Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q2 2021 Earnings Presentation
25 slides from Blue Owl Capital's earnings presentation, Aug 10, 2021
Slide 1: Blue Owl Capital Inc. Reports Second Quarter 2021 Results
Blue Owl Capital Inc. Reports Second Quarter 2021 Results New York, New York, August 10, 2021 – Blue Owl Capital Inc. (“Blue Owl”) (NYSE:OWL) today reported its financial results for the second quarter ended June 30, 2021. GAAP net loss attributable to Blue Owl Capital Inc. was $(397.2) million, or
Slide 2: Blue Owl Capital Inc. Second Quarter 2021 Earnings
Blue Owl Capital Inc. Second Quarter 2021 Earnings August 10, 2021
Slide 3: About Blue Owl and Forward-Looking Statements
Blue Owl Capital Inc. Reports Second Quarter 2021 Results 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
Slide 4: Non-GAAP Financial Measures; Other Financial and Operational Data
Blue Owl Capital Inc. Reports Second Quarter 2021 Results 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”) a
Slide 5: 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 6: Blue Owl Overview: Over $62 Billion of Assets Under Management
Blue Owl Overview The Owl Rock and Dyal Capital 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 Lending $1.9 •
Slide 7: History of Owl Rock & Dyal | Divisions of Blue Owl
History of Owl Rock & Dyal | Divisions of Blue Owl Since inception, both Owl Rock and Dyal have provided clients access to risk-adjusted returns FLF* ORCC* ORCC II* ORTF* ORCC III ORO* ORDL ORCIC FLF II Owl Rock Inception 2010 2012 2015 2016 2018 2019 2020 2021 Blue BlueOwl Owl Capital Capital Dyal
Slide 8: 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 $56.9 billion in Permanent Capital AUM Best in class Fee-Related Earnings generation Highly attractive, robust profit margins In
Slide 9: Blue Owl's Second Quarter 2021 GAAP Results (Unaudited)
Blue Owl’s Second Quarter 2021 GAAP Results (Unaudited) ($ 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 10: Blue Owl's Second Quarter 2021 Highlights
Blue Owl’s Second Quarter 2021 Highlights • Adjusted Revenues1 of $209.8 million Financial • Adjusted Fee-Related Earnings (“FRE”)1 of $130.1 million, or $0.10 per Adjusted Share Measures • Adjusted Distributable Earnings (“DE”)1 of $108.4 million, or $0.09 per adjusted share • Assets Under Manageme
Slide 11: 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 12: Assets Under Management
Assets Under Management • AUM of $62.4 billion increased 8% over the prior quarter and increased 17% since December 31, 2020 • The increase in AUM during the second quarter was primarily driven by debt deployment in Direct Lending, portfolio appreciation in GP Capital Solutions, and new capital comm
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 $1.1 <1% $4.4 Permanent 3% Permanent Capital Capital 5 or More
Slide 14: Direct Lending Products
Direct Lending Products • Adjusted Revenues increased to $134.5 million for the second quarter, primarily reflecting ongoing capital raising and deployment, the removal of fee waivers for ORCC, and higher administrative, transaction and other fees • AUM of $31.2 billion increased 12% from the prior
Slide 15: GP Capital Solutions Products
GP Capital Solutions Products • Adjusted Revenues of $75.3 million reflect results assuming the Business Combination closed on April 1, 2021 • AUM of $31.2 billion increased 3% from the prior quarter and 19% from December 31, 2020, driven by appreciation of the funds’ portfolio and capital raised ac
Slide 16: Supplemental Information
Supplemental Information
Slide 17: AUM and FPAUM Rollforward
AUM and FPAUM Rollforward Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 GP Capital GP Capital ($ in millions) Direct Lending Solutions Total Direct Lending Solutions Total AUM Beginning Balance $ 27,777 $ 30,196 $ 57,973 $ 27,101 $ 26,220 $ 53,321 New capital raised 749 481 1,230 9
Slide 18: Fee Paying to Asset Under Management Bridge
Fee Paying to Asset Under Management Bridge As of June 30, 2021, AUM not yet paying fees totaled $8.5 billion, reflecting annual management fees of approximately $120 million once deployed $ Billions 70 $6.0 $62.4 60 $5.1 $8.5 50 $42.8 40 30 20 10 0 Total FPAUM AUM Not Yet Paying Fees Fee Exempt Cha
Slide 19: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics SHAREHOLDERS’ TOTAL DEBT ($m) AVAILABLE LIQUIDITY ($m) EQUITY $700 $16.0bn Market Cap $585 $149 BBB Rated by S&P and Fitch $436 $585mm Available Liquidity Unsecured Notes Available Liquidity Corporate Revolving Credit Facility Cash and Corporate Treasury 19
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Measures
Non-GAAP Measures Fee-Related Earnings and Fee-Related Earnings is a supplemental non-GAAP measure of operating performance used to make operating decisions Related Components and assess operating performance. Fee-Related Earnings excludes certain items that are required for the presentation of the
Slide 22: Non-GAAP Measures (cont'd)
Non-GAAP Measures (cont’d) Adjusted Fee-Related Earnings Adjusted Fee-Related Earnings and Adjusted Distributable Earnings are supplemental non-GAAP measures of operating and Adjusted Distributable performance that are determined on the same basis as Fee-Related Earnings and Distributable Earnings,
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ 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 24: 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. BDCs Refers to business development companies, as regulated under the Inv
Slide 25: 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