Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q2 2023 Earnings Presentation
28 slides from Blue Owl Capital's earnings presentation, Aug 1, 2023
Slide 1: Blue Owl Capital Inc. Second Quarter 2023 Earnings
August 1, 2023 Blue Owl Capital Inc. Second Quarter 2023 Earnings
Slide 2: Disclosures
Disclosures About Blue Owl Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives. With $150 billion in assets under management1, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we p
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 $150 billion of assets under management, Blue Owl is a leading provider of private capital solutions Investment Platforms Credit GP Strategic Capital Real Estate • A leading credit business with $73.8 billion in • A leading GP strategic capital provider to • A leading private
Slide 5: Blue Owl's Second Quarter 2023 Highlights - Key Metrics
Blue Owl’s Second Quarter 2023 Highlights - Key Metrics (dollars in billions) AUM FPAUM Permanent Capital $149.6 $93.6 $118.6 26% 24% 21% $119.1 $95.5 $77.5 2Q'22 2Q'23 2Q’22 2Q’23 2Q’22 2Q’23 Total Fundraise Private Wealth Fundraise Institutional Fundraise $20.4 $9.2 $11.2 10% 26% 19% $8.9 $8.4 $17
Slide 6: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights • GAAP Net Income of $12.9 million, or $0.03 per basic and $0.02 per diluted Class A Share Financial Results • Fee-Related Earnings of $244.6 million, or $0.17 per Adjusted Share • Distributable Earnings of $227.0 million, or $0.16 per Adjusted Share • AUM of $149.6 bi
Slide 7: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 2Q'23 2Q'22 % Change 2Q'23 2Q'22 % Change GAAP Revenues Credit (including Part I Fees of $90,853, $45,531, $314,402 and $ 216,542 $ 145,710 49% $ 785,293 $ 513,273 53% $171,200) GP Strategic Capit
Slide 8: Historical Trends (GAAP)
Historical Trends (GAAP) • GAAP Management Fees of $371.8 million for the quarter increased 31% compared to 2Q'22 ◦ GAAP Management Fees of $1,410.3 million for the last twelve months increased 46% compared to prior year • GAAP Consolidated Net Income (Loss) of $34.0 million for the quarter compared
Slide 9: Non-GAAP Results (Unaudited)
Non-GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 2Q'23 2Q'22 % Change 2Q'23 2Q'22 % Change FRE Revenues Credit (including Part I Fees of $90,853, $45,531, $314,402 and $ 216,542 $ 145,710 49% $ 785,291 $ 513,273 53% $171,200) GP Strategic Ca
Slide 10: Historical Trends (Non-GAAP)
Historical Trends (Non-GAAP) • FRE Management Fees of $381.6 million for the quarter increased 30% compared to 2Q'22 ◦ FRE Management Fees of $1,449.4 million for the last twelve months increased 46% compared to prior year • Fee-Related Earnings of $244.6 million for the quarter increased 24% compar
Slide 11: Assets Under Management
Assets Under Management • AUM of $149.6 billion increased 26% since June 30, 2022 ◦ The increase was primarily driven by capital raised across the business and deployment in Credit • FPAUM of $93.6 billion increased 21% since June 30, 2022 ◦ The increase was primarily driven by capital raised across
Slide 12: Fundraising
Fundraising • Total Fundraise of $2.9 billion during the quarter was driven by $1.5 billion in Credit, $1.1 billion in Real Estate and $0.2 billion in GP Strategic Capital • Private Wealth Fundraise of $1.8 billion during the quarter was primarily driven by products from diversified and technology l
Slide 13: Credit Platform
Credit Platform • AUM of $73.8 billion increased 30% since June 30, 2022 ◦ The increase was primarily driven by capital raised in products from diversified and technology lending strategies • FPAUM of $52.1 billion increased 26% since June 30, 2022 ◦ The increase was primarily driven by capital rais
Slide 14: GP Strategic Capital Platform
