Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q4 2021 Earnings Presentation
27 slides from Blue Owl Capital's earnings presentation, Feb 17, 2022
Slide 1: Blue Owl Capital Inc. Reports Fourth Quarter 2021 Results
1 Blue Owl Capital Inc. Reports Fourth Quarter 2021 Results New York, New York, February 17, 2022 – Blue Owl Capital Inc. (“Blue Owl”) (NYSE:OWL) today reported its financial results for the fourth quarter ended December 31, 2021. GAAP net income attributable to Blue Owl Capital Inc. was $82 thousan
Slide 2: Blue Owl Capital Inc. Fourth Quarter 2021 Earnings
Blue Owl Capital Inc. Fourth Quarter 2021 Earnings February 17, 2022
Slide 3: About Blue Owl; Forward-Looking Statements
3 About Blue Owl Blue Owl is a global alternative asset manager with $94.5 billion of assets under management as of December 31, 2021. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Capital Solutions and Real Estate strategies on behalf of Ins
Slide 4: Non-GAAP Financial Measures; Other Financial and Operational Data
4 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 financial measure
Slide 5: Complementary platforms allow enhanced origination opportunities and proprietary deal flow
5 Blue Owl’s complementary platforms allow for enhanced origination opportunities and access to unique, proprietary deal flow • Owl Rock is a leading capital provider to middle- and upper- middle-market businesses with approximately 600 sponsor relationships • Dyal Capital is a leading capital provi
Slide 6: Blue Owl Overview
6All data as of December 31, 2021. Past performance is not indicative of future results. Real Estate Blue Owl Overview The Owl Rock, Dyal Capital and Oak Street platforms provide investment strategies dedicated to private capital solutions • A leading GP capital solutions provider to private market
Slide 7: Blue Owl Assets Under Management
7 $39.2 $39.9 $15.4 $94.5 billion of Assets Under Management Blue Owl Capital 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 Direct Lending GP Ca
Slide 8: A Leading Next Generation Alternative Asset Manager
8 Blue Owl: A Leading Next Generation Alternative Asset Manager A Business Built for Predictable, FRE Centric Growth Market leading Permanent Capital base with approximately $78.8 billion in Permanent Capital AUM Permanent Capital generates 98% of Management Fees Conservative capital structure Highl
Slide 9: GAAP Statements of Operations
9 Three Months Ended December 31, Year Ended December 31, (amounts in thousands, except share and per share data) 2021 2020 2021 2020 Revenues Management fees, net (includes Part I Fees of $41,724, $25,352, $150,370 and $34,404) $ 227,337 $ 82,076 $ 667,935 $ 194,906 Administrative, transaction and
Slide 10: Blue Owl's Fourth Quarter 2021 Highlights
10For information on and reconciliation of the Company's non-GAAP measures, please see slides 23 to 25. • Oak Street acquisition closed in 4Q'21 • Issued 30-year unsecured debt on October 7, 2021 of $350.0 million, due 2051 with 4.125% coupon. Subsequent to year end, issued $400.0 million 10-year un
Slide 11: Blue Owl's Non-GAAP Results
11 For information on and reconciliation of the Company's non-GAAP measures, please see slides 23 to 25. Adjusted 2Q'21 includes the results of Dyal Capital as if the Business Combination had closed on April 1, 2021; comparability to prior and future periods may be limited. FRE Revenues up 17% FRE u
Slide 12: Assets Under Management and Fee-Paying AUM
12Figures may not sum due to rounding. Assets Under Management AUM Fee-Paying AUM Permanent Capital Direct Lending GP Capital Solutions (dollars in billions) 58.0 62.4 70.5 94.5 27.8 31.2 34.6 39.2 30.2 31.2 35.9 39.9 15.4 1Q'21 2Q'21 3Q'21 4Q'21 40.1 42.9 47.0 61.4 21.5 24.2 27.2 32.0 18.6 18.7 19.
