Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q3 2021 Earnings Presentation
26 slides from Blue Owl Capital's earnings presentation, Nov 9, 2021
Slide 1: Blue Owl Capital Inc. Reports Third Quarter 2021 Results
Blue Owl Capital Inc. Reports Third Quarter 2021 Results New York, New York, November 9, 2021 – Blue Owl Capital Inc. (“Blue Owl”) (NYSE:OWL) today reported its financial results for the third quarter ended September 30, 2021. GAAP net loss attributable to Blue Owl Capital Inc. was $53.3 million, or
Slide 2: Blue Owl Capital Inc. Third Quarter 2021 Earnings
Blue Owl Capital Inc. Third Quarter 2021 Earnings November 9, 2021
Slide 3: Disclosures
Disclosures About Blue Owl Blue Owl is an alternative asset manager that provides investors access to Direct Lending and GP Capital Solutions strategies through a variety of products. The firm’s breadth of offerings and permanent capital base enables it to offer a differentiated, holistic platform o
Slide 4: 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 5: About Blue Owl
About Blue Owl Over $70 billion of assets under management, Blue Owl is a leading provider of private capital solutions FIRM OVERVIEW A Solutions Provider ▪ Blue Owl was formed by the strategic Blue Owl’s complementary platforms allow for enhanced origination opportunities and access to unique, prop
Slide 6: Blue Owl Overview: Over $70 billion of Assets Under Management
Blue Owl Overview The Owl Rock and Dyal Capital platforms provide investment strategies dedicated to private capital solutions Over $70 billion of Assets Under Management Owl Rock Platform Dyal Capital Platform First Lien Opportunistic Lending $3.7 Lending $2.0 • A leading GP solutions provider to •
Slide 7: Blue Owl: A Leading Next Generation Alternative Asset Manager
Blue Owl: A Leading Next Generation Alternative Asset Manager A Business Built for Predictable, FRE Centric Growth Market leading Permanent Capital base with approximately $64.4 billion in Permanent Capital AUM Fee-Related Earnings drives 100%+ of DE Highly attractive, robust profit margins Industry
Slide 8: Oak Street Transaction Summary
Oak Street Transaction Summary • Blue Owl has agreed to acquire Oak Street, a leading real estate private equity firm with approximately $12.4 billion of assets under management. Oak Street primarily focuses on triple-net lease sale-leaseback transactions. • Purchase price of $950 million is expecte
Slide 9: Blue Owl’s GAAP Results (Unaudited)
Blue Owl’s GAAP Results (Unaudited) ($ in thousands, except per share data) 3Q'21 3Q'20 3Q'21YTD 3Q'20YTD Revenues Management fees, net (includes Part I Fees of $43,659, $2,701, $108,646 and $9,052) $ 203,750 $ 39,146 $ 440,598 $ 112,830 Administrative, transaction and other fees 44,125 14,897 94,76
Slide 10: Blue Owl’s Third Quarter 2021 Highlights
Blue Owl’s Third Quarter 2021 Highlights Non-GAAP • Adjusted Revenues of $235.7 million Financial • Fee-Related Earnings (“FRE”) of $141.9 million, or $0.11 per Adjusted Share Measures • Distributable Earnings (“DE”) of $142.8 million, or $0.11 per Adjusted Share • Assets Under Management (“AUM”) of
Slide 11: Blue Owl’s Non-GAAP Results (Unaudited)
Blue Owl’s Non-GAAP Results (Unaudited) (Amounts in thousands, except per share data) 3Q'21 Adjusted 2Q'21 2Q'21 Adjusted Revenues Management fees, net (including Part I Fees of $43,659, $36,073 and $36,073) $ 204,720 $ 180,402 $ 142,135 Adjusted Administrative, transaction and other fees 31,012 29,
Slide 12: Assets Under Management
Assets Under Management • AUM of $70.5 billion, increased 13% during the quarter and 32% since December 31, 2020 • The increase in AUM during the third quarter was primarily driven by robust deployment activity in Direct Lending, portfolio appreciation in GP Capital Solutions, and new capital commit
Slide 13: Blue Owl AUM and Management Fees
