Blue Owl Capital Inc. · NYSE:OWL
Blue Owl Capital — Investor Day (February 2025)
186 slides from Blue Owl Capital's investor day presentation, Feb 7, 2025
Slide 1: Investor Day
Investor Day FEBRUARY 7, 2025 1
Slide 2: Important Notice
Important Notice This presentation has been prepared by Blue Owl Capital Inc. (NYSE: OWL) (“Blue Owl”) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Blue Owl and certain
Slide 3: Event Agenda
8:30am Welcome Remarks Ann Dai 8:35am Blue Owl’s Strategic Vision Doug Ostrover 9:05am Credit Craig Packer Alternative Credit Ivan Zinn 9:35am GP Strategic Capital Michael Conley 9:50am Real Assets Marc Zahr Net Lease Gary Rozier Real Estate Credit Jesse Hom Digital Infrastructure Matt A’Hearn 10:25
Slide 4: Welcome Remarks
Welcome Remarks Ann Dai Head of Investor Relations 4
Slide 5: Our Shareholder Base Has Meaningfully Changed Since Listing
Our Shareholder Base Has Meaningfully Changed Since Listing Ownership at Listing Ownership at 12/31/241 1% 12% Neuberger Berman 26% Blue Owl GP Stakes Fund IV 35% 37% Other Pre-IPO Shareholders Blue Owl Management / Senior Employees PIPE Investors 24% New OWL Public Shareholders 4% SPAC Shareholders
Slide 6: Over the Past 3 Years…
Over the Past 3 Years… We have generated a 140% Turnover in OWL Class A 40% return for shareholders since our 2022 Investor Day share ownership since our $1.46 listing Of OWL’s Top 20 public $26.01 12 shareholders at listing are no longer shareholders today $11.24 Of OWL’s current Top 50 public 2022
Slide 7: Blue Owl's Strategic Vision
Blue Owl’s Strategic Vision Doug Ostrover Co-Chief Executive Officer 7
Slide 8: Skate to where the puck is going to be, not where it has been.
Skate to where the puck is going to be, not where it has been.
Slide 9: We continue to lean in on innovation and scale
We continue to lean in on innovation and scale
Slide 10: Since our last Investor Day, we've achieved substantial growth and diversification
Since our last Investor Day, we’ve achieved substantial growth and diversification across Blue Owl…
Slide 11: Blue Owl Evolution Since Listing
Blue Owl Evolution Since Listing Soaring to new heights… At Listing1 Today2 Employees ~250 1,100+ 4.4x Offices 6 20+ 3.5x Stock Price $10.00 $26.01 2.6x Market Cap $12bn+ $38bn+ 3.2x AUM $62bn $251bn 4.0x FRE Revenue $0.9bn $2.2bn 2.4x Investment Strategies 7 15 2.1x 11
Slide 12: We Have Accomplished a Significant Amount in the 3+ Years We've Been Public
We Have Accomplished a Significant Amount in the 3+ Years We’ve Been Public $251bn 49% Real Estate Credit CAGR Investment Grade Credit Alternative Credit Liquid Credit $102bn Net Lease Other1 GP Minority Stakes $62bn Direct Lending Subsequent to 4Q24 Digital Infrastructure: $14bn 2Q21 1Q22 4Q24 At L
Slide 13: Blue Owl 2022 Investor Day - $102bn of AUM
Blue Owl 2022 Investor Day - $102bn of AUM Direct Lending GP Capital Solutions Real Estate $45bn $41bn $16bn Diversified Lending $30.4bn GP Minority Equity $39.6bn Net Lease $16.1bn Technology Lending $8.9bn GP Debt Financing $1.3bn First Lien Lending $3.5bn Professional Sports $0.2bn Opportunistic
Slide 14: Blue Owl Today - $251bn of AUM
Blue Owl Today - $251bn of AUM Credit GP Strategic Capital Real Assets $136bn 3.0x Growth $66bn 1.6x Growth $49bn 3.1x Growth Diversified Lending GP Minority Stakes $62.4bn Net Lease $33.9bn Technology Lending First Lien Lending Opportunistic Lending GP Debt Financing $2.8bn Real Estate Credit $15.5
Slide 15: Our Strategies That Existed As of Our Last Investor Day
Our Strategies That Existed As of Our Last Investor Day Length of Track Record1 2010 2015 2020 AUM Today Direct Lending 2016 $98bn GP Strategic Capital2 2011 $66bn Net Lease 2009 $34bn 15
Slide 16: Our Strategies Today
Our Strategies Today Diversification into the largest growth areas of alternatives with the benefit of long track records of success Length of Track Record1 2010 2015 2020 AUM Today Direct Lending 2016 $98bn GP Strategic Capital2 2011 $66bn Net Lease 2009 $34bn Liquid Credit & Other 2015 2023 $10bn
Slide 17: We Have Demonstrated Differentiated Growth Across Key Metrics
We Have Demonstrated Differentiated Growth Across Key Metrics Since our 2022 Investor Day, we have led the peer group in growth across many key metrics1 FRE CAGR DE CAGR #1 #1 31% 29% 16% 6% OWL Peer Average OWL Peer Average AUM CAGR Permanent Capital CAGR #1 #1 40% 34% 13% 13% OWL Peer Average OWL
Slide 18: Reflecting Both Strength and Stability of Growth Through Various Market Environments
Reflecting Both Strength and Stability of Growth Through Various Market Environments 42% Significant outperformance over a 3-year period 30% 25% 22% 16% 13% 8% 8% 8% 4% OWL OWL OWL OWL -5% -5% 1 2022 2023 2024 3 Year Average OWL DE Growth Peer Average DE Growth S&P 500 Earnings Growth 18
Slide 19: Blue Owl Is Levered to the Largest Secular Growth Trends in Alternatives
Blue Owl Is Levered to the Largest Secular Growth Trends in Alternatives Annual Expected Direct Lending continues There is $12 trillion of PP&E Hyperscaler CapEx Spend to grow and take market on the balance sheets of IG companies in North America $bn share from the leveraged loan and high yield mark
Slide 20: Allocations to Alternatives Continue to Increase Across Institutional and Private Wealth
Allocations to Alternatives Continue to Increase Across Institutional and Private Wealth $ trillions 2022 2028E Investors that intend to maintain or Pensions 54.4 71.8 91% increase allocations to private debt over the long term. Insurance 33.9 42.0 Institutional allocation to alternative Sovereign W
Slide 21: We See a Very Long Runway Ahead for Alts in Private Wealth
We See a Very Long Runway Ahead for Alts in Private Wealth New Frontiers The 401k market Technology 401k Market represents a lowers Self-Directed $8.9tn structural Tech Driving Access opportunity barriers to alts 92% of Blue Owl’s Expanded Wealth Growing Private Wealth footprint in Singapore, Global
Slide 22: We Are Resourced to Support Meaningful Growth
We Are Resourced to Support Meaningful Growth Where we were: Last Investor Day Greenwich Chicago New York City Menlo Park London Hong Kong Short Hills Singapore 400 10 Employees Offices 22
Slide 23: We Are Resourced to Support Meaningful Growth
We Are Resourced to Support Meaningful Growth Where we are today1: Greenwich Chicago New York City Amsterdam San Francisco Boston Frankfurt Short Hills Tokyo Menlo Park London Washington DC Dallas Dubai Miami Hong Kong Singapore Sydney 1,100 20+ Employees Offices 23
Slide 24: And Continue to Broaden and Diversify Our Investor Base
And Continue to Broaden and Diversify Our Investor Base Based on equity commitments 4x more Wealth Clients Private Wealth 32% and 2x more 1 Institutional Clients Insurance (LPs / KAM ) 20% (since last Investor Day) Public Pension 19% Corporate Pension 9% 8% EMEA & RoW Sovereign Wealth Fund 8% 13% Fa
Slide 25: As the Industry Consolidates, Blue Owl's Scale Is Even More Valuable to Potential Partners
As the Industry Consolidates, Blue Owl’s Scale Is Even More Valuable to Potential Partners Blue Owl Net Lease Blue Owl Real Estate Credit Since Acquisition Signing1: Blue Owl Insurance Solutions 2.7x 2.9x FRE AUM Revenues Blue Owl Alternative Credit +28 bps 2.1x Average Mgmt Flagship Fund Blue Owl D
Slide 26: Culture Is Critical to Our Success
Culture Is Critical to Our Success Mutual respect Constructive dialogue We hold ourselves to the highest standard of professional We invite alternative points of view. As a firm, we encourage thoughtful, conduct. We acknowledge everyone’s unique contributions intentional, and honest opinions. and in
Slide 27: What do we think we can accomplish over the next 5 years?
