Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Investor Presentation (November 2021)
30 slides from Blue Owl Capital's investor presentation, November 2021
Slide 1: Blue Owl Investor Presentation
Blue Owl Investor Presentation November 2021
Slide 2: Disclosures
Disclosures About Blue Owl Blue Owl Capital Inc. ("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 different
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 $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 5: Blue Owl Overview
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 6: 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 7: 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 $12.9 Private Equity Private Debt Real Estate $8.6 Infrastructure CAGR: 17% $7.1 Natural Resources $6.1 : 13 % CAGR $5.1 CAGR: $4.6 11% $4.2 $9.1 $3.8 $3.9 $3.3 $2.7 $2.9 $2.3 $2.5 $2.2 $5.3 $1.
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 retail / high net worth investors Investor Base by Type & Geography Rest of World1% EMEA 9% North 27% APAC America 17% 73% 21% 16% 13% 8% 6% 5% 2% 2% 1 Retail / HNW Public Pension Corpo
Slide 9: A Business Built for Predictable, FRE-Centric Growth
A Business Built for Predictable, FRE-Centric Growth Market leading Permanent Capital base with approximately $64.4 billion in Permanent Capital AUM (97% of Management Fees from Permanent Capital1) Fee-Related Earnings drives 100% of DE2 Highly attractive, robust margins (61% FRE Margin)3 Industry l
Slide 10: 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, FRE-Centric Diversified Blue Owl Alt. Manager Firms 2021 YTD FRE FRE-Centric 100%+ as % of DE 61% 54% Earnings1 Before Taxes '21E - '23E Earnings 46% Annualized 13% 1
Slide 11: 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 2% <1% $5.0 $1.1 Permanent Permanent Capital Capital 5 or More 5 or More Years Years Managed Manag
Slide 12: A Focused and Highly Visible Path For Meaningful Growth
A Focused and Highly Visible Path For Meaningful Growth 1 2 3 Deploy $9.0B of AUM Dyal and Owl Rock Fee Step-Up – Listing Not Yet Earning Fees Fundraising Private BDCs1 (Already Raised) (Ongoing) ~$140M of annualized management fees once deployed 4 5 6 Retail Expansion Raising Additional into Wireho
Slide 13: Business Overviews
Business Overviews
Slide 14: 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 Scale $34.6B sponsors Assets Under Management • Deep bench of 75+ exp
Slide 15: 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 $34.6 Billion Assets Under Management Diversified Technology First Lien Opportunistic Lending L
Slide 16: 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 411 $1.5 trillion of Private Equity Dry Powder 319 $3+ trillion of Private Markets Dry Powder
Slide 17: 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 $35.9B • Proven experience with over 60 equity and debt transactions Assets Un
Slide 18: GP Capital Solutions Platform Breakdown
GP Capital Solutions Platform Breakdown Complementary strategies providing a range of solutions to capital-constrained ecosystems $35.9 Billion Assets Under Management GP Minority Equity Professional Sports GP Debt Financing Investments Minority Investments AUM1 $34.7 billion $1.0 billion $0.2 billi
Slide 19: 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 20: 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 21: Financial Information
Financial Information
Slide 22: 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 23: 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 24: Appendix
Appendix
Slide 25: 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 26: 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 27: 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 28: 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 29: 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
Slide 30: Blue Owl
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