Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q1 2024 Earnings Presentation
28 slides from Blue Owl Capital's earnings presentation, May 2, 2024
Slide 1: Blue Owl Capital Inc. First Quarter 2024 Earnings
May 2, 2024 Blue Owl Capital Inc. First 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 $174 billion in assets under management as of March 31, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong per
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 $174 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 be
Slide 5: First Quarter 2024 Highlights
First Quarter 2024 Highlights • GAAP Net Income of $25.1 million, or $0.05 per basic and $0.04 per diluted Class A Share Financial Results • Fee-Related Earnings of $289.7 million, or $0.20 per Adjusted Share • Distributable Earnings of $240.1 million, or $0.17 per Adjusted Share • AUM of $174.3 bil
Slide 6: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 1Q'24 1Q'23 % Change 1Q'24 1Q'23 % Change GAAP Revenues Credit (including Part I Fees of $118,043, $84,856, $414,763 and $ 270,801 $ 208,188 30% $ 962,515 $ 714,461 35% $269,080) GP Strategic Capi
Slide 7: Historical Trends (GAAP)
Historical Trends (GAAP) • GAAP Management Fees of $1,616.3 million for the last twelve months, increased 22% compared to prior year • GAAP Consolidated Net Income of $290.8 million for the last twelve months, compared to $24.7 million in the prior year • GAAP Net Income Attributable to Class A Shar
Slide 8: 1Q'24 - LTM Earnings Growth
1Q’24 - LTM Earnings Growth 12th consecutive quarter of both FRE management fee and FRE sequential growth FRE Revenue FRE DE (dollars in millions) (dollars in millions) (dollars in millions) 24% 24% 20% Growth Growth Growth $1,769.6 $1,061.5 $1,426.5 $958.9 $854.6 $796.1 1Q'23 1Q'24 1Q'23 1Q'24 1Q'2
Slide 9: Non-GAAP Results (Unaudited)
Non-GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 1Q'24 1Q'23 % Change 1Q'24 1Q'23 % Change FRE Revenues Credit (including Part I Fees of $118,043, $84,856, $414,763 and $ 270,801 $ 208,188 30% $ 962,515 $ 714,461 35% $269,080) GP Strategic C
Slide 10: Historical Trends (Non-GAAP)
Historical Trends (Non-GAAP) • FRE Management Fees of $1,658.1 million for the last twelve months, increased 22% compared to prior year • Fee-Related Earnings of $1,061.5 million for the last twelve months, increased 24% compared to prior year • Distributable Earnings of $958.9 million for the last
Slide 11: Assets Under Management
Assets Under Management • AUM of $174.3 billion, increased 21% since March 31, 2023 ◦ The increase was primarily driven by capital raised, change in debt and appreciation across the business • FPAUM of $105.4 billion, increased 15% since March 31, 2023 ◦ The increase was primarily driven by capital
Slide 12: Fundraising
Fundraising • Total Fundraise of $4.7 billion during the quarter was driven by $3.0 billion in Credit, $1.0 billion in Real Estate and $0.7 billion in GP Strategic Capital • Private Wealth Fundraise of $2.4 billion during the quarter was primarily driven by products from the diversified lending stra
Slide 13: Credit Platform
Credit Platform • AUM of $91.3 billion, increased 27% since March 31, 2023 ◦ The increase was primarily driven by capital raised in products from diversified, technology and first lien lending strategies • FPAUM of $58.8 billion, increased 15% since March 31, 2023 ◦ The increase was primarily driven
Slide 14: GP Strategic Capital Platform
GP Strategic Capital Platform • AUM of $55.8 billion, increased 13% since March 31, 2023 ◦ The increase was primarily driven by appreciation across the platform and capital raised in our mid-cap minority equity stakes product • FPAUM of $31.8 billion, increased 11% since March 31, 2023 ◦ The increas
Slide 15: Real Estate Platform
Real Estate Platform • AUM of $27.2 billion, increased 15% since March 31, 2023 ◦ The increase was primarily driven by capital raised in our sixth vintage drawdown product and our real estate investment trust • FPAUM of $14.9 billion, increased 25% since March 31, 2023 ◦ The increase was primarily d
Slide 16: Supplemental Information
Supplemental Information
Slide 17: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics As of March 31, 2024, the average maturity of the Company's outstanding notes is ~12 years. In April 2024, the Company issued 10-year unsecured debt of $750 million, due 2034 with 6.250% coupon. Total Debt ($M) Available Liquidity ($M) $595 Credit Ratings $60 BBB+ BBB
Slide 18: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of March 31, 2024, AUM not yet paying fees totaled $16.8 billion, reflecting expected annual management fees of over $240 million once deployed $42.0 $174.3 $9.4 $27.2 $17.4 $10.1 $15.2 $0.2 $16.8 $5.8 $132.3 $2.9 $4.1 $122.2 $55.8 $0.8 $105.4 $13.1 $14.9 $105.4 $28.6 $31.8 $9
Slide 19: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended March 31, 2024 Twelve Months Ended March 31, 2024 (dollars in millions) GP Strategic GP Strategic Credit Capital Real Estate Total Credit Capital Real Estate Total AUM Beginning Balance $ 84,632 $ 54,199 $ 26,856 $ 165,687 $ 71,617 $ 49,167 $ 23,590 $ 14
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) 1Q'24 1Q'23 1Q'24 1Q'23 Revenues Management fees, net (includes Part I Fees of $120,161, $85,864, $421,643 and $273,118) $ 447,898 $ 358,825 $ 1,616,314 $ 1,322,799 Administrative, trans
Slide 22: GAAP Results Summary (Unaudited)
GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 GAAP Revenues Management Fees, Net $ 447,898 $ 410,578 $ 386,009 $ 371,829 $ 358,825 Administrative, Transaction and Other Fees 63,397 80,342 43,641 45,108 31,655 Performance Re
Slide 23: Non-GAAP Results Summary (Unaudited)
Non-GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 FRE Revenues FRE Management Fees, Net $ 458,558 $ 421,238 $ 396,668 $ 381,599 $ 368,594 FRE Administrative, Transaction and Other Fees 25,945 46,295 16,103 19,877 8,809 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) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 1Q'24 1Q'23 GAAP Net Income Attributable to Class A Shares $ 25,091 $ 18,058 $ 15,109 $ 12,859 $ 8,317 $ 71,117 $ 10,843 Net income attributable to noncontrolling interests 86,922 63,134 48
Slide 26: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 1Q'24 1Q'23 Weighted-Average Adjusted Shares Class A Shares(1) 476,336,605 458,682,468 454,982,939 448,750,838 445,452,642 Common Units and Vested Incentive
Slide 27: 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 28: 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.