What do we think we can accomplish over the next 5 years?
Slide 28: We Expect to More Than Double Key Metrics Over the Next 5 Years
We Expect to More Than Double Key Metrics Over the Next 5 Years FRE Management Fees Fee Related Earnings AUM ($ billions) ($ billions) ($ billions) 20+% 5.1+ 20+% 3.1+ 2x+ 500+ CAGR CAGR Growth 251 2.0 1.3 2024 2029 Target 2024 2029 Target 2024 2029 Target Projections and forward-looking statements
Slide 29: Our Earnings Are Underpinned by Our Durable Permanent Capital
Our Earnings Are Underpinned by Our Durable Permanent Capital The Layer Cake Effect 91% of FRE Management DE is 100% driven by And incremental Fees are driven by FRE, lowering earnings fundraising adds to the permanent capital volatility layer cake of earnings Permanent capital means we keep the AUM
Slide 30: With New Layers from Fundraising, Deployment, and M&A
With New Layers from Fundraising, Deployment, and M&A The Layer Cake Effect We are fundraising from an increasingly diversified M&A set of strategies, products, and investors, which adds to the layer cake of earnings New Capital Raised and Deployed We have $23 billion of AUM which will drive over $3
Slide 31: Key Takeaways
Key Takeaways We expect to grow our FRE Management Fees and FRE by a 20+% CAGR over the next 5 years 1 We expect to more than double our AUM to $500bn+ by 2029 2 We can replicate the growth of our net lease business with Atalaya, IPI, and others We are well positioned in the largest secular growth a
Slide 32: We Believe Our Stock Has Meaningful Upside Potential
We Believe Our Stock Has Meaningful Upside Potential Our FRE growth has significantly …and yet our stock currently We told you we think we can more outperformed peers since our trades below the average peer than double earnings over the next 5 listing1... FRE multiple1 years 32% Multiple Stock ~33.5
Slide 33: Credit
Credit Craig Packer Co-President, Head of Credit 33
Slide 34: Blue Owl Manages a Market Leading Credit Business
Blue Owl Manages a Market Leading Credit Business We offer institutional, private wealth, and insurance clients access to compelling and differentiated investment opportunities across world class credit strategies Our Credit Business Today - $136bn AUM Direct Alternative Investment Grade Liquid Othe
Slide 35: Direct Lending Remains Our Largest Credit Strategy
Direct Lending Remains Our Largest Credit Strategy AUM FRE Management Fees ($ millions) $1,133 33% $98bn 67% CAGR $870 CAGR $621 $434 $195 $62 $124 $31 2017 2018 2019 2020 2021 2022 2023 2024 $45bn Fee-Paying AUM ($ billions) 38% CAGR $59 $42 $48 Investor Day 20221 12/31/2024 $32 $15 $21 Diversified
Slide 36: Fundraising Momentum Has Been Strong with Continued Interest from Institutional and Wealth Investors
Fundraising Momentum Has Been Strong with Continued Interest from Institutional and Wealth Investors Since inception, we raised more than $45bn of equity with significant momentum in non-traded funds ($ billions) $48.7 90+% OTIC Institutional investors expect to Launch maintain or increase private d
Slide 37: Blue Owl Direct Lending by the Numbers
Blue Owl Direct Lending by the Numbers Robust Originations with Highly Defensive Portfolios with Strong Selective Deployment1 Competitive Positioning1 ~10,000 760+ 510+ $980mn $243mn 39% Deals Sponsor Deals Average Average Average Reviewed Relationships Closed2 Revenue EBITDA LTV ~5% 140 430+ 20bps
Slide 38: Proven Ability to Originate & Lead Marquee Financings
Proven Ability to Originate & Lead Marquee Financings Deals Deal Due Investment Deal Sourcing Screening Diligence Committee Closing 9,963 6,503 1,313 803 512 Closed on 5% of % of Total Deals 65% 13% 8% Deals Sourced ~90% 50%+ ~20% ~35% Control Positions 2024 Incumbent Sole % of $1bn+ deals (Agent or
Slide 39: Our Value Proposition Drives Better Spreads vs. Public Markets
Our Value Proposition Drives Better Spreads vs. Public Markets 9% 185 bps Avg. Pricing Premium 8% 7% 6% 5% 4% 3% 2% 1% 0% LSTA US Lev Loan Spread B/B+ Rated FL Loans - Institutional Blue Owl Direct Lending 1L Spreads above Lev Loans Average Leveraged Loan Average Blue Owl Direct Lending Please see e
Slide 40: Growth Has Been Driven by Our Leading BDC Business
Growth Has Been Driven by Our Leading BDC Business Our BDCs provide a growing permanent capital base, allowing us to benefit from significant scale and to remain active in the market across all environments Diversified Strategy: $60.4bn AUM including 3 BDCs1 Technology Strategy: $23.2bn AUM includin
Slide 41: Blue Owl Is Taking Outsized Market Share in a Growing Asset Class
Blue Owl Is Taking Outsized Market Share in a Growing Asset Class ($ billions) $1,000 ~20% 55%+ $120 Why We’re Winning Direct Lending Blue Owl Direct $100 $800 AUM CAGR Lending AUM CAGR • Demonstrated track record of delivering compelling relative $80 returns $600 • Wide range of product $60 structu
Slide 42: Large, Diversified Lenders Benefit Disproportionately As the Market Grows
Large, Diversified Lenders Benefit Blue Owl’s Disproportionately As the Market Grows Competitive Advantage Scale Where Blue Owl Less than a handful of parties One of few that can provide full, participates • Regularly lead large deals for customized solutions in size upper-middle market companies •
Slide 43: Greater Adoption of Direct Lending Has Been Driven by a Number of Factors
Greater Adoption of Direct Lending Has Been Driven by a Number of Factors Maturation of the Market has Accelerated Adoption The $1bn+ Direct Lending Deal Has Become Increasingly Common • As leading private credit managers scaled… $77 • Bigger pools of capital allowed for larger commitments, which dr
Slide 44: Significant Growth Opportunity Remains for Direct Lending
Significant Growth Opportunity Remains for Direct Lending Private Equity vs. Direct Lending Dry Powder Continued Momentum in Direct Lending Market Share Growth ($ billions) 30%+ $2.6 21% 11% $1.6 Public Market Outstandings Direct Lending AUM 2019 2024 2029E $1.0 Direct Lending has grown to ~20% of t
Slide 45: Why We Are Confident in The Future of Our Direct Lending Strategy
Why We Are Confident in The Future of Our Direct Lending Strategy 1 Market Leader 2 Strong Track Record We are among the few platforms with the Our track record of consistent, high-quality size, scale and flexibility to consistently returns across markets demonstrates the deliver for investors and s
Slide 46: Within Credit, we now have a scaled and experienced Alternative Credit team…
Within Credit, we now have a scaled and experienced Alternative Credit team…
Slide 47: Alternative Credit
