Industry Overview - The alternative asset management industry has shown incredible growth and strong investment performance over the past decade [2] - The industry is characterized by resilience, even in the face of double-digit drawdowns in stock prices [2] Key Players - Marc Lipschultz, co-CEO of Blue Owl, has a background in founding the legacy credit business at Blue Owl and previously worked at KKR [3] - Kip DeVeer, Co-President of Ares, has extensive experience, having previously run ARCC and served as Head of Credit [3]

Summary of Blue Owl Capital Conference Call Company Overview - **Company**: Blue Owl Capital (NYSE: OWL) - **Industry**: Alternative Asset Management and Business Development Companies (BDCs) Key Points and Arguments Industry Resilience and Evolution - The alternative asset management industry has shown resilience despite experiencing double-digit drawdowns in stock prices, indicating strong investment performance over time [1][2] - The industry has evolved from primarily private equity and direct lending to include capital-light businesses, transaction fees, and on-balance sheet insurance liabilities [26] Business Model and Strategy - Blue Owl started as a direct lending business and has expanded into asset-based lending, digital infrastructure, and GP stakes, focusing on bespoke capital solutions [9][10] - The firm emphasizes downside protection, principal preservation, and yield as core investment strategies, which remain consistent over the years [11][12] - The majority of growth has been organic, with acquisitions being a smaller percentage of overall enterprise growth [12][13] Importance of Scale - Scale is critical in the credit space, allowing for more origination, underwriting, and participation in larger financing deals [17][18] - Larger firms can access better credits and more opportunities, which is not uniformly true across all investment strategies [19][20] Volatility and Market Conditions - Periods of market volatility are viewed positively as they create opportunities for deploying capital into higher-quality companies at better spreads [32][33] - The firm has developed expertise in managing assets during volatile markets, which can lead to accelerated growth [33] Portfolio Performance and Risk Management - Blue Owl's software lending portfolio has a low default rate of 0.03%, indicating high quality and performance [76][77] - The average loan-to-value (LTV) ratio for software loans is around 30%, providing a significant equity cushion [87] - The firm maintains a diversified portfolio with a focus on senior secured loans, which are less susceptible to market downturns [52][56] Market Perception and Education - There is a need for better communication and education regarding the private credit industry to counter negative narratives and misconceptions [65][66] - The firm believes that strong performance and results will ultimately speak for themselves and help change market perceptions [51][62] Future Outlook - Blue Owl is focused on maintaining a disciplined approach to credit quality and origination, ensuring that they do not compromise standards for growth [44] - The firm is optimistic about the future, believing that their business model and strategies will continue to yield positive results despite market fluctuations [61][62] Additional Important Insights - The firm has approximately $600 billion in assets under management (AUM) and expects manageable inflows from the wealth channel [39] - The alternative credit business is expected to grow significantly, with a focus on direct origination and a diverse range of underlying assets [88][89]

Summary of Ares Management and Blue Owl Conference Call Industry Overview - The conference focused on the alternative asset management industry, particularly private credit and direct lending, highlighting its resilience and growth potential [1][2][3] Key Companies Discussed - **Ares Management (NYSE: ARES)** - Co-President: Kipp deVeer - **Blue Owl** - Co-CEO: Mark Lipschultz Core Insights and Arguments Ares Management - Ares has five credit businesses: two direct lending businesses in the U.S. and Europe, an asset-based finance business, a loan and high-yield business, and an opportunistic credit business [3][4] - The firm has experienced significant growth, with a focus on strategic initiatives and operational improvements [6][7] - Ares emphasizes the importance of scale in credit, allowing for better origination and underwriting capabilities [20][21] - The firm operates a capital-light, fee-driven business model, focusing on high cash flow and high dividend returns [30][32] Blue Owl - Blue Owl has evolved from a direct lending business to include asset-based lending and digital infrastructure, maintaining a focus on capital solutions and downside protection [10][11][12] - The firm has achieved substantial growth, with its real assets business growing from $12.5 billion to $45 billion in assets [13] - Blue Owl's strategy emphasizes serving both individual and institutional investors equally [12] Important Trends and Observations - The alternative asset management industry has seen a shift towards capital-light, fee-driven models, which are becoming more prevalent among firms like Ares and Blue Owl [28][29] - Volatility in the market is viewed positively, as it allows firms to deploy capital into higher-quality companies and better spreads [33][34][36] - The firms have developed expertise in managing assets during volatile markets, which has historically led to accelerated growth [34][35] Risk Management and Portfolio Diversification - Ares and Blue Owl maintain diversified portfolios with low leverage, which helps mitigate risks during economic downturns [53][54][56] - The average position size in Ares' portfolio is sub-20 basis points, providing a significant equity cushion [53] - The firms emphasize the importance of maintaining high credit standards and rigorous underwriting processes to ensure portfolio durability [44][45] Software Lending and AI Impact - The software lending sector is highlighted as a high-performing area within the portfolios, with low default rates and strong performance metrics [81][82] - The firms are cautious about the risks associated with AI but believe that their selected software companies have strong fundamentals and market positions [85][90] Conclusion - Both Ares and Blue Owl are positioned well within the alternative asset management industry, leveraging their scale, diversified portfolios, and strategic focus on capital-light models to navigate market volatility and capitalize on growth opportunities [62][63][64]

