Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q3 2024 Earnings Presentation
31 slides from Blue Owl Capital's earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024 Earnings
October 31, 2024 Blue Owl Capital Inc. Third Quarter 2024 Earnings
Slide 2: Disclosures
Disclosures About Blue Owl Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives. With $235 billion in assets under management as of September 30, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong perm
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: Blue Owl Overview: Investment Platforms
Blue Owl Overview With $235 billion of assets under management, Blue Owl is a leading asset manager that is redefining alternatives. Investment Platforms Credit GP Strategic Capital Real Estate • Direct lending strategy focused on lending to • Provides innovative minority equity and • Net lease stra
Slide 5: Management Fee Growth Since Becoming a Public Company
Management Fee Growth Since Becoming a Public Company (dollars in millions) $500.0 0% y 20 fN earl th o $450.0 o w ee Gr m e nt F $400.0 ge M ana FRE $350.0 $300.0 $250.0 $200.0 $150.0 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Management Fees (GAAP) FRE Mana
Slide 6: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights • GAAP Net Income of $29.8 million, or $0.05 per basic and $0.04 per diluted Class A Share Financial Results • Fee-Related Earnings of $326.9 million, or $0.22 per Adjusted Share • Distributable Earnings of $301.0 million, or $0.20 per Adjusted Share • AUM of $234.6 bil
Slide 7: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 3Q'24 3Q'23 % Change 3Q'24 3Q'23 % Change GAAP Revenues Credit (including Part I Fees of $138,300, $95,794, $493,551 and $ 325,210 $ 225,887 44% $ 1,133,606 $ 841,480 35% $348,550) GP Strategic Ca
Slide 8: Historical Trends (GAAP)
Historical Trends (GAAP) • GAAP Management Fees of $1,847.5 million for the last twelve months, increased 27% compared to prior year • GAAP Consolidated Net Income of $430.6 million for the last twelve months, compared to $141.3 million in the prior year • GAAP Net Income Attributable to Class A Sha
Slide 9: 3Q'24 - LTM Earnings Growth
3Q'24 - LTM Earnings Growth 14th consecutive quarter of both FRE management fee and FRE sequential growth FRE Revenue FRE DE (dollars in millions) (dollars in millions) (dollars in millions) 31% 27% 22% Growth Growth Growth $2,043.7 $1,076.4 $1,192.4 $880.6 $1,560.0 $940.2 3Q'23 3Q'24 3Q'23 3Q'24 3Q
Slide 10: Non-GAAP Results (Unaudited)
Non-GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 3Q'24 3Q'23 % Change 3Q'24 3Q'23 % Change FRE Revenues Credit (including Part I Fees of $138,300, $95,794, $493,551 and $ 325,210 $ 225,887 44% $ 1,133,606 $ 841,480 35% $348,550) GP Strategic
Slide 11: Historical Trends (Non-GAAP)
Historical Trends (Non-GAAP) • FRE Management Fees of $1,890.6 million for the last twelve months, increased 26% compared to prior year • Fee-Related Earnings of $1,192.4 million for the last twelve months, increased 27% compared to prior year • Distributable Earnings of $1,076.4 million for the las
Slide 12: Assets Under Management
Assets Under Management • AUM of $234.6 billion, increased 50% since September 30, 2023 ◦ The increase was primarily driven by the Kuvare, Prima and Atalaya Acquisitions, as well as capital raised, change in debt and appreciation across the business • FPAUM of $154.2 billion, increased 59% since Sep
Slide 13: Fundraising
Fundraising • Total Fundraise of $7.9 billion during the quarter was driven by $3.5 billion in GP Strategic Capital, $3.1 billion in Credit and $1.3 billion in Real Estate • Private Wealth Fundraise of $4.2 billion during the quarter was primarily driven by products from the GP minority stakes strat
Slide 14: Credit Platform
Credit Platform • AUM of $128.4 billion, increased 62% since September 30, 2023 ◦ The increase was primarily driven by the Kuvare and Atalaya Acquisitions, as well as capital raised and change in debt in products from the direct lending strategy. • FPAUM of $89.3 billion, increased 64% since Septemb
Slide 15: GP Strategic Capital Platform
GP Strategic Capital Platform • AUM of $62.0 billion, increased 21% since September 30, 2023 ◦ The increase was primarily driven by capital raised in our sixth flagship minority equity stakes product and appreciation across the platform • FPAUM of $35.1 billion, increased 23% since September 30, 202