Alternative Credit Ivan Zinn Head of Alternative Credit 47
Slide 48: Introducing Blue Owl's Alternative Credit Strategy (f/k/a Atalaya)
Introducing Blue Owl’s Alternative Credit Strategy (f/k/a Atalaya) Despite an extensive track record, we’ve barely scratched the surface Opportunistic Legacy Alternative Credit Drawdown Vehicles Specialty Finance Lender of the Year, Americas Untapped Alternative Credit Private Debt Investor, Fund Un
Slide 49: Key Segments of Asset-Based Finance
Key Segments of Asset-Based Finance A key distinction of Asset-Based Finance (“ABF”) investing is that the lender’s source of repayment is derived from the contractual cashflows of a pool of assets Private Credit Corporate Credit Alternative Credit Direct Lending Asset-Based Finance Financial Assets
Slide 50: Asset-Based Finance: The Backbone of Main Street
Asset-Based Finance: The Backbone of Main Street Blue Owl Alternative Credit is financing everyday consumers and businesses Illustrative example: A trip down Main Street How you travel Aircraft financed by aircraft loans Where you live How you buy Financed by mortgages Financed by credit cards Where
Slide 51: Why Now? The Alternative Credit Opportunity
Why Now? The Alternative Credit Opportunity Bank retrenchment & resulting opportunity set that occurred in corporate lending post-GFC is reoccurring in ABF Corporate Lending ABF Retrenchment Retrenchment 2008 Phase I Phase II TODAY GFC Regional Banking Crisis Volcker Rule Change in stability of depo
Slide 52: Why Now? A Large and Underpenetrated Market
Why Now? A Large and Underpenetrated Market Tremendous growth potential in the ABF market based upon trajectory of corporate lending privatization $11 Trillion Estimated Addressable ABF Market Private ABF can grow 4x by simply matching current corporate private penetration 16% Penetration of Current
Slide 53: Offering Investors Differentiated Exposure in Private Credit
Offering Investors Differentiated Exposure in Private Credit Asset-based finance completes investors’ private credit portfolios Diversification Uncorrelated to corporate credit risk Individual portfolio investments typically secured by pools of assets, increasing diversification Why ABF? Attractive
Slide 54: Asset-Based Finance Provides Protection for Investors
Asset-Based Finance Provides Protection for Investors Targeting investments that feature additional structural protection to complement those provided by the underlying asset collateral Asset Features Weighted average lives of 0.5 - 2.5 years can allow for accelerated de-risking and more rapid perfo
Slide 55: Structuring to De-Risk Consumer & Commercial Credit
Structuring to De-Risk Consumer & Commercial Credit Assets can withstand multiples of severe macroeconomic stress before return impairment Understanding Individual Investment Resiliency… … to Generate Attractive Risk-Adjusted Returns For Illustrative Purposes Metrics for asset income funds, which co
Slide 56: Requires Decades of Historical Data Points with Data Science
Requires Decades of Historical Data Points with Data Science Data-intensive nature of ABF creates significant barriers to entry Enhanced Asset-Level Modeling in Underwriting Tracking Asset Performance in Real Time Excel model (one scenario) Loan pool Aggregate attributes Data science models (with lo
Slide 57: M&A Playbook: Path to Value Creation As Part of Blue Owl
M&A Playbook: Path to Value Creation As Part of Blue Owl Alternative Credit AUM ? Launch new Alternative Credit products in 2025 Scale deployment with more capital targeting more diversified returns, expanding Blue Owl’s Alternative Credit value proposition to counterparties 21% $11bn CAGR Create pr
Slide 58: Looking ahead for our Credit platform…
Looking ahead for our Credit platform…
Slide 59: Expansion of Our Credit Business Means a Wider Funnel for All
Expansion of Our Credit Business Means a Wider Funnel for All Driving Improved Investor Outcomes Across Institutional, Private Wealth, and Insurance Investors • Shared expertise • Increased range of opportunities • Ability to speak for larger bite sizes • Deeper counterparty relationships • Greater
Slide 60: Our Expanded Product Offering Benefits Borrowers & Investors
Our Expanded Product Offering Benefits Borrowers & Investors Blue Owl Direct Lending Blue Owl Credit (2022 Investor Day) (Today) Maximum Bite Size: $500mn – $750mn Maximum Bite Size: $1bn+ Investment Focus: Investment Focus: • • First Lien Loan First Lien Loan • Asset-based finance / rediscount • Se
Slide 61: We Have a More Diversified Set of Growth Drivers Propelling Us Forward
We Have a More Diversified Set of Growth Drivers Propelling Us Forward Blue Owl Credit AUM $136bn $2 Ongoing expansion of Direct Lending across $7 Institutional and Private Wealth channels $18 $11 Launch of new Alternative Credit products in 2025 and continued fundraising momentum in existing strate
Slide 62: Key Takeaways For Today
Key Takeaways 1 2 3 For Today We have diversified our Credit business The opportunity set for Direct Lending remains We see a long runway ahead for Alternative significantly over the significant and we expect Credit driven by global past 3 years, serving to remain a market expansion of the existing
Slide 63: GP Strategic Capital
GP Strategic Capital Michael Conley Senior Managing Director 63
Slide 64: GP Strategic Capital by the Numbers
GP Strategic Capital by the Numbers FRE Management Fees ($ millions) 100% of GP Strategic Capital’s FRE Management 24% $529 $546 $615 CAGR Fees Are From Permanent $358 $314 Capital $185 $287 $136 2017 2018 2019 2020 2021 2022 2023 2024 GP Strategic Capital AUM GP Minority Stakes — $62.4bn Fee-Paying
Slide 65: High Quality Performance Over Multiple Vintages
High Quality Performance Over Multiple Vintages Strong cash flows and capital return underpin top quartile returns GP Stakes III (2016) Net IRR 22.4% $5.3bn Net MOIC1 2.76x Committed capital Net DPI2 1.25x Top quartile vintage3 GP Stakes IV (2019) $9.0bn Net IRR 38.7% Committed capital Net MOIC1 2.0
Slide 66: Our GP Minority Stakes Strategy Combines Opportunistic Return Potential and Attractive Yield
Our GP Minority Stakes Strategy Combines Opportunistic Return Potential and Attractive Yield GP Stakes III (2016) Top Quartile Top Quartile Top Quartile 1 Ownership of GP Economics creates long-term 2.8x 1.3x 22.4% 1.2x equity upside 18.5% 2.2x 2 Meaningful cash on cash returns serve to mitigate ris
Slide 67: Our Partner Managers Have Seen Meaningful Growth…
