Financial Data and Key Metrics Changes - The company reported a 31% increase in management fees, with approximately 90% derived from permanent capital vehicles [35] - Fee-related earnings (FRE) grew by 23%, while distributable earnings (DE) increased by 20% on a last twelve months (LTM) basis [35][23] - The company raised $6.7 billion in equity during the first quarter and $29.4 billion over the last twelve months, marking a 76% increase from the prior year [36] Business Line Data and Key Metrics Changes - In direct lending, gross origination reached nearly $13 billion, with net origination over $4.5 billion for the quarter, more than double the previous quarter's net origination [26] - The direct lending portfolio gross returns were 3.1% in the first quarter and 13.3% over the last twelve months [39] - The net lease strategy saw a record quarter of commitments totaling $3.8 billion, with commitments over the last twelve months reaching $8 billion at an average cap rate of roughly 8% [46] Market Data and Key Metrics Changes - The company raised over $6.5 billion in the first quarter, with $4 billion raised in private wealth, primarily across perpetually distributed products and GP stakes [25] - The company noted a significant increase in investor interest in alternative credit solutions, particularly as traditional securitization markets face challenges [22] Company Strategy and Development Direction - The company is focused on innovation, diversification, and scale, aligning with the ongoing evolution of the alternatives industry [11] - The strategy emphasizes downside protection, income generation, and inflation protection, which are particularly valuable in volatile markets [18] - The company aims to leverage its permanent capital model to provide stability and predictability in uncertain economic environments [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market volatility, citing a strong track record of performance during previous disruptions [16] - The company anticipates continued growth in FRE per share, expecting to narrow the gap between FRE growth and FRE per share growth over the next few years [56] - Management highlighted the defensive nature of their business model, which is expected to perform well even in challenging economic conditions [50] Other Important Information - The company completed the merger of OTF and OTF2, positioning OTF as the largest technology-focused BDC in the public market, which is expected to drive additional management fees [20] - The company has over $23 billion of assets under management (AUM) that will begin to pay management fees once capital is deployed, potentially driving an incremental $290 million in revenue [19] Q&A Session Summary Question: How to bridge the gap from stable growth to better earnings per share growth? - Management acknowledged a gap between FRE growth and FRE per share growth due to acquisitions and expects this gap to narrow in the coming years, targeting 20% growth in FRE per share over the next five years [55][56] Question: Evolution of retail investors' behavior during volatility? - Management noted that retail investors are increasingly recognizing the benefits of stability and predictability offered by Blue Owl products, especially during volatile periods [60][64] Question: Drivers for expected acceleration in institutional business? - Management highlighted the launch of flagship funds and new products as key drivers for anticipated growth in institutional fundraising throughout the year [68][76] Question: Dynamics of GP stakes fees and future run rate? - Management explained that the decline in GP stakes fees was due to a fee step down and catch-up fees from the previous quarter, indicating a clean quarter for management fees [84][86] Question: Spread and pricing dynamics in the market? - Management indicated that dislocated environments are beneficial for the company, with expectations for spreads to widen as competition in the public market diminishes [90][95]

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 Q4 2024, with full-year FRE at $0.86 and DE at $0.77 per share [8][9] - For the last twelve months, management fees increased by 31%, FRE grew by 23%, and DE rose by 20% [36][23] - The company raised $6.7 billion in equity in Q1 2025 and $29.4 billion over the last twelve months, marking a 76% increase from the prior year [37][23] Business Line Data and Key Metrics Changes - In direct lending, gross origination was nearly $13 billion, with net origination over $4.5 billion for the quarter, more than double the previous quarter's net origination [26][27] - The net lease strategy saw a record quarter of commitments totaling $3.8 billion, with commitments over the last twelve months reaching $8 billion at an average cap rate of roughly 8% [46][32] - The alternative credit portfolio generated gross returns of 6.1% in Q1 and 15.2% over the last twelve months [44] Market Data and Key Metrics Changes - The company raised over $6.5 billion in the first quarter, with $4 billion raised in private wealth, primarily across perpetually distributed products and GP stakes [25][37] - The company noted a significant increase in fundraising from institutional channels, with expectations for stronger fundraising in Q2, Q3, and Q4 due to flagship fund launches [76][78] Company Strategy and Development Direction - The company is focused on innovation, diversification, and scale, with a strategy aimed at downside protection, income generation, and inflation protection [11][19] - The merger of OTF and OTF2 is expected to drive approximately $135 million of incremental annual management fees, enhancing revenue visibility [21] - The company is actively pursuing opportunities in alternative credit and digital infrastructure, anticipating increased market share as traditional markets face challenges [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid economic uncertainties, highlighting the defensive nature of its business model [18][50] - The company expects to see increased demand for private credit solutions as traditional markets face volatility, with a focus on maintaining strong credit quality [27][92] - Management anticipates a narrowing gap between FRE growth and FRE per share growth, projecting 20% growth in FRE per share over the next five years [58] Other Important Information - The company declared an annual fixed dividend of $0.90 for 2025, a 25% increase from the prior year [9] - The company has over $23 billion of assets under management (AUM) that will begin to pay management fees once capital is deployed, driving an incremental $290 million of revenue [21] Q&A Session Summary Question: How to bridge the gap from stable growth to better earnings per share growth? - Management acknowledged a gap between FRE growth and FRE per share growth due to acquisitions, expecting this gap to narrow as they progress [56][58] Question: Evolution of retail investors' behavior during volatility? - Management noted that retail investors are increasingly recognizing the benefits of stable, income-oriented products during volatile periods, leading to optimism about future adoption [61][65] Question: Drivers behind expected acceleration in institutional business? - Management highlighted the launch of flagship funds and new products as key drivers for expected acceleration in institutional fundraising [76][78] Question: Decline in GP stakes fees relative to AUM growth? - Management explained that the decline was due to a fee step down and catch-up fees from the previous quarter, indicating a clean quarter for management fees [82][84] Question: Spread and pricing dynamics in the market? - Management indicated that dislocated environments are beneficial for the company, with expectations for spreads to widen as competition in the public market decreases [88][92]