Blue Owl Capital Corporation · NYSE:OBDC
Blue Owl Capital — SPAC Merger (December 2020)
32 slides from Blue Owl Capital's SPAC merger presentation, Dec 23, 2020
Slide 1: Blue Owl Overview December 2020
Exhibit 99.3 Blue Owl Overview December 2020Exhibit 99.3 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 (% of FRE + Realized PRE) Market leading permanent capital base with approximately (1) P 100% $51bn in permanent capital AUM 82% 74% 71% 62% Best in class FRE generation P Blue Owl (2) 2022E Pre-Tax Operating Margin 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 GP Capital Solutions Direct Lending Platform AUM: $23.3bn AUM: $23.7bn § Founded in 2010 by Michael Rees § Founded in 2016 by Doug Ostrover, Marc Lipschultz and Craig Packer § $23.3bn in permanent capital § $19.7bn in perman
Slide 5: Table of Contents
Table of Contents I. Blue Owl Platform Highlights II. Business Overviews III. Blue Owl Financial Highlights IV. Transaction Summary Appendix 5Table of Contents I. Blue Owl Platform Highlights II. Business Overviews III. Blue Owl Financial Highlights IV. Transaction Summary Appendix 5
Slide 6: I. Blue Owl Platform Highlights
I. Blue Owl Platform HighlightsI. Blue Owl Platform Highlights
Slide 7: Blue Owl is a Preeminent Provider of Private Market GP Solutions
Blue Owl is a Preeminent Provider of Private Market GP Solutions ü Deep relationships facilitate a differentiated ecosystem to deliver GP solutions BROAD RANGE OF CAPITAL SOLUTION STRATEGIES & EXTENSIVE NETWORK OF RELATIONSHIPS Portfolio Companies Fund Solutions GP Solutions Diversified First Lien T
Slide 8: Serving the Attractive Private Markets Ecosystem
Serving the Attractive Private Markets Ecosystem ü Exposure to attractive segment of secularly growing industry (1) PRIVATE CAPITAL AUM ($trn) Private Equity $12.9 Private Debt CAGR: 12% Real Estate Infrastructure Natural Resources $7.2 $7.2 $6.1 $5.3 CAGR: 12% $4.5 CAGR: $4.2 16% $9.1 $3.9 $3.8 $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 Best in class FRE generation and EBITDA margins II $1,000 $
Slide 10: Superior Growth and Earnings Profile Relative to Peers
Superior Growth and Earnings Profile Relative to Peers ü Blue Owl’s FRE-focused earnings and leading growth profile clearly outpaces industry peers % FEE-RELATED EARNINGS vs. DE GROWTH Blue Owl’s 100% P Defining Attributes (2) Blue Owl ü100% FRE ü65% est. DE Growth (2020 – 2022 CAGR) 75% ü92% Perman
Slide 11: Blue Owl has a Highly Differentiated Financial Profile
Blue Owl has a Highly Differentiated Financial Profile ü Blue Owl compares favorably to public alternative asset management universe Higher-Growth, Diversified Alt. Blue Owl FRE-Centric Firms Managers ‘22E FRE ‘22 FRE ‘22 FRE FRE-Centricity 100% as % of DE: 72% as % of DE: 57% as % of DE ’20-’22 DE
Slide 12: II. Business Overviews
II. Business OverviewsII. Business Overviews
Slide 13: Direct Lending | Key Highlights
Direct Lending | Key Highlights ü 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 $23.7bn § Significant backing from highly sophisticated investors Assets Under Management § D
Slide 14: Direct Lending | Platform Breakdown
Direct Lending | Platform Breakdown ü 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 ü 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 $23.3bn § Large base of stable capital facilitates partnership with leading alte
Slide 16: GP Capital Solutions | Platform Breakdown
GP Capital Solutions | Platform Breakdown ü 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 ü 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 HighlightsIII. Blue Owl Financial Highlights