Our Partner Managers Have Seen Meaningful Growth… Historical AUM Growth ($bns) Illustrative asset exposure across recent GP Minority Stakes funds1 Private Debt, GP Stakes III $674 17% Buyout, 54% ▪ 10 partner managers 244% Real GP Stakes ▪ ~150 underlying funds $196 Assets, III 28% ▪ ~1,050 portfoli
Slide 68: We Remain the Clear Market Leader in GP Minority Stakes
We Remain the Clear Market Leader in GP Minority Stakes 16 GP Stakes Total Capital Raised – GP Stakes % of Total Next Vintage Target GP Stakes V Blue Owl1 $38.5bn 63% 14 Peer 1 $8.9bn 14% 12 Peer 2 $8.4bn 14% Peer 3 $3.3bn 5% Fund Size ($bns) GP Stakes IV 10 Peer 4 $2.4bn 4% 8 GP Stakes III 6 Peer 1
Slide 69: Providing Growth Capital to a Growing Industry
Providing Growth Capital to a Growing Industry GP stakes are a response to a significant unmet capital need Pre-deal financial motivations Global Private Markets GP Commitments ($ billions) ~5% of GP commitment $1.2tn • Larger investments alongside LPs of Private Capital • Enhance alignment and deal
Slide 70: Business Services Platform (BSP) – A Value-Add to Partner Managers
Business Services Platform (BSP) – A Value-Add to Partner Managers Approximately 60 team members providing strategic advice and services to Partner Managers KEY ADVISORY AREAS Fundraising & Client Capital Strategies Private Wealth Advisory Development Corporate Strategy and M&A ESG Advisory Business
Slide 71: Our Competitive Advantages Are Significant
Our Competitive Advantages Are Significant Size, scale and agility All GP Minority Stakes deals $600 million+4 90+ 70+ 88% total transactions1 partnerships2 30+ ~60 person investment person business team services team 0 6.9x 12% senior investment median entry team turnover multiple since since incep
Slide 72: Our Scale Creates Leverage in Purchase Prices
Our Scale Creates Leverage in Purchase Prices Since 2015, Blue Owl GP Minority Stakes has closed 40+ transactions at an over 50% discount to public market comparables Blue Owl GP Strategic Capital Transaction Multiples (3yr Avg DE) vs. Public Comparables1 35x 30x 25x Blue Owl GP Minority Stakes Medi
Slide 73: The Opportunity Set for Deployment Remains Robust
The Opportunity Set for Deployment Remains Robust We are focused on the largest specialist private markets managers globally Total GP Minority Stakes capital raised by Blue Owl Pipeline segmented into three principal channels Total GP Minority Stakes capital raised by all market participants Estimat
Slide 74: Key Takeaways For Today
Key Takeaways 1 2 3 For Today Our GP Strategic Capital business Scale is a meaningful competitive advantage, The runway for growth is long as the meets alternative driving favorable alternatives industry asset managers’ real outcomes for our continues to expand and and significant investors evolve n
Slide 75: Real Assets
Real Assets Marc Zahr Co-President, Head of Real Assets 75
Slide 76: Blue Owl Real Assets - Exceptional Growth Over the Last 36 Months
Blue Owl Real Assets - Exceptional Growth Over the Last 36 Months A pioneer in Triple Net Lease, now diversifying into Real Estate Credit and Digital Infrastructure 2021 2024 Oak Street at Acquisition Announcement Pro-Forma for IPI Acquisition 9/30/21 12/31/24 $12.4bn 24 $63.6bn 100+ AUM Investment
Slide 77: We Have Thrived in Real Estate Capital Raising
We Have Thrived in Real Estate Capital Raising #1 Private Wealth Capital Raiser #1 Institutional Capital Raiser (2024) (2024) Non-Traded REIT Fundraising LTM 2024 Top Institutional Real Estate Fund Closes Firm Gross Raise ($mn) Net Raise1 ($mn) Fund Manager Size ($bn) $2,353 $2,148 Blue Owl Real Est
Slide 78: Expansion into Real Estate Credit: Blue Owl Expertise Meets Market Opportunity
Expansion into Real Estate Credit: Blue Owl Expertise Meets Market Opportunity Entering another trillion-dollar market with a high-quality incumbent player A Favorable Point in Time to Enter Lending at Lower Leverage Levels Real Estate Credit Earning Higher Returns Lower LTVs Driven by Re-Priced Ass
Slide 79: We See a Generational Opportunity in Digital Infrastructure
We See a Generational Opportunity in Digital Infrastructure Growing Global Data Center Demand by One of the Largest Supply / Hyperscale Capital Expenditures Capacity (GW) Demand Imbalances We’ve Seen ➢ ~$1.1tn of new build capacity 160 152 $219bn investment required over the next 140 $176bn few year
Slide 80: A Record of Achievement in Net Lease
A Record of Achievement in Net Lease Demonstrating consistency, strength, and the power of scale #1 #1 7%+ Net private wealth capital Institutional capital raiser in Annualized Preferred raiser for non-traded REIT 2024 Return, paid monthly1 since inception 179 months 15+ Years 24% of Consecutive Blu
Slide 81: Net Lease
Net Lease Gary Rozier Senior Managing Director 81
Slide 82: Blue Owl Is the Leader in Net Lease Real Estate
Blue Owl Is the Leader in Net Lease Real Estate 2009 2024 Largest institutional real estate fund raised in 2024 First and only net lease private equity firm to raise institutional capital $34 billion of AUM Raised more than 75% of dedicated net lease capital in the space Raised Real Estate Fund I wi
Slide 83: Differentiated Performance Has Driven Strong Investor Demand
Differentiated Performance Has Driven Strong Investor Demand And we expect to continue to scale new and existing strategies Total Capital Raise by Fund Type Closed-End Institutional Funds International Open-End Non-Traded REIT Strategies Institutional (Cumulative Raise) ? Fund ? $5.2bn $4.8bn $3.9bn
Slide 84: Expansion into Europe Is a Logical Next Step for Net Lease
Expansion into Europe Is a Logical Next Step for Net Lease Leveraging our scale and proprietary relationships to enter an untapped market Blue Owl – Very few dominant players in market share European net in net lease lease Despite significant interest from Until now. tenants with significant Europea
Slide 85: The Addressable Market in Triple Net Lease Vastly Overshadows Available Capital
The Addressable Market in Triple Net Lease Vastly Overshadows Available Capital Current market penetration of net lease is less than 1% globally Total Investment Grade Universe – Investment Grade Universe – North America Investment Grade Universe – EEA North America & EEA $11.9T $11.2T $23T+ Address
Slide 86: Investing Behind Significant Secular Themes Requiring Scaled Capital
Investing Behind Significant Secular Themes Requiring Scaled Capital Blue Owl Has Eclipsed the Rest of the Market in Dedicated Meeting Sizeable Industry Needs… Net Lease Capital Raising 1 Digital Infrastructure 77% • Digital infrastructure market is expected to exceed $1 trillion of total constructi
Slide 87: Real Estate Credit
