphasizes its strong permanent capital base, which allows it to offer private capital solutions aimed at long-term growth and strong performance [5] - With a global team of over 1,200 experienced professionals, Blue Owl is positioned to create exceptional investment opportunities [6]

May 8, 2025 Fiscal Third Quarter Ended March 31, 2025 NASDAQ: GEG 1 Amount excludes Consolidated Funds. March 2023 May 8, 2025 ©2023 Great Elm Capital Corp. 2 2 • In February 2025, the Company launched Monomoy Construction Services, LLC ("MCS"), an integrated, full-service construction business through the acquisition of Greenfield CRE, LLC ("Greenfield") and Monomoy BTS Construction Management, LLC • In May 2025, Great Elm Capital Corp. ("GECC") launched a $100 million At-the-Market equity program, providi ...