Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Investor Presentation (September 2021)
32 slides from Blue Owl Capital's investor presentation, September 2021
Slide 1: Blue Owl Investor Presentation
Blue Owl Investor Presentation September 2021
Slide 2: Disclosures
Disclosures Unless otherwise indicated, the Report Date referenced is 6/30/2021. Past performance is not a guide to future results and is not indicative of expected realized returns. Past credit, interest rate, and market conditions may not recur, and differing conditions may result in differing res
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: About Blue Owl
About Blue Owl Over $62 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 combination of Owl Rock and Dyal opportu
Slide 5: Blue Owl Overview
Blue Owl Overview The Direct Lending and GP Capital Solutions platforms provide investment strategies dedicated to private capital solutions Over $62 Billion of Assets Under Management Owl Rock Platform First Lien Dyal Capital Platform Lending $3.2 Opportunistic • A leading direct lending business L
Slide 6: Blue Owl Is Providing Services to An Expanding Private Markets Ecosystem
Blue Owl Is Providing Services to An Expanding Private Markets Ecosystem Private Capital AUM1 $ Trillions Private Equity $12.9 Private Debt CAGR: 12% Real Estate Infrastructure Natural Resources $7.2 $7.2 $6.1 CAGR: $5.3 16% $4.5 $4.2 $9.1 $3.8 $3.9 $3.0 $3.3 $2.7 $2.2 $2.3 $2.4 $1.7 $4.5 $4.4 $3.7
Slide 7: History of Direct Lending and GP Capital Solutions Businesses
History of Direct Lending and GP Capital Solutions Businesses Since inception, both Owl Rock and Dyal have provided clients access to risk-adjusted returns FLF* ORCC* ORCC II* ORTF* ORCC III ORO* ORDL Direct Lending ORCIC FLF II Owl Rock Inception 2010 2012 2015 2016 2018 2019 2020 2021 Blue BlueOwl
Slide 8: A Diversified and Global Client Base
A Diversified and Global Client Base Blue Owl’s client base is well diversified across institutional investors and wealth management firms Investor Base by Type & Geography 1 Rest of World 1% Blue Owl 2% EMEA 9% Institutional 74% North 24% Wealth America APAC Management 72% 18% 24% 21% 15% 13% 10% 6
Slide 9: Experienced Senior Leadership Team
Experienced Senior Leadership Team Doug Ostrover Marc Lipschultz Michael Rees Alan Kirshenbaum CEO Co-President Co-President CFO ▪ Co-Founder and Chief ▪ Co-Founder and Co- ▪ Co-Founder and Co- ▪ Chief Financial Officer of Executive Officer of Blue President of Blue Owl President of Blue Owl Blue Ow
Slide 10: A Business Built for Predictable, FRE-Centric Growth
A Business Built for Predictable, FRE-Centric Growth Market leading Permanent Capital base with approximately $56.9 billion in Permanent Capital AUM (97% of Management Fees from Permanent Capital1) Fee-Related Earnings drives 100%+ of DE2 Highly attractive, robust margins (62% FRE Margin)3 Industry
Slide 11: Blue Owl has a Highly Differentiated Financial Profile
Blue Owl has a Highly Differentiated Financial Profile Compares Favorably to Public Alternative Asset Management Peers Higher-Growth, Diversified Blue Owl FRE-Centric Alt. Managers Firms 2021 YTD FRE FRE-Centric 63% 100%+ as % of DE 58% Earnings1 Before Taxes ’21E -’23E Earnings 13% 10% 43% Annualiz
Slide 12: Strong Permanent Capital Profile Creates High Visibility Into Future Revenue Streams
Strong Permanent Capital Profile Creates High Visibility Into Future Revenue Streams Future Fundraising Will Add New Layers Onto Existing AUM and Fee Streams AUM by Duration Management Fees by Duration 5 or More Years, 7% 5 or More Managed Years, 3% Accounts, 2% Managed Accounts, <1% Permanent Perma
Slide 13: A Focused and Highly Visible Path For Meaningful Growth
A Focused and Highly Visible Path For Meaningful Growth 1 2 3 Deploy $8.5bn of AUM Not Dyal and Owl Rock Fee Step-Up – Private BDCs Yet Earning Fees Fundraising (Ongoing) Going Public (Already Raised) ~$120mn of annualized management fees once deployed 4 5 6 Retail Expansion into Raising Additional
Slide 14: Business Overviews
Business Overviews
Slide 15: Blue Owl Direct Lending Platform | Key Highlights
Blue Owl Direct Lending Platform | Key Highlights One of the largest direct lending platforms with strong performance and experienced leadership and investment teams • Robust proprietary deal flow driven by an extensive network of sponsors Scale $31.2B • Deep bench of 65+ experienced investment prof
Slide 16: Direct Lending Platform Breakdown