Slide 16: Real Estate Platform
Real Estate Platform • AUM of $44.1 billion, increased 70% since September 30, 2023 ◦ The increase was primarily driven by the Prima and Kuvare Acquisitions, as well as capital raised in our real estate investment trust and sixth vintage drawdown product • FPAUM of $29.8 billion, increased 111% sinc
Slide 17: Supplemental Information
Supplemental Information
Slide 18: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics As of September 30, 2024, the average maturity of the Company's outstanding notes is ~11 years. Total Debt ($M) Available Liquidity ($M) $2,600 $90 $60 Credit Ratings $350 $116 BBB+ BBB $400 Fitch S&P $700 $1.7B Available Liquidity $1,000 $759 $1,628 Revolving Credit F
Slide 19: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of September 30, 2024, AUM not yet paying fees totaled $21.7 billion, reflecting expected annual management fees of over $260 million once deployed. (dollars in billions) $46.2 $234.6 $9.5 $18.5 $44.1 $12.5 $18.2 $0.1 $21.7 $6.8 $5.6 $4.7 $1.6 $154.2 $15.3 $62.0 $29.8 $28.6 $3
Slide 20: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended September 30, 2024 Twelve Months Ended September 30, 2024 (dollars in millions) GP Strategic GP Strategic Credit Capital Real Estate Total Credit Capital Real Estate Total AUM Beginning Balance $ 95,104 $ 57,844 $ 39,208 $ 192,156 $ 79,527 $ 51,398 $ 25,
Slide 21: Appendix
Appendix
Slide 22: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except share and per share data) 3Q'24 3Q'23 3Q'24 3Q'23 Revenues Management fees, net (includes Part I Fees of $140,676, $97,621, $502,202 and $353,523) $ 523,309 $ 386,009 $ 1,847,539 $ 1,457,935 Administrative, trans
Slide 23: GAAP Results Summary (Unaudited)
GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 GAAP Revenues Management Fees, Net $ 523,309 $ 465,754 $ 447,898 $ 410,578 $ 386,009 Administrative, Transaction and Other Fees 77,289 83,906 63,397 80,342 43,641 Performance Re
Slide 24: Non-GAAP Results Summary (Unaudited)
Non-GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 FRE Revenues FRE Management Fees, Net $ 534,425 $ 476,414 $ 458,558 $ 421,238 $ 396,668 FRE Administrative, Transaction and Other Fees 33,622 43,404 25,945 46,295 16,103 FRE
Slide 25: Non-GAAP Measures
Non-GAAP Measures GAAP Margin Calculated as income before income taxes, divided by total revenues. Fee-Related Earnings, or FRE, and Fee-Related Earnings is a supplemental non-GAAP measure of our core operating performance used to make operating decisions and assess our Related Components core opera
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Quarter Ended Last Twelve Months (dollars in thousands) 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 3Q'24 3Q'23 GAAP Net Income Attributable to Class A Shares $ 29,805 $ 33,945 $ 25,091 $ 18,058 $ 15,109 $ 106,899 $ 37,877 Net income attributable to noncontrolling interests 69,519 104,109
Slide 27: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 3Q'24 3Q'23 Weighted-Average Adjusted Shares Class A Shares(1) 563,549,711 518,018,685 476,336,605 458,682,468 454,982,939 Common Units and Vested Incentive
Slide 28: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 3Q'24 3Q'23 Income Before Income Taxes $ 112,120 $ 156,251 $ 126,784 $ 84,306 $ 74,163 $ 479,461 $ 157,945 GAAP Revenues $ 600,878 $ 549,848 $ 513,340 $ 494,
Slide 29: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) (dollars in thousands) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 GAAP Management Fees $142,135 $203,750 $227,337 $247,632 $284,325 $338,377 $341,272 $358,825 $371,829 $386,009 $410,578 $447,898 $465,754 $523,309 Strategic Re
Slide 30: Defined Terms
Defined Terms Assets Under Management or AUM Refers to the assets that we manage, and is generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; (iii) uncalled capital commitments; (iv) total managed assets for certain Credit and Real Estate products; and (v) par valu
Slide 31: Defined Terms (cont'd)
Defined Terms (cont’d) Institutional Fundraise Includes insurance, internal fundraise and GP commitments. Kuvare Acquisition Refers to the acquisition of Kuvare Insurance Services LP (dba Kuvare Asset Management), completed on July 1, 2024. Net IRR Refers to an annualized since inception net interna