Real Estate Credit Jesse Hom CIO of Real Assets, Head of Real Estate Credit 87
Slide 88: Introducing Prima: A Scaled Player in Public and Private Real Estate Credit
Introducing Prima: A Scaled Player in Public and Private Real Estate Credit Outstanding CMBS Single Asset Single Borrower (SASB) Volume ‘14-’24 How We Invest: SASB market experiencing exponential growth increasing at a 15.8% CAGR over Securities the last decade. Private Loans $300 35% 30% Where We I
Slide 89: Expanding Our Deployment Universe As Part of Blue Owl
Expanding Our Deployment Universe As Part of Blue Owl Controlling more of the capital stack increases our value proposition to counterparties Former Prima Capital Advisors Current Blue Owl Real Estate Credit Equity Equity 75 – 100% 75 – 100% LTV LTV Commingled Fund 55 – 75% Third Party 60 – 75% LTV
Slide 90: A Massive Market with Traditional Financing Sources Pulling Back
A Massive Market with Traditional Financing Sources Pulling Back Commercial Real Estate Mortgage Debt Outstanding Total Potential Addressable Market Non-Traditional 12.1% Potential market CRE Banks & increases over 3x Securities Thrifts Largest capital 12.9% when including $4.7 $20+ 38.2% provider t
Slide 91: The Pending Maturity Wall in CRE Presents Opportunity
The Pending Maturity Wall in CRE Presents Opportunity And CRE value declines create better entry points U.S. Commercial Real Estate Value Decline Commercial Real Estate Debt Maturities ($bn) (2022 – 2023) $629 $621 U.S. $598 $599 $595 0% -5% $307 $301 $311 $295 $301 -10% -15% -20% -25% $305 $322 $32
Slide 92: Digital Infrastructure
Digital Infrastructure Matt A’Hearn Head of Digital Infrastructure 92
Slide 93: Blue Owl Digital Infrastructure Overview
Blue Owl Digital Infrastructure Overview Stockholm Oslo Chicago Calgary Copenhagen New Albany Frankfurt Seattle Avenches Toronto Milan Hillsboro NoVA Silicon Geneva Seoul Valley Atlanta Zurich Miami Phoenix Dallas Tokyo Denver Osaka Malaysia ~2.9 GW 85 930+ Melbourne Operational & Portfolio Leased U
Slide 94: A Long Track Record Focused Solely on Data Centers
A Long Track Record Focused Solely on Data Centers Scale, vertical integration, and Blue Owl Digital Infrastructure’s dedicated focus positions us well in the growing marketplace Blue Owl Digital Infrastructure Capacity Capturing Hyperscale Cloud and Global AI Market Opportunity 10.0 GW Projection $
Slide 95: Significant Capital Demand with Systemic Supply Constraints
Significant Capital Demand with Systemic Supply Constraints Hyperscalers are increasingly looking to lease data centers Limited Supply: Primary Market Vacancy Rates Lease 50% Self-build 3-Year Trailing Avg. 2Q24 US 4% 2% EMEA 3% 2%AI APAC 8% 6% Cloud YoY change in hyperscale rental rates grew Indica
Slide 96: Scale and Capabilities Drive Relevancy in Digital Infrastructure
Scale and Capabilities Drive Relevancy in Digital Infrastructure Scale Partnership Scale Global Sites Scale Execution Scale Team Scale Capital Creative solution provider Rise in data creation driving Vertically integrated 45+ person Digital Sizable fund series, with broad capabilities demand for inc
Slide 97: The Barriers to Entry Are Significant
The Barriers to Entry Are Significant What We Offer Investors: What We Offer Hyperscalers: ❑Product differentiation Hyperscalers are looking ❑Long-standing development and operations expertise for trusted partners to ❑Long track record build and manage their ❑Vertical integration ❑Income generation
Slide 98: We're just getting started across Real Assets…
We’re just getting started across Real Assets…
Slide 99: The Power of the Blue Owl Real Assets Platform
The Power of the Blue Owl Real Assets Platform Scaled & Permanent Broadened Capital Formation Origination Capabilities Enhanced Investment & Robust Underwriting Capabilities Platform Support 99
Slide 100: Real Assets Has Been Our Fastest Growing Platform… And We Think That Can Continue
Real Assets Has Been Our Fastest Growing Platform… And We Think That Can Continue Blue Owl Real Assets AUM $64bn Next vintage flagship products in Net Lease and Digital Infrastructure $14 Launch of new Digital Infrastructure product in Private $16 Wealth channel and ongoing expansion of ORENT global
Slide 101: Key Takeaways For Today
Key Takeaways 1 2 3 For Today Our Real Assets business is financing Scale matters greatly, and we are one of the Each of the markets we’re in numbers in the trillions the most mission- market leaders in Net of dollars, offering an critical assets Lease and Digital extremely long runway across massiv
Slide 102: The Future of Data Centers
The Future of Data Centers Fireside Chat with Doug Ostrover and Divesh Makan 102
Slide 103: A Short Break
s.ue OWL A Short Break
Slide 104: M&A: Our Key Tenets
M&A: Our Key Tenets Panel Discussion with Marc Lipschultz, Marc Zahr, and Ivan Zinn 104
Slide 105: Our Hybrid M&A Strategy Is a Complement to Robust Organic Growth
Our Hybrid M&A Strategy Is a Complement to Robust Organic Growth Roll out the Blue Owl M&A playbook: Identify areas of the market with: ❑ Prioritize entrepreneurial founders who join ❑ Demand for capital that is meaningfully Blue Owl to further grow their businesses outstripping supply (runway for d
Slide 106: Insurance Solutions
Insurance Solutions Panel Discussion with Eric Kirsch, Dhruv Narain, Jeff Walwyn, and Brian Roelke 106
Slide 107: Expanding Blue Owl's Value Proposition to Insurers
Expanding Blue Owl’s Value Proposition to Insurers Our focus on downside protection, income-generating strategies is particularly well suited for insurance clients 95 + Kuvare Asset = $35bn+ Existing Blue Owl Management Insurance AUM Insurance Clients 30+ investment 60% professionals 1 strategy New
Slide 108: A Dedicated Suite of Solutions
A Dedicated Suite of Solutions Our Insurance Product Map Credit Real Assets GP Strategic Capital Direct Lending IG Asset-Based Finance • SASB / Conduit CMBS • GP Minority Stakes • Diversified Lending • Consumer Finance • Commercial Mortgage • GP Debt Financing • Technology Lending • Life Settlements
Slide 109: We Expect to Grow Our Insurance Business Substantially
We Expect to Grow Our Insurance Business Substantially The opportunity set is massive, with insurers looking for differentiated offerings $20tn+ Signing New RoW 1 The global life and annuity Insurance market represents a sizeable Partnerships and growing opportunity Europe & Africa Alternative asset
Slide 110: Blue Owl Insurance Solutions Overview
