Core Thesis - Rithm Capital Corp. (RITM) is viewed positively due to its diversified asset management model, combining mortgage servicing with alternative asset management, which has led to a high-yield, cash-generative business [2][5] Financial Performance - As of February 25th, RITM's share price was $10.22, with trailing and forward P/E ratios of 8.59 and 5.08 respectively [1] - The company has maintained a steady quarterly dividend of $0.25 per share for four years, supported by rising non-GAAP EPS/distributable income per share, which increased from $0.34 to $0.54 as of Q3 2025 [2] - RITM's annual earnings exceed $2 per share, covering the current $1 annual dividend [3] Growth Strategy - Rithm's growth has been primarily driven by acquisitions, including Crestline Management LP, a $17 billion private credit and alternative asset manager, and Paramount Group Inc., which owns $1.6 billion in premium office properties [3][4] - These acquisitions have expanded Rithm's footprint in alternative credit and high-quality real estate, enhancing revenue diversification [4] Valuation and Market Potential - As of Q3 2025, RITM's book value was $12.38 per share, while the stock traded at $11.20, indicating a 0.90x book multiple [4] - Comparable asset managers trade at 1.5–2.0x book, suggesting a potential upside exceeding 50% as the market recognizes Rithm's underlying value [5]

Company Overview - Franklin Templeton's U.S. and European alternative credits businesses, Benefit Street Partners and Alcentra, have merged under the brand Benefit Street Partners (BSP) [1] - The integration aims to unify the two credit firms acquired in 2019 and 2022, enhancing their global platform [1] Strategic Goals - BSP plans to pursue both inorganic and organic growth over the next five years, with a focus on acquisitions in attractive areas of the alternative credit landscape [2] - The firm is considering expansion into new markets such as Asia and the Middle East [2] Market Insights - A recent study by BSP revealed that 47% of respondents plan to increase their exposure to infrastructure debt over the next 12 months, followed by 39% for direct lending and 35% for asset-based lending [3] - Among 135 global institutional investors surveyed, 93% intend to either maintain (42%) or increase (51%) their exposure to alternative credit by 2026, driven by the potential for higher returns and greater diversification [4] Asset Management - BSP currently manages $92 billion in assets, including those from Apera Asset Management, which was acquired in October 2025 [5] - The firm oversees strategies such as private debt, real estate debt, structured credit, and liquid loans [5]

Core Insights - Goal Investment Management has formed a strategic joint venture with Ares Alternative Credit funds to enhance its investment strategies in consumer assets [1][2] Group 1: Joint Venture Details - The joint venture will utilize Goal's operational and underwriting expertise alongside Ares' capital to acquire and manage consumer loan portfolios [2] - Investment sectors for the joint venture include education finance, home improvement, solar loans, and consumer installment loans [2] Group 2: Management and Strategy - Goal will manage the joint venture's portfolio using its proprietary analytics platform and sourcing network to identify high-value opportunities in the secondary market [3] - Goal has been active in the consumer asset space since 2013 and has managed the Goal Investment Credit Fund since 2022 [3] Group 3: Leadership Comments - Peter Sadowski, CIO at Goal, emphasized the significance of the partnership with Ares, highlighting the potential for scaling acquisition capabilities while adhering to disciplined underwriting standards [4] - Vincent Salerno from Ares expressed enthusiasm for the collaboration, noting the strength of Ares' flexible capital in supporting Goal's investment expansion [4] Group 4: Company Background - Goal Investment Management specializes in the U.S. consumer finance sector and has completed over 60 transactions, acquiring assets valued at over $2 billion [5] - Ares Management Corporation is a leading global alternative investment manager with over $595 billion in assets under management as of September 30, 2025 [6]

Core Insights - XA Investments LLC plans to expand its XAI Interval Fund Index™ with the launch of the XAI Interval Fund Credit Index™ (INTVL-C) in Q1 2026, which will track the performance of credit interval and tender offer funds [1][5]. Company Overview - XA Investments LLC, based in Chicago and founded in 2016 by XMS Capital Partners, serves as the investment adviser for multiple closed-end funds and provides investment fund structuring and consulting services [6]. Index Details - The INTVL-C will enhance transparency for asset managers by providing comprehensive performance metrics for credit funds, enabling better investment decisions and risk assessments [2]. - The sub-index will include over 50 credit interval and tender offer funds, allowing fund managers to benchmark their performance against peers in the credit interval fund market [3][5]. - The XAI Interval Fund Index™ measures a broader universe of interval and tender offer funds with over $100 million in net assets, currently consisting of 93 constituents across seven asset classes [5]. Market Position - The constituents of INTVL-C represent leading funds in the interval fund marketplace, with top managers including Cliffwater, CION, Carlyle, PIMCO, and others [4].

Core Viewpoint - Blue Owl Capital Inc. has launched the Blue Owl Alternative Credit Fund (OWLCX), aimed at providing individual investors access to alternative credit assets traditionally available only to institutional investors [1][5]. Fund Launch and Capital - OWLCX secured $850 million in capital from a diverse client base, marking it as one of the largest interval fund launches in history [2]. - The fund targets the estimated $11.2 trillion asset-based finance market, focusing on generating current income and long-term capital appreciation [1]. Investment Strategy - OWLCX employs a flexible mandate that allocates across credit assets backed by contractual cash flows from financial and hard assets, aiming to mitigate risk through diversified pools of amortizing assets [3]. - The fund intends to provide monthly distributions and quarterly liquidity via repurchase offers, structured as a registered interval fund [3]. Management Team - The fund is managed by Blue Owl Alternative Credit Advisors II LLC, which has a team of over 65 professionals with extensive expertise and relationships in the industry [4]. - The management team utilizes a dedicated data science effort, leveraging decades of counterparty data and millions of data points to enhance analytical capabilities [4]. Market Opportunity - Blue Owl's leadership believes that asset-based finance represents a significant opportunity for investors in private credit, with OWLCX designed to support individual investors seeking differentiated exposure and resilient performance across market cycles [5]. Company Overview - As of June 30, 2025, Blue Owl manages over $284 billion in assets across three multi-strategy platforms: Credit, Real Assets, and GP Strategic Capital [6]. - The company aims to provide differentiated alternative investment opportunities that deliver strong performance and risk-adjusted returns [6].

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]

Financial Performance - Total revenue for the third quarter grew 15% to $3.2 million, compared to $2.8 million for the prior-year period[6] - GECC base management fees grew over 40% year-over-year due to FPAUM growth[6] - Fiscal 3Q25 revenue grew 15% to $3.2 million, compared to $2.8 million in the prior-year period[26] - Fiscal 3Q25 Adjusted EBITDA was $0.5 million, compared to $1.2 million in Fiscal 3Q24[24] - Net loss from continuing operations was ($4.5) million for Fiscal 3Q25, compared to net loss of ($2.9) million in the prior-year period[26] Assets Under Management - Assets Under Management ("AUM") reached $768 million as of March 31, 2025, a 12% increase from March 31, 2024[29] - Fee-Paying AUM ("FPAUM") was $565 million as of March 31, 2025, up 15% from March 31, 2024[31] - Great Elm ended the quarter with approximately $32 million of cash to deploy across its growing alternative asset management platform[6] Strategic Initiatives - Great Elm launched Monomoy Construction Services, LLC ("MCS") in February 2025 through the acquisition of Greenfield CRE, LLC ("Greenfield")[6] - Great Elm Capital Corp ("GECC") launched a $100 million At-the-Market equity program in May 2025[6] - Through May 6, 2025, Great Elm repurchased approximately 4.8 million shares for approximately $8.7 million, at an average cost of $1.84 per share[6]