Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Q3 2023 Earnings Presentation
29 slides from Blue Owl Capital's earnings presentation, Nov 9, 2023
Slide 1: Blue Owl Capital Inc. Third Quarter 2023 Earnings
November 2, 2023 Blue Owl Capital Inc. Third Quarter 2023 Earnings
Slide 2: Disclosures
Disclosures About Blue Owl Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives. With $157 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 $157 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 $79.5 billion in • A leading GP strategic capital provider to • A leading private
Slide 5: Management Fee Growth Since Becoming a Public Company
Management Fee Growth Since Becoming a Public Company (dollars in millions) $400.0 >40% R ates h r owt nu al G $350.0 nd An ou C omp $300.0 $250.0 $200.0 $150.0 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Management Fees (GAAP) FRE Management Fees For information on and reconciliatio
Slide 6: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights • GAAP Net Income of $15.1 million, or $0.03 per basic and $0.03 per diluted Class A Share Financial Results • Fee-Related Earnings of $247.8 million, or $0.17 per Adjusted Share • Distributable Earnings of $229.5 million, or $0.16 per Adjusted Share • AUM of $156.9 bil
Slide 7: GAAP Results (Unaudited)
GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 3Q'23 3Q'22 % Change 3Q'23 3Q'22 % Change GAAP Revenues Credit (including Part I Fees of $95,794, $61,646, $348,550 and $ 225,887 $ 169,700 33% $ 841,480 $ 570,004 48% $193,994) GP Strategic Capit
Slide 8: Historical Trends (GAAP)
Historical Trends (GAAP) • GAAP Management Fees of $1,457.9 million for the last twelve months increased 33% compared to prior year • GAAP Consolidated Net Income (Loss) of $141.3 million for the last twelve months compared to $(55.4) million in the prior year • GAAP Net Income (Loss) Attributable t
Slide 9: Non-GAAP Results (Unaudited)
Non-GAAP Results (Unaudited) Quarter Ended Last Twelve Months (dollars in thousands, except per share data) 3Q'23 3Q'22 % Change 3Q'23 3Q'22 % Change FRE Revenues Credit (including Part I Fees of $95,794, $61,646, $348,550 and $ 225,887 $ 169,700 33% $ 841,480 $ 570,004 48% $193,994) GP Strategic Ca
Slide 10: Historical Trends (Non-GAAP)
Historical Trends (Non-GAAP) • FRE Management Fees of $1,497.9 million for the last twelve months increased 32% compared to prior year • Fee-Related Earnings of $940.2 million for the last twelve months increased 26% compared to prior year • Distributable Earnings of $880.6 million for the last twel
Slide 11: Assets Under Management
Assets Under Management • AUM of $156.9 billion increased 19% since September 30, 2022 ◦ The increase was primarily driven by capital raised across the business and deployment in Credit • FPAUM of $97.0 billion increased 15% since September 30, 2022 ◦ The increase was primarily driven by capital rai
Slide 12: Fundraising
Fundraising • Total Fundraise of $2.9 billion during the quarter was driven by $2.1 billion in Credit and $0.7 billion in Real Estate • Private Wealth Fundraise of $1.9 billion during the quarter was primarily driven by products from diversified and technology lending strategies in Credit, and produ
Slide 13: Credit Platform
Credit Platform • AUM of $79.5 billion increased 21% since September 30, 2022 ◦ The increase was primarily driven by capital raised in products from diversified and technology lending strategies • FPAUM of $54.3 billion increased 20% since September 30, 2022 ◦ The increase was primarily driven by ca
Slide 14: GP Strategic Capital Platform
GP Strategic Capital Platform • AUM of $51.4 billion increased 7% since September 30, 2022 ◦ The increase was primarily driven by appreciation across the platform and capital raised in Blue Owl GP Stakes V and the professional sports minority stakes strategy • FPAUM of $28.6 billion relatively flat
Slide 15: Real Estate Platform
Real Estate Platform • AUM of $25.9 billion increased 39% since September 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 $14.1 billion increased 36% since September 30, 2022 ◦ Th
Slide 16: Supplemental Information
Supplemental Information
Slide 17: Supplemental Liquidity Metrics
Supplemental Liquidity Metrics As of September 30, 2023, the average maturity of the Company's outstanding notes is ~12 years Total Debt ($M) Available Liquidity ($M) $1,780 $270 BBB $60 Rated by S&P and Fitch $350 $77 $400 $1.3B Available Liquidity $700 $759 $1,273 3.0% Revolving Credit Facility Co
Slide 18: FPAUM to AUM Bridge
FPAUM to AUM Bridge As of September 30, 2023, AUM not yet paying fees totaled $12.6 billion, reflecting expected annual management fees of approximately $175 million once deployed $37.9 $156.9 $9.3 $25.9 $16.2 $9.4 $12.4 $0.2 $12.6 $5.6 $119.0 $2.4 $3.6 $0.9 $109.6 $51.4 $97.0 $9.3 $14.1 $97.0 $28.6
Slide 19: AUM and FPAUM Rollforwards
AUM and FPAUM Rollforwards Three Months Ended September 30, 2023 Twelve Months Ended September 30, 2023 (dollars in millions) GP Strategic GP Strategic Credit Capital Real Estate Total Credit Capital Real Estate Total AUM Beginning Balance $ 73,793 $ 50,934 $ 24,826 $ 149,553 $ 65,686 $ 47,839 $ 18,
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) 3Q'23 3Q'22 3Q'23 3Q'22 Revenues Management fees, net (includes Part I Fees of $97,621, $62,808, $353,523 and $197,617) $ 386,009 $ 338,377 $ 1,457,935 $ 1,097,671 Administrative, transa
Slide 22: GAAP Results Summary (Unaudited)
GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 GAAP Revenues Management Fees, Net $ 386,009 $ 371,829 $ 358,825 $ 341,272 $ 338,377 Administrative, Transaction and Other Fees 43,641 45,108 31,655 42,020 32,609 Realized Perfo
Slide 23: Non-GAAP Results Summary (Unaudited)
Non-GAAP Results Summary (Unaudited) Quarter Ended (dollars in thousands, except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 FRE Revenues FRE Management Fees, Net $ 396,668 $ 381,599 $ 368,594 $ 351,041 $ 348,147 FRE Administrative, Transaction and Other Fees 16,103 19,877 8,809 17,317 14,826 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) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 3Q'23 3Q'22 GAAP Net Income (Loss) Attributable to Class A Shares $ 15,109 $ 12,859 $ 8,317 $ 1,592 $ 2,060 $ 37,877 $ (10,799) Net income (loss) attributable to noncontrolling interests 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) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 3Q'23 3Q'22 Weighted-Average Adjusted Shares Class A Shares(1) 454,982,939 448,750,838 445,452,642 441,185,492 430,734,524 Common Units and Vested Incentive
Slide 27: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) (dollars in thousands) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 GAAP Management Fees $ 142,135 $ 203,750 $ 227,337 $ 247,632 $ 284,325 $ 338,377 $ 341,272 $ 358,825 $ 371,829 $ 386,009 Strategic Revenue-Share Purchase consideration amortization —
Slide 28: 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 29: Defined Terms (cont'd)
Defined Terms (cont’d) Part I Fees Refers to quarterly performance income on the net investment income of our BDCs and similarly structured products, subject to a fixed hurdle rate. These fees are classified as management fees throughout this report, as they are predictable and recurring in nature,