Blue Owl Capital (US:OWL)2025-10-30 15:00Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.24 per share and distributable earnings (DE) of $0.22 per share for Q3 2025, with a declared dividend of $0.225 per share [3][22] - Management fees increased by 29% over the last 12 months, with 86% coming from permanent capital vehicles [22] - FRE was up 19% and DE was up 15% year-over-year [22] Business Line Data and Key Metrics Changes - The company raised over $14 billion in new capital commitments during the quarter, reaching a record $57 billion in the last 12 months, equivalent to 24% of assets under management a year ago [9] - In direct lending, gross origination was approximately $11 billion, with net deployment increasing to $3 billion [10] - In alternative credit, the company deployed approximately $5 billion over the last 12 months, focusing on small business equipment leasing, aviation, and consumer transactions [10] Market Data and Key Metrics Changes - The company noted a shift in investor focus towards credit and digital infrastructure, gaining market share from legacy categories [5] - The average annual realized loss in credit portfolios remains low at just 13 basis points, indicating strong health in the corporate and asset-backed credit markets [6][8] Company Strategy and Development Direction - The company is strategically positioned to benefit from the ongoing structural evolution in private markets, focusing on credit and digital infrastructure [5] - A substantial strategic partnership was announced with Qatar Investment Authority to scale and expand the digital infrastructure business [18] - The company aims to continue delivering exceptional returns while maintaining a focus on innovation and being ahead of market trends [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of credit portfolios and the resilience of consumer credit, despite recent headlines about credit issues [6][8] - The company anticipates continued growth in FRE and DE per share, with expectations of 20% growth in management fees and revenues by 2026 [37][38] - Management emphasized the importance of execution and communication to address market perceptions and drive stock prices higher [52] Other Important Information - The company has an installed base of over 160,000 individual investors and is adding new products in digital infrastructure and alternative credit [19] - The company completed its largest strip sale to date, generating over $2.5 billion in proceeds [19] Q&A Session Summary Question: What is the expected growth in FRE and margins for 2026 and 2027? - Management expects meaningful acceleration in FRE per share and margin expansion as they move into 2026 and 2027, aligning with their long-term growth goals [37][38] Question: How have retail flows been impacted by recent credit volatility? - Management reported strong flows and continued momentum in retail products, indicating resilience despite market volatility [46][47] Question: What is being done to change market perceptions about the company's stock? - The company is focused on executing well and communicating effectively with shareholders to address any misunderstandings about its business [52] Question: Can you elaborate on the digital infrastructure business and its pipeline? - Management highlighted a vast pipeline of opportunities in digital infrastructure, with significant capital commitments and strong demand for their services [84][86]