Slide 19: Blue Owl | Summary Combined Projections
Blue Owl | Summary Combined Projections (1) Projections for Year Ending December 31, Adjusted $ in millions 2020E 2021E 2022E 2023E 2024E 2025E Revenues (2) $668 $956 $1,155 $1,309 $1,664 $1,785 Management Fee-Related Revenue Expenses (3) $152 $238 $295 $352 $418 $469 Compensation G&A 91 93 70 67 78
Slide 20: Significant Earnings Power Embedded in Blue Owl Platform
Significant Earnings Power Embedded in Blue Owl Platform ü Deployment of capital already raised and contractual fee-rate increases creates significant earnings power (1) BLUE OWL EARNINGS FROM AUM ALREADY RAISED ($m) Reflects net impact from (3) Dyal Fund V ; first close occurred in November 2020 $6
Slide 21: Bridge to 2022E Earnings
Bridge to 2022E Earnings ü Earnings growth reflects the benefit of launch of Dyal Fund V and continued development of existing funds ILLUSTRATIVE BRIDGE TO 2022E EARNINGS ($m) EBITDA EBITDA EBITDA Margin: Margin: Margin: (1) 63.7% 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 ü Highly-attractive business model focused on strong growth, FRE generation, and best-in-class margins (1) ORGANIC AUM GROWTH ($bn) TOTAL REVENUES ($m) (2) Management Fee Revenue (%) 100% 100% 100% 100% 100% 100% Total CAGR: 23.8% $137.2 $120.4 $1
Slide 23: IV. Transaction Summary
IV. Transaction SummaryIV. Transaction Summary
Slide 24: Senior Leadership
Senior Leadership Doug Ostrover Marc Lipschultz Michael Rees Alan Kirshenbaum CEO Co-President Co-President CFO § Co-Founder and CEO of § Co-Founder and President § Managing Director and § Chief Operating Officer & Owl Rock Capital Partners of Owl Rock Capital Head of Dyal Capital Chief Financial Of
Slide 25: Overview of Altimar Acquisition Corporation
Overview of Altimar Acquisition Corporation ü Altimar is sponsored by an affiliate of HPS Investment Partners (“HPS”), a natural partner for Blue Owl with a proven track record in the alternative asset management industry and experienced leadership (1) ALTIMAR ACQUISITION CORPORATION HPS INVESTMENT
Slide 26: Transaction Summary
Transaction Summary KEY TRANSACTION TERMS SOURCES & USES § Altimar Acquisition Corp. (“ATAC ) is purchasing interests of Blue Sources ($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 ü Blue Owl expects to maintain a conservative capital structure and an attractive dividend policy CAPITAL STRUCTURE DIVIDEND POLICY Normal Target Range 0.5x 1.0x CAGR: 18.7% $470 $421 $334 Net Debt / EBITDA 2021E 2022E 2023E (1) Illustrative Dividends ($m)
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 Independent Directors 3 ownership interest in PubCo § Customary TRA a
Slide 29: Appendix
AppendixAppendix
Slide 30: High-Quality Portfolio Outperforms Relative to Peers
High-Quality Portfolio Outperforms Relative to Peers (1) Non-Accruals FV / Par <80% % of Portfolio Pre-2017 Change Total # of % of % of Total # of % of Rated Below Vintage as % % of in NAV Assets Portfolio Portfolio Portfolio Portfolio Portfolio Internal of Debt Portfolio Debt / Since (2) (3) Compan
Slide 31: Peer Operating Benchmarking
Peer Operating Benchmarking ü Blue Owl is a clear positive outlier vis-à-vis other comparables Higher-Growth, FRE-Centric Firms Broadly Diversified, Public Alternative Firms Other U.S. Higher- Blue Growth, Div. Pub. (1)(2) Alts. FRE-Centric Owl Median Median (3) AUM ($bn) $47 $55 $73 $96 $72 $72 $17
Slide 32: Peer Valuation Benchmarking
Peer Valuation Benchmarking ü 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 EV / EBITDA Multiples Market Cap 52 Week P/E Multiples Yield Compan