Market Sentiment and Economic Indicators - The market is showing a defensive trend, with consumer discretionary sectors weakening relative to defensive sectors like healthcare and utilities [1][2] - There has been a notable change in market character over the past two to three months, indicating a shift towards more defensive investments [2] Federal Reserve and Interest Rates - The current 2-year yield is around 3.55% to 3.60%, which is still below the policy rate, suggesting that the Federal Reserve may need to adjust its stance in response to economic signals [3] - The 30-year yields have modestly increased since the last Fed meeting, with expectations that the 10-year yield will not exceed 4.30% to 4.35% in the current environment [4] Market Dynamics and Investment Strategies - The market is caught between a potential flush of weak hands in crowded AI positions and a fundamental reassessment of the economy's shape [5] - There is a belief that the market remains in an uptrend, but a significant oversold condition may be necessary to prompt action from the Fed before the December meeting [6] Sector Performance and Stock Analysis - Concerns are raised about certain technology stocks, particularly those showing distributive top formations, such as Salesforce and Workday, which may indicate underlying weakness [8][10] - Financials have performed well, but if banks begin to falter, it could negatively impact alternative asset managers like Apollo and Blackstone, which are already experiencing declines [10][11]

Financial Data and Key Metrics Changes - Fiscal first quarter revenue was $10.8 million compared to $4 million for the prior year period, primarily driven by $7.4 million in revenue from the sale of a built-to-suit property [12] - The company reported a net loss of $7.9 million for the quarter versus net income of $3 million a year ago, mainly due to unrealized losses on investments [13] - Adjusted EBITDA for the quarter was a loss of $500,000 compared to a gain of $1.3 million in the prior year period [13] - Fee-paying assets under management (AUM) grew 9% year over year to approximately $594 million, or 10% on a pro forma basis to approximately $601 million [4][12] Business Line Data and Key Metrics Changes - Monomoy BTS sold its second built-to-suit development property for over $7 million, generating a gain of over $500,000 [6] - Investment management and property management fees at Monomoy CRE increased 12% over the prior year period, driven by growth in fee-paying AUM and rental income [8] - GECC raised approximately $28 million in equity proceeds, including a $15 million private placement and $13 million through its At the Market Equity Program [8] Market Data and Key Metrics Changes - The REIT deployed over $13 million to acquire seven new properties at attractive cap rates [8] - GECC doubled its borrowing capacity under its revolver to $50 million, reducing the interest rate by 50 basis points [9] Company Strategy and Development Direction - The company aims to expand its platform, grow assets under management, and enhance profitability [4] - A transformative partnership with Kennedy Lewis Investment Management was established, committing up to $150 million in leverageable capital to accelerate real estate platform expansion [5] - The company is focused on growing fee-paying AUM and scaling its credit and real estate platforms [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction of the business and the ability to leverage fixed costs for growth [17][18] - Despite setbacks from First Branch's bankruptcy, the company believes it is in a strong position with ample deployable cash and a solid balance sheet [10][11] Other Important Information - The company ended the quarter with approximately $53.5 million in cash, providing flexibility for growth initiatives [11] - The stock repurchase program was expanded by $5 million to a total of $25 million, with 5.6 million shares repurchased for $10.9 million [11] Q&A Session Summary Question: Current growth trajectory and expense structure - Management indicated that the bulk of fixed costs are in place, and the focus is now on growth, particularly in real estate and BDC [17][18] Question: Information on Monomoy REIT - Management acknowledged the limited public information on Monomoy REIT, which focuses on industrial outside storage and has over 150 buildings [20][21] - The REIT has built a built-to-suit business and aims for potential public listing in the future [21][22]

Core Insights - Brookfield Corporation reported strong financial results for Q3 2025, with significant growth in distributable earnings and record deployable capital [2][5][13] - The company achieved distributable earnings before realizations of $5.4 billion ($2.27 per share) over the last twelve months, representing an 18% increase year-over-year [1][8] - The asset management business saw record fee-related earnings of $754 million, a 17% increase from the prior year [6][14] Financial Performance - Total consolidated net income for the quarter was $284 million, with net income attributable to Brookfield shareholders at $219 million [4][24] - Distributable earnings for the quarter were $1.5 billion ($0.63 per share), up from $1.3 billion in the same period last year [8][21] - The wealth solutions business reported a 15% year-over-year increase in distributable earnings, reaching $1.7 billion over the last twelve months [6][20] Capital Deployment - The company ended the quarter with a record $178 billion of deployable capital, including $74 billion in cash and financial assets [13][17] - Brookfield executed $140 billion of financings in 2025, highlighting strong investor demand and capital market support [17][30] Strategic Initiatives - Brookfield announced an agreement to acquire the remaining 26% interest in Oaktree, enhancing its global credit platform [14][30] - The company is expanding its wealth solutions business globally, marking significant milestones in its growth strategy [2][6] Operating Highlights - Operating businesses generated resilient cash flows, with total earnings from realizations of $642 million over the last twelve months [7][12] - The real estate portfolio maintained strong occupancy rates, with super core assets at 96% and core plus portfolio at 95% [14][30] Shareholder Returns - The Board declared a quarterly dividend of $0.06 per share, consistent with the previous quarter [15][28] - Year-to-date, the company returned $180 million to shareholders through dividends and share repurchases [17][30]