Blue Owl Insurance Solutions Overview Key Differentiators At a Glance • Natural alignment with downside protected, income generative strategies that form the core DNA of Blue Owl Yield-Oriented Strong underlying cash Alternative Assets flow generation from all • Able to leverage $251bn Blue Owl plat
Slide 111: Positioned for Growth Through Flexible Partnership
Positioned for Growth Through Flexible Partnership Serving as a Partner instead of a Competitor Added senior professionals and established key leadership following the Kuvare Asset Experienced Management acquisition, including: Team • Chairman, Eric Kirsch • Chief Investment Officer, Jeff Walwyn • P
Slide 112: Blue Owl Has the Capabilities & Expertise to Drive Alpha for Insurers
Blue Owl Has the Capabilities & Expertise to Drive Alpha for Insurers Blue Owl Strategies offer Strong Returns and Capital Efficiency High Return, Low Capital Efficiency High Return, High Capital Efficiency Multi-Return and Rating Spectrum of Strategies Distressed Tactical Opportunities GP Minority
Slide 113: Bringing Blue Owl Strategies to the Insurance Market
Bringing Blue Owl Strategies to the Insurance Market Insurer-Customized Products Across the Risk Spectrum Investment Grade & Real Estate Credit Alternatives Tailored SMAs Rated Notes and Feeders bringing capital efficiency to all Blue Owl platforms • Able to define and adjust parameters such as rati
Slide 114: Institutional Business
Institutional Business James Clarke Global Head of Institutional Business Development 114
Slide 115: The Growth of Blue Owl's Institutional Business Since Our Last Investor Day
95+ Team Expansion | 2x+ increase in team size Headcount 11 Growing Presence | 6 new locations expanding our coverage Offices footprint The Growth of Blue Owl’s 900+ Broadening Client Base | 450+ new clients Institutional Clients Business 15 Differentiated Offerings | 7 new investment strategies Str
Slide 116: Institutional Client Demand for Alternatives Is Increasing...
Institutional Client Demand for Alternatives Is Increasing... Growth in Institutional Assets Allocations to Alternatives is Expected to Increase ($ trillions) (% of Investors) $72 Private Debt 55% 36% 91% $54 $42 $34 Private Equity 48% 42% 90% $16 $11 Real Estate 25% 55% 80% Pensions Insurance Sover
Slide 117: Why Institutions Partner with Us
Why Institutions Partner with Us Investor Type by Equity Commitment1 9% 1% North America 31% 28% 18% Asia Pacific Collaboration Europe & Middle We are an extension of our clients East 72% Rest of World 21% KAM2 14% 12% Consistency We strive to deliver best-in-class service and capabilities 8% 5% 10%
Slide 118: The Opportunity to Deepen and Grow Engagement is Significant
The Opportunity to Deepen and Grow Engagement is Significant Growth of Clients and Commitments1 Opportunity for Cross Selling2 5% Commitment to 2 20% 9% or More Platforms 37% $1bn+ 20% 14% $500mn – <$1bn 14% Commitment to 14% $250mn – <$500mn 95% 91% Only 1 Platform 20% 17% $100mn – <$250mn 26% <$10
Slide 119: Creating Value with Strategic Acquisitions…
Creating Value with Strategic Acquisitions… Our success in Real Assets demonstrates Blue Owl’s ability to accelerate growth of a platform’s future vintages Growth of Net Lease Funds Impact of Blue Owl Institutional Franchise on Fund VI ($ billions) ✓ ~80% of Fund V investors re-upped into Fund VI1 $
Slide 120: How we are going to get there
London Chicago Amsterdam Hong Kong Menlo Park New York Tokyo Singapore How we are Sydney going to get Dubai there Frankfurt 120
Slide 121: The Future of Institutional
Best-in-Class Client Service Serve our clients and help them stay ahead of the curve Domestic Expansion and International Penetration Deepen relationships and partner with more clients in more places The Future of Institutional Value Creation with New Solutions Unlock opportunities through expanded
Slide 122: Private Wealth
Private Wealth Sean Connor President and CEO of Blue Owl Global Private Wealth 122
Slide 123: The Private Wealth Opportunity Set Is Enormous and Still in the Early Innings
The Private Wealth Opportunity Set Is Enormous and Still in the Early Innings Global private wealth is a Individual investors are large and growing market under-allocated to alternatives Private Wealth Assets Growth % Allocations to Alternatives 20% $294tn $213tn ~$30-40tn TAM if allocations rise to
Slide 124: Market Share is Consolidating Amongst a Small Number of Managers
Market Share is Consolidating Amongst a Small Number of Managers Creating Significant Barriers to Entry $14bn 11% Average Average Market Share Equity Raised of Each of Each Manager Manager 2024 2024 $12 bn 10% 1% $1.7 bn Average of Top 6 Average of Top 7-25 Average of Top 6 Average of Top 7-25 Manag
Slide 125: A Market Leader in Fundraising and Favorability
A Market Leader in Fundraising and Favorability We are a newer name …But have already distinguished Blue Owl is a in private markets… ourselves by putting clients first. market leader Total brand Know a lot/ Favorability toward Blue Owl awareness a fair amount and peers Peer A 99% 68% Peer D 90% #1
Slide 126: How have we done it? We have an enduring focus on the client
How have we done it? We have an enduring focus on the client
Slide 127: We Have Built a Client-Centric and Multi-Faceted Business
We Have Built a Client-Centric and Multi-Faceted Business Best-in-Class Team Designed to Deliver for the Wealth Investor 140+ employees across 7 core regions Partnerships and distribution and 10+ global offices Global footprint with dedicated local and channel coverage US, Canada, Latin America, Eur
Slide 128: That Has Delivered Transformational Growth
That Has Delivered Scale 2021 Today Growth Transformational Total Equity $20 billion $52 billion ~2.5x Growth Raised Total Annual Equity Raised $4 billion $14 billion ~3.5x Average Evergreen Monthly Raise ~$150 million ~$775 million ~5.0x Diversification Evergreen 1 12+ Access Points Transacting Pla
Slide 129: Underpinned by a Strong Track Record of Innovation
Underpinned by a Strong Track Record of Innovation Pioneer in Perpetual, Pioneer in Perpetual Non-Traded BDCs Private REITs $39 billion #1 Evergreen BDC AUM REIT fundraiser Early Mover in Global Distribution ✓ Local products Award-winning digital & ✓ Local currencies in-person education platform ✓ L
Slide 130: Industry-Leading Wealth Platform at One of the Largest Alternative Asset Managers
That has Led to an Industry-Leading Wealth Platform at One of the Largest and Fastest Growing Alternative Asset Managers Top 3 $52bn 140+ Alts Capital Raiser Equity Raised Dedicated Private for Past 3 Years Since Inception Wealth Employees Please see endnotes for additional information. 130
Slide 131: What's next?
