Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q2 2024 Earnings Presentation
29 slides from Blue Owl Capital's earnings presentation, Aug 8, 2024
Slide 1: Blue Owl Capital Inc. Second Quarter 2024 Earnings
August 1, 2024 Blue Owl Capital Inc. Second Quarter 2024 Earnings
Slide 2: Disclosures
Disclosures About Blue Owl Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives. With over $192 billion in assets under management as of June 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 over $192 billion of assets under management, Blue Owl is a leading asset manager that is redefining alternatives. Investment Platforms Credit GP Strategic Capital Real Estate • Focused on lending to middle- and upper- • Provides innovative minority equity and • Flexible and b
Slide 5: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights • GAAP Net Income of $33.9 million, or $0.06 per basic and $0.06 per diluted Class A Share Financial Results • Fee-Related Earnings of $296.5 million, or $0.21 per Adjusted Share • Distributable Earnings of $273.0 million, or $0.19 per Adjusted Share • AUM of $192.2 bi
Slide 6: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 2Q'24 2Q'23 % Change 2Q'24 2Q'23 % Change GAAP Revenues Credit (including Part I Fees of $127,135, $90,853, $451,045 and $ 288,310 $ 216,542 33% $ 1,034,283 $ 785,293 32% $314,402) GP Strategic Ca
Slide 7: Historical Trends (GAAP)
Historical Trends (GAAP) • GAAP Management Fees of $1,710.2 million for the last twelve months, increased 21% compared to prior year • GAAP Consolidated Net Income of $394.8 million for the last twelve months, compared to $67.8 million in the prior year • GAAP Net Income Attributable to Class A Shar
Slide 8: 2Q'24 - LTM Earnings Growth
2Q'24 - LTM Earnings Growth 13th consecutive quarter of both FRE management fee and FRE sequential growth FRE Revenue FRE DE (dollars in millions) (dollars in millions) (dollars in millions) 25% 23% 19% Growth Growth Growth $1,888.1 $1,113.4 $1,004.9 $1,510.2 $902.2 $842.7 2Q'23 2Q'24 2Q'23 2Q'24 2Q
Slide 9: Non-GAAP Results (Unaudited)
Non-GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 2Q'24 2Q'23 % Change 2Q'24 2Q'23 % Change FRE Revenues Credit (including Part I Fees of $127,135, $90,853, $451,045 and $ 288,310 $ 216,542 33% $ 1,034,283 $ 785,293 32% $314,402) GP Strategic
Slide 10: Historical Trends (Non-GAAP)
Historical Trends (Non-GAAP) • FRE Management Fees of $1,752.9 million for the last twelve months, increased 21% compared to prior year • Fee-Related Earnings of $1,113.4 million for the last twelve months, increased 23% compared to prior year • Distributable Earnings of $1,004.9 million for the las
Slide 11: Assets Under Management
Assets Under Management • AUM of $192.2 billion, increased 28% since June 30, 2023 ◦ The increase was primarily driven by the Prima Acquisition and capital raised, change in debt and appreciation across the business • FPAUM of $121.5 billion, increased 30% since June 30, 2023 ◦ The increase was prim
Slide 12: Fundraising
Fundraising • Total Fundraise of $5.4 billion during the quarter was driven by $3.4 billion in Credit, $1.3 billion in GP Strategic Capital, and $0.7 billion in Real Estate • Private Wealth Fundraise of $3.2 billion during the quarter was primarily driven by products from the diversified and technol
Slide 13: Credit Platform
Credit Platform • AUM of $95.1 billion, increased 29% since June 30, 2023 ◦ The increase was primarily driven by capital raised in products from the diversified, technology and first lien lending strategies, and change in debt in products from the diversified lending strategy • FPAUM of $63.7 billio
Slide 14: GP Strategic Capital Platform
GP Strategic Capital Platform • AUM of $57.8 billion, increased 14% since June 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 $32.8 billion, increased 15% since June 30, 2023 ◦ The in
Slide 15: Real Estate Platform
Real Estate Platform • AUM of $39.2 billion, increased 58% since June 30, 2023 ◦ The increase was primarily driven by the Prima Acquisition and capital raised in our real estate investment trust and sixth vintage drawdown product • FPAUM of $25.0 billion, increased 91% since June 30, 2023 ◦ The incr
Slide 16: Supplemental Information
Supplemental Information
Slide 17: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics As of June 30, 2024, the average maturity of the Company's outstanding notes is ~11 years. Total Debt ($M) Available Liquidity ($M) $2,510 $60 Credit Ratings $350 BBB+ BBB $400 Fitch S&P $437 $700 $2.0B Available Liquidity $1,543 $1,000 $759 Revolving Credit Facility 3
Slide 18: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of June 30, 2024, AUM not yet paying fees totaled $15.9 billion, reflecting expected annual management fees of over $200 million once deployed. $44.2 $192.2 $9.9 $18.1 $39.2 $16.1 $10.6 $0.1 $15.9 $6.1 $4.4 $4.1 $0.8 $121.5 $10.9 $57.8 $25.0 $28.6 $32.8 $71.6 $95.1 $51.2 $63.7
Slide 19: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended June 30, 2024 Twelve Months Ended June 30, 2024 (dollars in millions) GP Strategic GP Strategic Credit Capital Real Estate Total Credit Capital Real Estate Total AUM Beginning Balance $ 91,289 $ 55,793 $ 27,238 $ 174,320 $ 73,793 $ 50,934 $ 24,826 $ 149,
Slide 20: Appendix
Appendix
Slide 21: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except share and per share data) 2Q'24 2Q'23 2Q'24 2Q'23 Revenues Management fees, net (includes Part I Fees of $129,442, $91,938, $459,147 and $318,710) $ 465,754 $ 371,829 $ 1,710,239 $ 1,410,303 Administrative, trans
Slide 22: GAAP Results Summary (Unaudited)
GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 GAAP Revenues Management Fees, Net $ 465,754 $ 447,898 $ 410,578 $ 386,009 $ 371,829 Administrative, Transaction and Other Fees 83,906 63,397 80,342 43,641 45,108 Performance Re
Slide 23: Non-GAAP Results Summary (Unaudited)
Non-GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 FRE Revenues FRE Management Fees, Net $ 476,414 $ 458,558 $ 421,238 $ 396,668 $ 381,599 FRE Administrative, Transaction and Other Fees 43,404 25,945 46,295 16,103 19,877 FRE
Slide 24: 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 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Quarter Ended Last Twelve Months (dollars in thousands) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 GAAP Net Income Attributable to Class A Shares $ 33,945 $ 25,091 $ 18,058 $ 15,109 $ 12,859 $ 92,203 $ 24,828 Net income attributable to noncontrolling interests 104,109 86,922
Slide 26: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Weighted-Average Adjusted Shares Class A Shares(1) 518,018,685 476,336,605 458,682,468 454,982,939 448,750,838 Common Units and Vested Incentive
Slide 27: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Income Before Income Taxes $ 156,251 $ 126,784 $ 84,306 $ 74,163 $ 39,441 $ 441,504 $ 69,689 GAAP Revenues $ 549,848 $ 513,340 $ 494,035 $ 429,65
Slide 28: 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 Real Estate products; and (v) par value of collat
Slide 29: Defined Terms (cont'd)
Defined Terms (cont’d) Net IRR Refers to an annualized since inception net 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. Net IRRs are calculated after giving effect to fees, as applicable, and all other expenses.