Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q1 2023 Earnings Presentation
26 slides from Blue Owl Capital's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Earnings
Blue Owl Capital Inc. First Quarter 2023 Earnings May 4, 2023
Slide 2: Disclosures
Disclosures About Blue Owl Blue Owl Capital Inc. (“Blue Owl” or the “Company”) is a global alternative asset manager with $144.4 billion of assets under management as of March 31, 2023. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Capital So
Slide 3: Disclosures
Disclosures Non-GAAP Financial Measures; Other Financial and Operational Data This presentation includes certain non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and that may be different from non-GAAP financi
Slide 4: Blue Owl Overview
Blue Owl Overview With over $144 billion of assets under management, Blue Owl is a leading provider of private capital solutions Investment Strategies Direct Lending GP Capital Solutions Real Estate • A leading direct lending business with • A leading GP capital solutions • A leading private equity
Slide 5: First Quarter 2023 Highlights - Key Metrics
Blue Owl’s First Quarter 2023 Highlights - Key Metrics (dollars in billions) AUM FPAUM Permanent Capital $144.4 $91.6 $114.3 42% 40% 34% $102.0 $65.6 $85.6 1Q’22 1Q’23 1Q’22 1Q’23 1Q’22 1Q’23 Direct Lending Total Fundraise Private Wealth Fundraise Gross Originations $24.7 $11.0 $26.3 (29)% 109% 119%
Slide 6: First Quarter 2023 Highlights
First Quarter 2023 Highlights • GAAP Net Income of $8.3 million, or $0.02 per basic and $0.02 per diluted Class A Share Financial Results • Fee-Related Earnings of $225.9 million, or $0.16 per Adjusted Share • Distributable Earnings of $209.0 million, or $0.15 per Adjusted Share • AUM of $144.4 bill
Slide 7: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 1Q'23 1Q'22 % Change 1Q'23 1Q'22 % Change GAAP Revenues Direct Lending (including Part I Fees of $84,856, $46,104, $269,080 and $ 208,188 $ 133,704 56% $ 714,459 $ 472,622 51% $161,742) GP Capital
Slide 8: Historical Trends (GAAP)
Historical Trends (GAAP) • GAAP Management Fees of $358.8 million for the quarter increased 45% compared to 1Q'22 ◦ GAAP Management Fees of $1,322.8 million for the last twelve months increased 61% compared to prior year • GAAP Consolidated Net Income (Loss) of $42.0 million for the quarter compared
Slide 9: Non-GAAP Results (Unaudited)
Non-GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 1Q'23 1Q'22 % Change 1Q'23 Adj. 1Q'22 % Change FRE Revenues Direct Lending (including Part I Fees of $84,856, $46,104, $269,080 and $ 208,188 $ 133,704 56% $ 714,459 $ 472,622 51% $161,742) GP
Slide 10: Historical Trends (Non-GAAP)
Historical Trends (Non-GAAP) • FRE Management Fees of $368.6 million for the quarter increased 44% compared to 1Q'22 ◦ FRE Management Fees of $1,361.0 million for the last twelve months increased 55% compared to prior year • Fee-Related Earnings of $225.9 million for the quarter increased 32% compar
Slide 11: Assets Under Management
Assets Under Management • AUM of $144.4 billion increased 42% since March 31, 2022 ◦ The increase was primarily driven by capital raised across the platform, deployment in Direct Lending and the Wellfleet Acquisition • FPAUM of $91.6 billion increased 40% since March 31, 2022 ◦ The increase was prim
Slide 12: Fundraising
Fundraising • Total Fundraise of $3.8 billion during the quarter was driven by $1.9 billion in Direct Lending, $1.5 billion in Real Estate and $0.3 billion in GP Capital Solutions • Private Wealth Fundraise of $1.6 billion during the quarter was primarily driven by diversified and technology lending
Slide 13: Direct Lending Products