GP Strategic Capital Platform • AUM of $50.9 billion increased 12% since June 30, 2022 • FPAUM of $28.5 billion increased 7% since June 30, 2022 ◦ The increase in AUM and FPAUM was primarily driven by capital raised in Blue Owl GP Stakes V • AUM Not Yet Paying Fees totaled $1.1 billion, reflecting e
Slide 15: Real Estate Platform
Real Estate Platform • AUM of $24.8 billion increased 49% since June 30, 2022 ◦ The increase was primarily driven by capital raised in Blue Owl Real Estate Fund VI ("OREF VI") and Blue Owl Real Estate Net Lease Trust ("ORENT") • FPAUM of $13.1 billion increased 39% since June 30, 2022 ◦ The increase
Slide 16: Supplemental Information
Supplemental Information
Slide 17: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics As of June 30, 2023, the average maturity of the Company's outstanding notes is ~13 years Total Debt ($M) Available Liquidity ($M) $1,790 $280 $41 BBB $60 Rated by S&P and Fitch $350 $400 $1.3B Available Liquidity $700 $759 $1,263 3.0% Revolving Credit Facility Cost of
Slide 18: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of June 30, 2023, AUM not yet paying fees totaled $12.0 billion, reflecting expected annual management fees of approximately $170 million once deployed $35.6 $149.6 $8.8 $24.8 $15.9 $8.4 $10.9 $0.2 $12.0 $5.5 $114.0 $2.8 $2.7 $1.1 $105.6 $50.9 $93.6 $8.1 $13.1 $93.6 $28.6 $28.
Slide 19: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended June 30, 2023 Twelve Months Ended June 30, 2023 (dollars in millions) GP Strategic GP Strategic Credit Capital Real Estate Total Credit Capital Real Estate Total AUM Beginning Balance $ 71,617 $ 49,167 $ 23,590 $ 144,374 $ 56,827 $ 45,674 $ 16,639 $ 119,
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'23 2Q'22 2Q'23 2Q'22 Revenues Management fees, net (includes Part I Fees of $91,938, $46,346, $318,710 and $178,468) $ 371,829 $ 284,325 $ 1,410,303 $ 963,044 Administrative, transact
Slide 22: GAAP Results Summary (Unaudited)
GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 2Q'23 1Q’23 4Q'22 3Q'22 2Q'22 GAAP Revenues Management Fees, Net $ 371,829 $ 358,825 $ 341,272 $ 338,377 $ 284,325 Administrative, Transaction and Other Fees 45,108 31,655 42,020 32,609 42,921 Realized Perfo
Slide 23: Non-GAAP Results Summary (Unaudited)
Non-GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 2Q'23 1Q’23 4Q'22 3Q'22 2Q'22 FRE Revenues FRE Management Fees, Net $ 381,599 $ 368,594 $ 351,041 $ 348,147 $ 293,247 FRE Administrative, Transaction and Other Fees 19,877 8,809 17,317 14,826 24,564 FRE
Slide 24: Non-GAAP Measures
Non-GAAP Measures 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 operating results, focusing on whether our core revenue streams, primarily consisting
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Quarter Ended Last Twelve Months (dollars in thousands) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 2Q'23 2Q'22 GAAP Net Income (Loss) Attributable to Class A Shares $ 12,859 $ 8,317 $ 1,592 $ 2,060 $ (1,126) $ 24,828 $ (66,182) Net income (loss) attributable to noncontrolling interests 2
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'23 1Q'23 4Q'22 3Q'22 2Q'22 2Q'23 2Q'22 Weighted-Average Adjusted Shares Class A Shares(1) 448,750,838 445,452,642 441,185,492 430,734,524 411,790,776 Common Units and Vested Incentive
Slide 27: Defined Terms
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; (iv) total managed assets for certain Real Estate products; and (v) par value of colla
Slide 28: Defined Terms (cont'd)
Defined Terms (cont’d) Partner Manager Refers to alternative asset management firms in which the GP Strategic Capital products invest. Permanent Capital Refers to AUM in products that do not have ordinary redemption provisions or a requirement to exit investments and return the proceeds to investors