Direct Lending Platform Breakdown Complementary verticals that leverage existing origination and underwriting functions with a primary focus on private equity sponsored deals and other corporate solutions $31.2 Billion Assets Under Management1 Diversified Technology First Lien Opportunistic Lending
Slide 17: 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 $1.5 trillion of Private Equity Dry 411 Powder $3+ trillion of Private Markets 319 Dry Powder
Slide 18: Blue Owl GP Capital Solutions | Key Highlights
Blue Owl GP Capital Solutions | Key Highlights Blue Owl is a market leader in the GP Capital Solutions space • Strong and extensive relationships with scaled players across the alternative asset management ecosystem Scale $31.2B • Proven experience with over 60 equity and debt transactions Assets Un
Slide 19: GP Capital Solutions Platform Breakdown
GP Capital Solutions Platform Breakdown Complementary strategies providing a range of solutions to capital-constrained ecosystems $31.2 Billion Assets Under Management GP Minority Equity Professional Sports Co-Investments & GP Debt Financing Investments Minority Investments Structured Equity AUM $30
Slide 20: Blue Owl Has a Leading Competitive Position in GP Solutions With Room to Grow
Blue Owl Has a Leading Competitive Position in GP Solutions With Room to Grow In the context of the broader private markets industry, the major players across the GP Capital Solutions space constitute a relatively small percentage of the total opportunity set GP Minority Equity Solutions Investable
Slide 21: The Universe of Private Capital Managers Continues to Expand
The Universe of Private Capital Managers Continues to Expand Institutionalized Private Capital Managers (>$5 billion AUM) are expected to grow to ~$7.6 trillion of aggregate AUM by 20251 2021E 2025E 60 80-100 Firms Firms AUM of AUM of $20+ billion $20+ billion 120 Firms 150-180 Firms AUM of $10+ bil
Slide 22: Financial Information
Financial Information
Slide 23: Strong, Conservatively Capitalized Balance Sheet
Strong, Conservatively Capitalized Balance Sheet ~0.5x Net Debt to Annualized Adjusted EBITDA (in $mns) $700 $585 $16.0bn Corporate Revolving Market Capitalization Credit Facility $149 BBB Cash and Corporate Rated by Treasury S&P and Fitch $436 Unsecured Notes Available Liquidity Total Debt As of 6/
Slide 24: Blue Owl's Second Quarter 2021 Non-GAAP Results (Unaudited)
Blue Owl’s Second Quarter 2021 Non-GAAP Results (Unaudited)1 (Amounts in thousands, except per share data) Adjusted 2Q'21 2Q'21 2Q'20 2Q'21 YTD 2Q'20 YTD Adjusted Revenues Management fees, net (including BDC Part I Fees) $ 180,402 $ 142,135 $ 36,837 236,848 $ 73,684 Administrative, transaction and o
Slide 25: Appendix
Appendix
Slide 26: Blue Owl's Second Quarter 2021 GAAP Results (Unaudited)
Blue Owl’s Second Quarter 2021 GAAP Results (Unaudited) ($ in thousands, except per share data) 2Q'21 2Q'20 2Q'21 YTD 2Q'20 YTD Revenues Management fees, net (including BDC Part I Fees) $ 142,135 $ 36,837 $ 236,848 $ 73,684 Administrative, transaction and other fees 37,125 3,661 50,636 16,082 Total
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in thousands) Adjusted 2Q'21 2Q'21 2Q'20 2Q'21 YTD 2Q'20 YTD GAAP Income (Loss) Before Income Taxes $ (1,616,539) $ (1,616,539) $ (13,352) $ (1,577,017) $ (21,373) Less: Net (income) loss allocated to noncontrolling interests included in Fee-Related Earnings (1,852) (1,85
Slide 28: Non-GAAP Measures
Non-GAAP Measures Fee-Related Earnings and Fee-Related Earnings is a supplemental non-GAAP measure of operating performance used to make operating decisions Related Components and assess operating performance. Fee-Related Earnings excludes certain items that are required for the presentation of the
Slide 29: Non-GAAP Measures (cont'd)
Non-GAAP Measures (cont’d) Adjusted Fee-Related Earnings Adjusted Fee-Related Earnings and Adjusted Distributable Earnings are supplemental non-GAAP measures of operating and Adjusted Distributable performance that are determined on the same basis as Fee-Related Earnings and Distributable Earnings,
Slide 30: 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) AUM drawn and undrawn debt; and (iii) uncalled capital commitments. BDCs Refers to business development companies, as regulated under the Inv
Slide 31: 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, excluding cash). For other Direct Lending products, FPAUM is generally equal to NAV or investme
Slide 32: Blue Owl
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