Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — SPAC Merger (December 2020)
31 slides from Blue Owl Capital's SPAC merger presentation, December 2020
Slide 1: Blue Owl Overview
Blue Owl Overview December 2020
Slide 2: Disclaimers
Disclaimers This presentation (this “Investor Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between the Dyal Capital Partners (“Dyal”) division of Neuberger
Slide 3: Blue Owl: A Differentiated Alternative Investment Manager
Blue Owl: A Differentiated Alternative Investment Manager 2022E % FRE Market leading permanent capital base with approximately (% of FRE + Realized PRE) P $51bn in permanent capital AUM(1) 100% 82% 74% 71% 62% P Best in class FRE generation Blue Owl 2022E Pre-Tax Operating Margin(2) P Highly attract
Slide 4: Strategic Benefits of Blue Owl: A Leading Provider of GP Solutions
Strategic Benefits of Blue Owl: A Leading Provider of GP Solutions Blue Owl Direct Lending Platform GP Capital Solutions AUM: $23.7bn AUM: $23.3bn ▪ Founded in 2016 by Doug Ostrover, ▪ Founded in 2010 by Michael Rees Marc Lipschultz and Craig Packer ▪ $23.3bn in permanent capital ▪ $19.7bn in perman
Slide 5: Table of Contents
Table of Contents I. Blue Owl Platform Highlights II. Business Overviews III. Blue Owl Financial Highlights IV. Transaction Summary Appendix 5
Slide 6: I. Blue Owl Platform Highlights
I. Blue Owl Platform Highlights
Slide 7: Blue Owl is a Preeminent Provider of Private Market GP Solutions
Blue Owl is a Preeminent Provider of Private Market GP Solutions ✓ Deep relationships facilitate a differentiated ecosystem to deliver GP solutions BROAD RANGE OF CAPITAL SOLUTION STRATEGIES & EXTENSIVE NETWORK OF RELATIONSHIPS Portfolio Companies Fund Solutions GP Solutions Diversified First Lien T
Slide 8: Serving the Attractive Private Markets Ecosystem
Serving the Attractive Private Markets Ecosystem ✓ Exposure to attractive segment of secularly growing industry PRIVATE CAPITAL AUM(1) ($trn) Private Equity $12.9 Private Debt CAGR: Real Estate 12% Infrastructure Natural Resources $7.2 $7.2 $6.1 $5.3 CAGR: 12% $4.5 CAGR: $4.2 16% $9.1 $3.8 $3.9 $3.3
Slide 9: Attractive and Compelling Equity Story
Attractive and Compelling Equity Story Blue Owl in Context Innovative solutions platform primed to benefit from I % mgmt. fee strong growth in private alternatives industry revenue attrib.to 95% 95% 94% permanent capital: $1,250 $1,155 $956 II Best in class FRE generation and EBITDA margins $1,000 $
Slide 10: Superior Growth and Earnings Profile Relative to Peers
Superior Growth and Earnings Profile Relative to Peers ✓ Blue Owl’s FRE-focused earnings and leading growth profile clearly outpaces industry peers % FEE-RELATED EARNINGS vs. DE GROWTH 100% Blue Owl’s P Defining Attributes (2) Blue Owl ✓100% FRE ✓65% est. DE Growth % Fee-Related Earnings (“FRE”) (20
Slide 11: Blue Owl has a Highly Differentiated Financial Profile
Blue Owl has a Highly Differentiated Financial Profile ✓ Blue Owl compares favorably to public alternative asset management universe Higher-Growth, Diversified Alt. Blue Owl FRE-Centric Firms Managers ‘22 FRE ‘22E FRE ‘22 FRE FRE-Centricity 100% as % of DE as % of DE: 72% as % of DE: 57% ’20-’22 DE
Slide 12: II. Business Overviews
II. Business Overviews
Slide 13: Direct Lending | Key Highlights
Direct Lending | Key Highlights ✓ Blue Owl is one of the leading direct lending platforms managed by a seasoned executive team Scale ▪ Robust proprietary deal flow driven by an extensive network of sponsors ▪ Significant backing from highly sophisticated investors $23.7bn Assets Under Management ▪ D
Slide 14: Direct Lending | Platform Breakdown
Direct Lending | Platform Breakdown ✓ Complementary verticals that leverage existing origination and underwriting functions $23.7bn Assets Under Management Diversified First Lien Technology Opportunistic Lending Lending Lending Lending ORCC, ORCC II, First Lien Fund, Opportunistic Fund, Funds Tech.