Slide 13: Retail Fundraise and FRE
13 Figures may not sum due to rounding. For information on and reconciliation of the Company's non-GAAP measures, please see slides 23 to 25. Includes the results of Dyal Capital as if the Business Combination had closed on January 1, 2021; comparability to prior and future periods may be limited. •
Slide 14: Blue Owl AUM and Management Fees
14 Blue Owl AUM and 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 Management Fees by Duration $11.0B AUM Not Yet Paying Fees ~$140M of Annual Management F
Slide 15: Direct Lending Products
15 • FRE Revenues increased to $158.4 million for the fourth quarter, primarily reflecting ongoing capital raising and deployment • AUM of $39.2 billion increased 13% from the prior quarter and 45% from December 31, 2020, driven by capital raised and robust capital deployment activity • FPAUM of $32
Slide 16: Market Landscape: Direct Lending Continues to Expand
16 40 47 52 94 99 125 156 201 263 327 418 486 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Market Landscape Direct Lending Continues to Expand Faster Than the Larger Alternatives Industry (dollars in billions) 2.1 5.1 8.8 7.6 0.6 3.2 3.0 5.1 1Q'21 2Q'21 3Q'21 4Q'21 $2.3 trillion of Pr
Slide 17: GP Capital Solutions Products
17 GP Capital Solutions Products • FRE Revenues increased to $116.5 million for the fourth quarter, primarily reflecting ongoing capital raising and deployment • AUM of $39.9 billion increased 11% from the prior quarter and 52% from December 31, 2020, driven by appreciation of the funds’ portfolio a
Slide 18: Supplemental Information
Supplemental Information
Slide 19: AUM and FPAUM Rollforwards
19 AUM and FPAUM Rollforwards Three Months Ended December 31, 2021 Year Ended December 31, 2021 (dollars in millions) Direct Lending GP Capital Solutions Real Estate Total Direct Lending GP Capital Solutions Real Estate Total AUM Beginning Balance $ 34,577 $ 35,940 $ — $ 70,517 $ 27,101 $ 26,220 $ —
Slide 20: FPAUM to AUM Bridge
20 $61.4 $94.5 $61.4 $72.4 $78.1 $32.0 $6.1 $39.2 $21.2 $2.6 $4.6 $11.6 $39.9$8.2 $2.3 $4.7 $15.4 $11.0 $5.7 $16.3 Direct Lending GP Capital Solutions Real Estate FPAUM AUM Not Yet Paying Fees Fee-Exempt AUM Net Appreciation and Leverage AUM FPAUM to AUM Bridge As of December 31, 2021, AUM not yet p
Slide 21: Supplemental Liquidity Metrics
21 BBB Rated by S&P and Fitch $20.9B Market Cap $531M Available Liquidity Total Debt ($m) Available Liquidity ($m) Shareholders’ Equity Supplemental Liquidity Metrics $1,203 $700 $350 $153 2051 Unsecured Notes 2031 Unsecured Notes Revolving Credit Facility 79D0E6 2B6DB6 $44 $487 Cash and Corporate T
Slide 22: Appendix
Appendix
Slide 23: Non-GAAP Measures: Fee-Related Earnings and Related Components
23 Non-GAAP Measures Fee-Related Earnings and Related Components Fee-Related Earnings is a supplemental non-GAAP measure of operating performance used to make operating decisions and assess operating performance. Fee-Related Earnings excludes certain items that are required for the presentation of r
Slide 24: Non-GAAP Reconciliations
24 Non-GAAP Reconciliations(amounts in thousands, except per share data) 4Q'21 3Q'21 Adjusted 2Q'21 2Q'21 Adjusted 1Q'21 GAAP Loss Before Income Taxes $ (35,222) $ (255,238) $ (1,616,539) $ (1,616,539) $ 39,522 Less: Net (income) loss allocated to noncontrolling interests included in Fee-Related Ear
Slide 25: Non-GAAP Reconciliations
25 Non-GAAP Reconciliations(dollars in thousands) 4Q'21 3Q'21 Adjusted 2Q'21 2Q'21 GAAP Revenues $ 288,519 $ 247,875 $ 179,260 $ 179,260 Plus: Incremental revenues assuming the Business Combination closed on 4/1/21 — — 41,381 — Plus: Strategic Revenue-Share Purchase consideration amortization 8,922
Slide 26: Defined Terms
26 Defined Terms Assets Under Management or AUM Refers to the assets that we manage, and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; (iii) uncalled capital commitments; and (iv) total managed assets for certain Real Estate products. our BDCs Refers to
Slide 27: Defined Terms (cont'd)
27 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 F