What’s next? We will continue redefining alternatives for the individual investor
Slide 132: There Is Significant Growth Potential Across Our Largest Markets
There Is Significant Growth Potential Across Our Largest Markets Deepen Penetration in North America Further our Global Expansion Blue Owl US annual sales doubled since 2021, but the US While Blue Owl global annual sales grew +5.5x since 2021, wealth channel remains significantly under allocated to
Slide 133: We have a Proven Playbook That Will Be Applied to New Strategies
We have a Proven Playbook That Will Be Applied to New Strategies Attributes at Close Wealth Initiatives Wealth Impact Differentiated Established Multi-trillion Limited Wealth Diversify and Create +$11bn $34bn investment addressable scale flagship dedicated track record resources approach market fund
Slide 134: Significant Barriers to Entry Are a Catalyst for M&A
Significant Barriers to Entry Are a Catalyst for M&A Alternative asset managers looking to access private The Blue Owl Private Wealth Difference wealth are increasingly looking for partners 79% don’t have a dedicated Our team private wealth team Our track record 75% don’t have a dedicated strategy f
Slide 135: New Frontiers Will Continue to Drive Growth
New Frontiers Will Continue to Drive Growth New Frontiers Model Tax-Advantaged Strategic Retirement Portfolios Solutions Partnerships ~ $30tn $12tn ~ ~$50tn ~ $47tn Retirement Managed Estimated U.S. Market Accounts Real Estate Households Assets and Insurance Mutual Fund Assets and Equity Investments
Slide 136: Key Takeaways For Today
Key Takeaways 1 2 3 For Today The Private Wealth opportunity remains We were early believers in the opportunity, and Given the barriers to entry, we believe there in the early innings, our incumbency is will be a handful of and the addressable reflected in our continued scaled players and we market
Slide 137: Financial Review & Outlook
Financial Review & Outlook Alan Kirshenbaum Chief Financial Officer 137
Slide 138: Significant Growth in AUM Since Our Listing
Significant Growth in AUM Since Our Listing AUM FPAUM Permanent Capital ($ billions) ($ billions) ($ billions) 49% 251 46% 160 41% 191 CAGR CAGR CAGR 57 62 43 At Listing1 2024 At Listing 1 2024 At Listing 1 2024 Growth of ~4x in AUM & FPAUM in less than 4 years 138
Slide 139: Industry Leading FRE Management Fees, FRE Revenues and FRE Growth
Industry Leading FRE Management Fees, FRE Revenues and FRE Growth FRE Management Fees FRE Revenues Fee Related Earnings ($ millions) ($ millions) ($ millions) 34% 32% 37% CAGR 2,171 CAGR 1,253 CAGR 2,038 998 1,660 1,568 800 1,322 1,249 900 547 792 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 20
Slide 140: We Have a Differentiated Business Model and Financial Profile
We Have a Differentiated Business Model and Financial Profile ✓ 100% of earnings are FRE ✓ Permanent capital base creates earnings layer cake ✓ 90+% of FRE Management Fees from permanent capital vehicles Predictable, durable and highly ✓ Best-in-class average fee rate visible earnings growth with le
Slide 141: Our FRE Management Fees Have Grown for 15 Consecutive Quarters
Our FRE Management Fees Have Grown for 15 Consecutive Quarters Growth and stability through market cycles SOFR / DL Spreads1 FRE Mgmt Fees (bps) ($mn) 700 600 600 500 5,882 500 400 400 3,973 300 300 200 200 100 100 0 - 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'
Slide 142: Part I Fees Have Grown Meaningfully Through Different Market Cycles
Part I Fees Have Grown Meaningfully Through Different Market Cycles SOFR / DL Spreads1 (bps) 30+% Part I Fees ($mn) Resilient growth through market cycles due to: CAGR 700 160 600 140 • Strength of wealth fundraise 500 120 • Deployment of capital 100 400 80 300 60 200 100 bps change in SOFR 40 impac
Slide 143: Our FRE Management Fee Growth Is Significantly Outpacing Our Peers
Our FRE Management Fee Growth Is Significantly Outpacing Our Peers 2.5x Peer Avg. 3.1x 37% Peer Avg. 2.1x Peer Avg. 30% Since 2021, our FRE 26% Management Fee growth 22% has been 2.5x the peer 19% average and 1.7x the 15% 15% highest peer 12% 10% 2023 2024 2021 - 2024 CAGR Blue Owl Peer Average1 Hig
Slide 144: The Permanency and Duration of Our Capital Base Is Distinct
The Permanency and Duration of Our Capital Base Is Distinct Permanent Capital AUM Duration of FRE Management Fees Embedded Earnings Power ($ billions) $23bn of AUM not yet paying fees will drive 3.4x 191 20 ~$300m of FRE Management Fees upon deployment 66 91% from ~$135m of incremental annualized 9%
Slide 145: Our Earnings Are Not Subject to Much of the Market Volatility Our Peers Are
So Our Earnings Are Not Subject to Much of the Market Volatility That Our Peers Are Distributable Earnings Growth (Indexed to 100) 300 Earnings durability through… 250 ✓ inflationary periods 200 ✓ geopolitical events 150 ✓ rate volatility ✓ significant slowdowns 100 in capital markets activity 50 -
Slide 146: Our Leading Private Wealth Franchise Is Well Positioned for Future Growth
Our Leading Private Wealth Franchise Is Well Positioned for Future Growth Total Private Wealth Fundraise Evergreen Wealth Product Fundraise1 Large and growing market opportunity, ($ billions) ($ billions) but significant barriers to entry Scaled, established participants like 3.5x 13.7 6.0x 9.8 Blue
Slide 147: Our Closed-End Flagship Funds Have Been Scaling
Our Closed-End Flagship Funds Have Been Scaling GP Stakes - Large Cap Equity Real Assets - Net Lease Real Assets - Digital Infrastructure ($ billions) ($ billions) ($ billions) 13.0 12.9 Target Exceeded Hard Cap 7.0 9.0 Target 5.2 5.3 3.8 2.5 2.2 1.3 1.5 1.3 0.5 0.1 Vintage Vintage Vintage Vintage V
Slide 148: Our Direct Lending BDCs Have Grown to $79bn of AUM
Our Direct Lending BDCs Have Grown to $79bn of AUM ($ billions) 79 23 60 50 19 15 33 8 56 22 16 5 42 12 35 3 25 7 2 3 17 10 12 7 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029 Diversified Lending BDCs Software Lending BDCs Projections and forward-looking statements are based on various assumption