Slide 15: GP Capital Solutions | Key Highlights
GP Capital Solutions | Key Highlights ✓ Blue Owl is a leading provider of capital solutions to private markets managers Size & Scale ▪ Strong and extensive relationships across the alternative asset management ecosystem ▪ Large base of stable capital facilitates partnership with leading alternative
Slide 16: GP Capital Solutions | Platform Breakdown
GP Capital Solutions | Platform Breakdown ✓ Complementary strategies providing a range of solutions to capital-constrained ecosystems EXISTING STRATEGIES NEWLY LAUNCHED STRATEGIES ALTERNATIVE MANAGER PRIVATE EQUITY CO-INVESTMENTS & PROFESSIONAL SPORTS GP STAKES GP FINANCING STRUCTURED EQUITY MINORIT
Slide 17: GP Capital Solutions | Leading Competitive Position
GP Capital Solutions | Leading Competitive Position ✓ Proven leader in providing capital solutions with emphasis on long-term partnerships and alignment of interests Proven Experience Stable Capital Strategic Partnerships Over 60 equity and debt transactions More than just a financial transaction; A
Slide 18: III. Blue Owl Financial Highlights
III. Blue Owl Financial Highlights
Slide 19: Blue Owl | Summary Combined Projections
Blue Owl | Summary Combined Projections Adjusted(1) Projections for Year Ending December 31, $ in millions 2020E 2021E 2022E 2023E 2024E 2025E Revenues Management Fee-Related Revenue(2) $668 $956 $1,155 $1,309 $1,664 $1,785 Expenses Compensation(3) $152 $238 $295 $352 $418 $469 G&A 91 93 70 67 78 91
Slide 20: Significant Earnings Power Embedded in Blue Owl Platform
Significant Earnings Power Embedded in Blue Owl Platform ✓ Deployment of capital already raised and contractual fee-rate increases creates significant earnings power BLUE OWL EARNINGS FROM AUM ALREADY RAISED(1) ($m) Reflects net impact from Dyal Fund V(3); first close occurred in November 2020 $602
Slide 21: Bridge to 2022E Earnings
Bridge to 2022E Earnings ✓ Earnings growth reflects the benefit of launch of Dyal Fund V and continued development of existing funds ILLUSTRATIVE BRIDGE TO 2022E EARNINGS ($m) EBITDA EBITDA EBITDA Margin: Margin: Margin: 63.7%(1) 65.3% 68.4% Reflects mgmt. fee increase to 1.50% Reflects Dyal Fund V
Slide 22: Blue Owl's High-Growth, FRE-Focused Earnings Profile
Blue Owl’s High-Growth, FRE-Focused Earnings Profile ✓ Highly-attractive business model focused on strong growth, FRE generation, and best-in-class margins (1) ORGANIC AUM GROWTH ($bn) TOTAL REVENUES ($m) Management Fee Revenue (%)(2) Total CAGR: 23.8% 100% 100% 100% 100% 100% 100% $137.2 $120.4 $1,
Slide 23: IV. Transaction Summary
IV. Transaction Summary
Slide 24: Senior Leadership
Senior Leadership Doug Ostrover Marc Lipschultz Michael Rees Alan Kirshenbaum CEO Co-President Co-President CFO ▪ Co-Founder and CEO of ▪ Co-Founder and President ▪ Managing Director and ▪ Chief Operating Officer & Owl Rock Capital Partners of Owl Rock Capital Head of Dyal Capital Chief Financial Of
Slide 25: Overview of Altimar Acquisition Corporation
Overview of Altimar Acquisition Corporation ✓ Altimar is sponsored by an affiliate of HPS Investment Partners (“HPS”), a natural partner for Blue Owl with a proven track record in the alternative asset management industry and experienced leadership ALTIMAR ACQUISITION CORPORATION HPS INVESTMENT PART
Slide 26: Transaction Summary
Transaction Summary KEY TRANSACTION TERMS SOURCES & USES ▪ Altimar Acquisition Corp. (“ATAC") is purchasing interests of Blue Sources ($m) $ % Owl at a pre-money equity valuation of approximately $12.15 billion SPAC Cash-in-Trust $275 2.2% ▪ Blue Owl equityholders will retain $10.7 billion in equity
Slide 27: Capital Structure & Dividend Policy Summary
Capital Structure & Dividend Policy Summary ✓ Blue Owl expects to maintain a conservative capital structure and an attractive dividend policy CAPITAL STRUCTURE DIVIDEND POLICY 0.5x Normal Target Range 1.0x CAGR: 18.7% $470 $421 $334 Net Debt / EBITDA 2021E 2022E 2023E Illustrative Dividends ($m)(1)
Slide 28: Governance Summary
Governance Summary CORPORATE STRUCTURE INITIAL BOARD COMPOSITION ▪ Up-C structure including PubCo and two newly-formed limited partnerships, Blue Owl and Blue Owl Carry ▪ SPAC shares, including those offered in the PIPE, represent ownership interest in PubCo 3 Independent Directors ▪ Customary TRA a
Slide 29: Appendix
Appendix
Slide 30: Peer Operating Benchmarking
Peer Operating Benchmarking ✓ Blue Owl is a clear positive outlier vis-à-vis other comparables Higher-Growth, FRE-Centric Firms Broadly Diversified, Public Alternative Firms Other Higher- U.S. Blue Growth, (1)(2) Div. Pub. Owl FRE-Centric Alts. Median Median AUM ($bn)(3) $47 $55 $73 $96 $72 $72 $179
Slide 31: Peer Valuation Benchmarking
Peer Valuation Benchmarking ✓ Given Blue Owl’s fundamentals, buyside will focus on higher-growth FRE-centric peers NTM P/E SELECT PUBLIC ALTERNATIVE ASSET MANAGEMENT TRADING METRICS 40x Equity % of Calendarized Calendarized Dividend Market Cap 52 Week P/E Multiples EV / EBITDA Multiples Yield 34.7x