Blue Owl AUM and Management Fees The permanency and duration of the products that we manage are a differentiator in our industry and an indicator of the stability of our future revenue streams AUM by Duration Management Fees by Duration 2% <1% $5.0 $1.1 Permanent Permanent Capital Capital 5 or More
Slide 14: Direct Lending Products
Direct Lending Products • Adjusted Revenues increased $9.5 million to $144.0 million for the third quarter, primarily reflecting ongoing capital raising and deployment • AUM of $34.6 billion increased 11% from the prior quarter and 28% from December 31, 2020, driven by capital raised across the plat
Slide 15: Direct Lending Continues to Expand Faster Than the Larger Alternatives Industry
Direct Lending Continues to Expand Faster Than the Larger Alternatives Industry In the context of the broader private markets industry, Direct Lending constitutes a relatively small but growing market share Market Landscape Direct Lending Gross Originations $ Billions $1.5 trillion of $3+ trillion o
Slide 16: GP Capital Solutions Products
GP Capital Solutions Products • Adjusted Revenues increased $16.4 million, primarily reflecting ongoing capital raising • AUM of $35.9 billion increased 15% from the prior quarter and 37% from December 31, 2020, driven by appreciation of the funds’ portfolio and capital raised across the platform •
Slide 17: Supplemental Information
Supplemental Information
Slide 18: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 GP Capital GP Capital ($ in millions) Direct Lending Solutions Total Direct Lending Solutions Total AUM Beginning Balance $ 31,156 $ 31,211 $ 62,367 $ 27,101 $ 26,220 $ 53,321 New capital raised 724
Slide 19: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of September 30, 2021, AUM not yet paying fees totaled $9.0 billion, reflecting expected annual management fees of approximately $140 million once deployed $ Billions $9.1 $70.5 $5.4 $9.0 $47.0 FPAUM AUM Not Yet Paying Fee-Exempt AUM Change in Value AUM Fees 19
Slide 20: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics Subsequent to quarter end, the Company issued 30 year unsecured debt of $350 million, due 2051. Total Debt ($m) Available Liquidity ($m) Shareholders’ Equity $700 $20.6B $581 Market Cap $150 BBB Rated by S&P and Fitch $581M $431 Available Liquidity 10 Year Unsecured No
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Measures
Non-GAAP Measures Fee-Related Earnings and Related Fee-Related Earnings is a supplemental non-GAAP measure of operating performance used to make operating decisions and assess Components operating performance. Fee-Related Earnings excludes certain items that are required for the presentation of resu
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Reconciliations ($ in thousands, except per share data) 3Q'21 Adjusted 2Q'21 2Q'21 3Q'21 + Adjusted 2Q'21 GAAP Loss Before Income Taxes $ (255,238) $ (1,616,539) $ (1,616,539) $ (1,871,777) Less: Net (income) loss allocated to noncontrolling interests included in Fe
Slide 24: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Non-GAAP ($ in thousands) Reconciliations 3Q'21 Adjusted 2Q'21 2Q'21 3Q'21 + Adjusted 2Q'21 GAAP Revenues $ 247,875 $ 179,260 $ 179,260 $ 427,135 Plus: Incremental revenues assuming the Business Combination closed on 4/1/21 — 41,381 — 41,381 Plus: Strategic Revenue-
Slide 25: Defined Terms
Defined Terms Assets Under Management or Refers to the assets that the Company manages, and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn AUM and undrawn debt; and (iii) uncalled capital commitments. our BDCs Refers to business development companies, as regulated under th
Slide 26: Defined Terms (cont’d)
Defined Terms (cont’d) Fee-Paying AUM or FPAUM Refers to the AUM on which management fees are earned. For the Company's BDCs, FPAUM is generally equal to total assets (including assets acquired with debt, but excluding cash). For the Company's other Direct Lending products, FPAUM is generally equal