Core Insights - Great Elm Group, Inc. raised nearly $250 million in recent capital, positioning the company for continued growth in its alternative asset management platform [2][5][10] - The company reported a 10% increase in Pro Forma Fee-Paying AUM and a 7% increase in AUM year-over-year as of September 30, 2025 [1][9] - Great Elm Real Estate Ventures continues to expand, supported by construction management revenue and the sale of a build-to-suit property for $7.4 million [3][9] Financial Performance - Total revenue for the first quarter was $10.8 million, up from $4.0 million in the prior-year period, primarily due to the sale of the second Monomoy BTS property [9][24] - The company reported a net loss of $(7.9) million for the quarter, compared to net income of $3.0 million in the prior-year period, driven by unrealized losses [9][24] - Adjusted EBITDA for the first quarter was $(0.5) million, down from $1.3 million in the prior-year period [9][25] Strategic Partnerships and Investments - In July 2025, Great Elm formed a strategic partnership with Kennedy Lewis Investment Management, which included a $150 million term loan to Monomoy REIT and the purchase of 1.4 million shares of GEG common stock [5][10] - In August 2025, Woodstead Value Fund invested $9.0 million in GEG, purchasing 4.0 million shares at $2.25 per share [11] - GECC raised approximately $85.4 million in debt and equity capital during the quarter, including a private placement of 1.3 million shares [9][12] Asset Management Growth - As of September 30, 2025, GEG's Fee-Paying AUM and AUM totaled approximately $594 million and $785 million, respectively, reflecting growth of 9% and 6% year-over-year [5][9] - The company has approximately $53.5 million in cash and marketable securities to support growth initiatives [9][21] - GEG's stock repurchase program has been increased to $25 million, with approximately $10.9 million spent to repurchase 5.6 million shares [9][21]

Morgan Stanley analysts were not about to be left out of Wall Street’s private market gold rush as companies with mind-boggling valuations like OpenAI and SpaceX put off public listings. On Tuesday, the investment banking giant launched a landing page within its research portal dedicated exclusively to private companies, according to an internal memo sent out by the firm’s global director of research, Katy Huberty, and shared with The Daily Upside. The page will “spotlight the innovators and trends that a ...

Core Insights - Madison Large Cap Fund underperformed the S&P 500 Index, decreasing by 2.2% in Q3 2025 compared to an 8.1% gain for the index, primarily due to a market focus on short-term profits [1] - The fund's top five contributors included Brookfield Corporation, which reported solid results across its asset management, real estate, and insurance operations [3] Fund Performance - The Madison Large Cap Fund's performance in Q3 2025 was significantly lower than the S&P 500 Index, indicating challenges in the current market environment [1] - The fund's top five holdings were highlighted, with Brookfield Corporation being one of the key contributors for the quarter [3] Brookfield Corporation Highlights - Brookfield Corporation's stock had a one-month return of 1.72% and a 52-week gain of 20.01%, closing at $46.09 per share with a market capitalization of $103.41 billion as of November 10, 2025 [2] - The company hosted its annual investor day during the quarter, outlining expectations for sustained business growth and shareholder returns [3] Hedge Fund Interest - Brookfield Corporation was held by 37 hedge fund portfolios at the end of Q2 2025, a decrease from 40 in the previous quarter, indicating a slight decline in hedge fund interest [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4]

Core Viewpoint - Great Elm Group, Inc. is set to release its financial results for the fiscal quarter ended September 30, 2025, on November 12, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be released after the close of market trading on November 12, 2025 [1] - A conference call and webcast will be held on November 13, 2025, at 8:30 a.m. Eastern Time to discuss the fiscal 2026 first quarter financial results [2] Group 2: Conference Call Details - Interested parties can participate in the conference call by dialing +1 (877) 407-0752 for domestic calls and +1 (201) 389-0912 for international callers [2] - Participants should enter the Conference ID 13750804 if prompted [2] Group 3: Company Overview - Great Elm Group, Inc. is a publicly-traded alternative asset manager focused on a diversified portfolio across credit, real estate, specialty finance, and other alternative strategies [4] - The company manages Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust [4] - More information about the company can be found on its website [4]