Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q1 2022 Earnings Presentation
29 slides from Blue Owl Capital's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Earnings
Blue Owl Capital Inc. First Quarter 2022 Earnings May 5, 2022
Slide 2: Disclosures
Disclosures About Blue Owl Blue Owl is a global alternative asset manager with $102.0 billion of assets under management as of March 31, 2022. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Capital Solutions and Real Estate strategies on behal
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 With over $102 billion of assets under management, Blue Owl is a leading provider of private capital solutions Blue Owl Firm Overview A Solutions Provider Blue Owl’s complementary strategies allow for enhanced origination ▪ Blue Owl is an alternative asset manager opportunities and ac
Slide 5: Blue Owl Overview Investment Strategies
Blue Owl Overview The Owl Rock, Dyal Capital and Oak Street strategies provide investment strategies dedicated to private capital solutions Investment Strategies Direct Lending GP Capital Solutions Real Estate • A leading direct lending business with • A leading GP capital solutions • An industry-le
Slide 6: Blue Owl Assets Under Management
Blue Owl Assets Under Management Blue Owl is an alternative asset manager that provides investors access to Direct Lending, GP Capital Solutions and Real Estate strategies through a variety of products $102.0 billion of Assets Under Management GP Capital Solutions $41.2 $39.6B GP Minority $1.3B GP D
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 $85.6 billion in Permanent Capital AUM Permanent Capital generates 95% of FRE Management Fees Best in class Fee-Related Earnings
Slide 8: Blue Owl's GAAP Results (Unaudited)
Blue Owl’s GAAP Results (Unaudited) Three Months Ended, (amounts in thousands, except share and per share data) 1Q'22 4Q'21 3Q'21 2Q'21 1Q'21 Revenues Management fees, net (includes Part I Fees of $46,739, $41,724, $43,659, 36,073 and $ 247,632 $ 227,337 $ 203,750 $ 142,135 $ 94,713 $28,914) Adminis
Slide 9: Blue Owl's First Quarter 2022 Highlights - Annual Growth
Blue Owl’s First Quarter 2022 Highlights - Annual Growth Direct Lending FRE Management Fees ($m) FRE ($m) Gross Originations ($b) 256.6 4.9 171.4 th l th l o w ua ow ua th l ow ua Gr Ann Gr Ann Gr Ann % 3% 51 % 13 56 170.2 2.1 110.1 1Q'21 1Q'22 1Q'21 1Q'22 1Q'21 1Q'22 AUM ($b) FPAUM ($b) Retail Fund
Slide 10: Blue Owl's First Quarter 2022 Highlights - Other Metrics
Blue Owl’s First Quarter 2022 Highlights - Other Metrics Non-GAAP • FRE Revenues of $272.6 million Financial • FRE of $171.4 million, or $0.12 per Adjusted Share Measures • DE of $155.7 million, or $0.11 per Adjusted Share • AUM of $102.0 billion, up 8% since December 31, 2021 and up 76% since March
Slide 11: Blue Owl's Non-GAAP Results (Unaudited)
Blue Owl’s Non-GAAP Results (Unaudited) (amounts in thousands, except per share data) 1Q'22 4Q'21 3Q'21 Adjusted 2Q'21 FRE Revenues Management Fees, Net (including Part I Fees of $46,739, $41,724, $43,659 and $36,073) $ 256,554 $ 236,267 $ 204,720 $ 180,402 Administrative, Transaction and Other Fees
Slide 12: Key Metrics
Key Metrics • Total Fundraise of $3.9 billion was comprised of $1.7 billion of Institutional & Other fundraise, and $2.2 billion of Retail fundraise ◦ Continued to show strong growth in Retail fundraise, with an increase of $0.6 billion, or 36% compared to 4Q'21, and 172% compared to 1Q'21 • FRE Man
Slide 13: Assets Under Management
Assets Under Management • AUM of $102.0 billion increased 8% during the quarter and 76% since March 31, 2021 ◦ The increase in AUM during the first quarter was primarily driven by capital raised in Direct Lending and GP Capital Solutions and deployment activity in Direct Lending • FPAUM of $65.6 bil
Slide 14: Blue Owl AUM and FRE Management Fees