Direct Lending Products • AUM of $71.6 billion increased 60% since March 31, 2022 ◦ The increase was primarily driven by capital raised in diversified and technology lending products, and the Wellfleet Acquisition • FPAUM of $51.2 billion increased 57% since March 31, 2022 ◦ The increase was primari
Slide 14: GP Capital Solutions
GP Capital Solutions • AUM of $49.2 billion increased 19% since March 31, 2022 • FPAUM of $28.6 billion increased 21% since March 31, 2022 ◦ The increase in AUM and FPAUM was primarily driven by capital raised in Dyal Fund V • AUM Not Yet Paying Fees totaled $1.2 billion, reflecting expected annual
Slide 15: Real Estate Products
Real Estate Products • AUM of $23.6 billion increased 47% since March 31, 2022 ◦ The increase was primarily driven by capital raised in Fund VI and Net Lease Trust • FPAUM of $11.9 billion increased 29% since March 31, 2022 ◦ The increase was primarily driven by capital raised in Net Lease Trust and
Slide 16: Supplemental Information
Supplemental Information
Slide 17: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics As of March 31, 2023, the average maturity of the Company's outstanding notes is ~13 years Total Debt ($M) Available Liquidity ($M) $1,800 $350 BBB Rated by S&P and Fitch $350 $38 $400 $0.8B Available Liquidity $700 $759 2.9% Cost of Debt(1) Revolving Credit Facility R
Slide 18: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of March 31, 2023, AUM not yet paying fees totaled $11.7 billion, reflecting expected annual management fees of approximately $155 million once deployed (dollars in billions) $31.2 $144.4 $8.6 $23.6 $12.4 $9.9 $10.2 $0.2 $11.7 $2.9 $7.0 $113.3 $2.7 $1.2 $103.3 $91.6 $7.6 $49.2
Slide 19: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended March 31, 2023 Twelve Months Ended March 31, 2023 GP Capital GP Capital (dollars in millions) Direct Lending Solutions Real Estate Total Direct Lending Solutions Real Estate Total AUM Beginning Balance $ 68,607 $ 48,510 $ 21,085 $ 138,202 $ 44,775 $ 41,1
Slide 20: Appendix
Appendix
Slide 21: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except share and per share data) 1Q'23 1Q'22 1Q'23 1Q'22 Revenues Management fees, net (includes Part I Fees of $85,864, $46,739, $273,118 and $168,195) $ 358,825 $ 247,632 $ 1,322,799 $ 820,854 Administrative, transact
Slide 22: Non-GAAP Measures
Non-GAAP Measures Fee-Related Earnings, or FRE, and Fee-Related Earnings is a supplemental non-GAAP measure of our core operating performance used to make operating decisions and assess our Related Components core operating results, focusing on whether our core revenue streams, primarily consisting
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Quarter Ended Last Twelve Months (dollars in thousands) 1Q'23 1Q'22 1Q'23 Adj. 1Q'22 GAAP Net Income (Loss) Attributable to Class A Shares $ 8,317 $ (11,815) $ 10,843 $ (427,400) Net income (loss) attributable to noncontrolling interests 33,717 (11,101) 13,872 (1,437,116) In
Slide 24: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 1Q'23 1Q'22 1Q’23 Adj. 1Q'22 Weighted-Average Adjusted Shares Class A Shares(1) 445,452,642 406,180,833 Common Units and Vested Incentive Units 967,869,948 992,558,461 Total Weighted-Aver
Slide 25: Defined Terms
Defined Terms Assets Under Management or Refers to the assets that we manage, and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn AUM debt; (iii) uncalled capital commitments; (iv) total managed assets for certain Real Estate products; and (v) par value of colla
Slide 26: Defined Terms (cont’d)
Defined Terms (cont’d) Gross IRR Refers to an annualized since inception gross internal rate of return of cash flows to and from the product and the product’s residual value at the end of the measurement period. Gross IRRs are calculated before giving effect to management fees (including Part I Fees