Blue Owl AUM and FRE 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 FRE Management Fees by Duration 5% $1.2 $15.2 Permanent Capital Permanent Capital 5 or
Slide 15: Direct Lending Products
Direct Lending Products • FRE Revenues decreased to $148.2 million for the first quarter, as a result of lower transaction fees, partially offset by strong growth in FRE Management Fees of 11%. FRE Revenues increased 43% when compared to 1Q'21 • AUM of $44.8 billion increased 14% during the quarter
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 Market Landscape Direct Lending Originations (dollars in billions) $2.3 trillion of $3+ trill
Slide 17: FRE Management Fees Increase in a Rising Rate Environment
FRE Management Fees Increase in a Rising Rate Environment Direct Lending BDCs Fund Level % Impact to Annual Change in Interest Rates Net Income Impact Part I Fee Impact FRE Revenue Up 300 basis points $350.4 $46.8 4% + Up 200 basis points $181.4 $24.0 2% + Up 100 basis points $12.2 $1.3 0% Up 50 bas
Slide 18: GP Capital Solutions Products
GP Capital Solutions Products • FRE Revenues decreased to $107.3 million for the first quarter, primarily reflecting a net decrease in catch-up fees of $20.8 million. Excluding catch-up fees, FRE Management Fees increased 12% compared to 4Q'21. FRE Revenues increased 40% when compared to 1Q'21 • AUM
Slide 19: Real Estate Products
Real Estate Products • FRE Revenues were $17.2 million for the first quarter • AUM of $16.1 billion increased 5% during the quarter ◦ The increase in AUM during the first quarter was driven by appreciation of the funds’ portfolio and capital raised across the strategy • FPAUM of $9.3 billion increas
Slide 20: Supplemental Information
Supplemental Information
Slide 21: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended March 31, 2022 Twelve Months Ended March 31, 2022 GP Capital GP Capital (dollars in millions) Direct Lending Solutions Real Estate Total Direct Lending Solutions Real Estate Total AUM Beginning Balance $ 39,227 $ 39,906 $ 15,362 $ 94,495 $ 27,777 $ 30,19
Slide 22: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of March 31, 2022, AUM not yet paying fees totaled $7.7 billion, reflecting expected annual FRE management fees of approximately $105 million once deployed (dollars in billions) $22.1 $102.0 $5.1 $16.1 $11.4 $6.7 $5.6 $0.2 $7.7 $1.6 $5.4 $80.1 $1.1 $65.6 $5.4 $0.7 $73.4 $41.2
Slide 23: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics As of March 31, 2022, the average maturity of our outstanding debt is ~14 years Total Debt ($m) Available Liquidity ($m) BBB $1,450 Rated by S&P and Fitch $700 $186 $900M+ Available Liquidity $400 $715 $350 Revolving Credit Facility 2051 Unsecured Notes Cash and Corpor
Slide 24: Appendix
Appendix
Slide 25: Non-GAAP Measures
Non-GAAP Measures Fee-Related Earnings, or FRE, and Fee-Related Earnings is a supplemental non-GAAP measure of operating performance used to make operating decisions and assess operating Related Components performance. Fee-Related Earnings excludes certain items that are required for the presentatio
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Reconciliations (amounts in thousands, except per share data) 1Q'22 4Q'21 3Q'21 Adjusted 2Q'21 Adjusted 1Q'21 GAAP Loss Before Income Taxes $ (27,954) $ (35,222) $ (255,238) $ (1,616,539) $ 39,522 Net loss (income) allocated to noncontrolling interests included in F
Slide 27: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Non-GAAP (dollars in thousands) Reconciliations 1Q'22 4Q'21 3Q'21 Adjusted 2Q'21 Adjusted 1Q'21 GAAP Revenues $ 275,977 $ 288,519 $ 247,875 $ 179,260 $ 108,224 Plus: Incremental revenues assuming the Business Combination closed on 1/1/21 — — — 41,381 81,993 Strategi
Slide 28: 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 AUM undrawn debt; (iii) uncalled capital commitments; and (iv) total managed assets for certain Real Estate products. our BDCs Refers to our
Slide 29: 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