Slide 149: Insurance Solutions Provides Us with Another Scaled Distribution Channel
Insurance Solutions Provides Us with Another Scaled Distribution Channel That Is Poised for Significant Growth Balance Sheet Light Our differentiated strategy and capabilities… …enable significant growth opportunities World class team and resources Platform designed to scale Downside-protected, inco
Slide 150: Our Strategies That Existed As of Our Last Investor Day
Our Strategies That Existed As of Our Last Investor Day Length of Track Record1 2010 2015 2020 AUM Today Direct Lending 2016 $98bn GP Strategic Capital2 2011 $66bn Net Lease 2009 $34bn 150
Slide 151: Our Strategies Today
Our Strategies Today Diversification into the largest growth areas of alternatives with the benefit of long track records of success Length of Track Record1 2010 2015 2020 AUM Today Direct Lending 2016 $98bn GP Strategic Capital2 2011 $66bn Net Lease 2009 $34bn Liquid Credit & Other 2015 2023 $10bn
Slide 152: We Have a Playbook and Track Record of Growing Our Acquired Businesses
We Have a Playbook and Track Record of Growing Our Acquired Businesses Oak Street Net Lease At Signing1 Today 250 3x + AUM $12.4bn 2.7x $33.9bn 200 Permanent $4.7bn 3.0x $14.3bn 150 Capital Fee Rate ~80 bps +35% 108 bps 100 Fund V Fund VI 50 Fund Size 2.1x $2.5bn $5.2bn 2020 Vintage 2022 Vintage 0 W
Slide 153: We Expect to More Than Double Key Metrics Over the Next 5 Years
We Expect to More Than Double Key Metrics Over the Next 5 Years FRE Management Fees Fee Related Earnings AUM ($ billions) ($ billions) ($ billions) 20+% 5.1+ 20+% 3.1+ 2x+ 500+ CAGR CAGR Growth 251 2.0 1.3 2024 2029 Target 2024 2029 Target 2024 2029 Target Projections and forward-looking statements
Slide 154: Drivers of Our Future Growth
Drivers of Our Future Growth Credit GP Strategic Capital Real Assets • List merged Software Lending BDC • Continued market leadership and • Continued strong fundraise into our Core Growth • Continued strong fundraise across fundraise of our large cap GP Minority Net Lease wealth product (ORENT) Driv
Slide 155: Drivers of Our Future Growth
Drivers of Our Future Growth FRE Management Fees Core Growth Drivers Strong fundraise across wealth products 1 ▪ Direct Lending (OCIC & OTIC) Assume $10bn to 2.5x $5.1 bn + ▪ Net Lease (ORENT) $15bn+ raised per Growth ▪ Launch of an Alternative Credit Interval Fund year across products ▪ Launch of a
Slide 156: We Believe Our AUM Will Exceed $500 Billion by 2029…
We Believe Our AUM Will Exceed $500 Billion by 2029… ($ billions) 500+ Credit 2x+ GPSC Real Assets 4x growth in less than 4 years 251 49 166 138 66 27 21 94 54 62 15 49 40 136 31 85 69 31 39 At Listing 2021 2022 2023 2024 2029 Target …and remember, the AUM that we raise is very different than our pe
Slide 157: Our Velocity of Capital Is Different Than Our Peers
Our Velocity of Capital Is Different Than Our Peers OWL Peer Avg 1 FPAUM Raised 1,000 1,000 (-) Capital Distributed (325) (500) Every $1 raised by = FPAUM Retained 675 500 OWL generates 3x FPAUM Retained 67% 50% More capital retained more FRE than $1 raised by our peers on Average Fee Rate ~140 bps
Slide 158: Maximizing Shareholder Value and Maintaining Our Balance Sheet Light Model
We Continue to Focus on Maximizing Shareholder Value and Maintaining Our Balance Sheet Light Model Since Last Investor Day… Balance Sheet Light Model Since Our Last Investor Day Since Our Last Investor Day ✓ Inclusion in the Russell Indices ✓ Less capital intensive Since Our Last Investor Day ✓ Regi
Slide 159: Shareholder Value Creation Since Our Last Investor Day
Shareholder Value Creation Since Our Last Investor Day Last Investor Day January 31, 2025 May 2022 $15.5+ bn of Public Float 24% of Shares 40% of Shares current float 140%+ total return Stock Price $11.24 per share1 $26.01 per share with dividends Dividend Type Variable Fixed Expanded shareholder ba
Slide 160: Key Takeaways
Key Takeaways We expect to grow our FRE Management Fees and FRE by a 20+% CAGR over the next 5 years 1 We expect to more than double our AUM to $500bn+ by 2029 2 We can replicate the growth of our net lease business with Atalaya, IPI, and others We are well positioned in the largest secular growth a
Slide 161: Diversification Innovation Scale
Diversification More than 2x growth in all key Innovation metrics including Scale stock price 161
Slide 162: Q&A
Q&A 162
Slide 163: Endnotes
Endnotes 163
Slide 164: Endnotes
Endnotes Page 5 – Our Shareholder Base Has Meaningfully Changed Since Listing 1. Based on latest available public data as of 12/31/24. Page 6 – Over the Past 3 Years… 1. Represents close price on 5/19/22. Page 11 – Blue Owl Evolution Since Listing 1. At Listing metrics as of 6/30/21; FRE Revenue is
Slide 165: Endnotes
Endnotes Page 19 - Blue Owl Is Levered to the Largest Secular Growth Trends in Alternatives Sources: Direct Lending Industry AUM: Preqin Future of Alternatives Alternative Credit Addressable Market: Federal Reserve Z.1 Financial Accounts of the United States Q3 2023, FRB NY Quarterly Report on House
Slide 166: Endnotes
Endnotes Page 25 – As the Industry Consolidates, Blue Owl’s Scale Is Even More Valuable to Potential Partners 1. Represents baseline of 9/30/21. Page 32 - We Believe Our Stock Has Meaningful Upside Potential 1. Based on Visible Alpha consensus estimates, pulled on 1/28/25 Peer group includes Apollo
Slide 167: Endnotes
Endnotes Page 40 – Growth Has Been Driven by Our Leading BDC Platform 1. Reflects merger of OBDC and OBDE in January 2025. 2. Diversified statistics reflect Blue Owl Capital Corporation as a representative diversified lending portfolio. 3. Tech statistics reflect Blue Owl Technology Finance Corp. as
Slide 168: Endnotes
Endnotes Page 52 - Why Now? A Large and Underpenetrated Market Sources: Estimated Addressable ABF Market: Federal Reserve Z.1 Financial Accounts of the United States Q3 2023, FRB NY Quarterly Report on Household Debt and Credit November 2023, SIFMA statistics Q3 2023, Secured Finance Foundation 2023
Slide 169: Endnotes
Endnotes Page 65 – High Quality Performance Over Multiple Vintages 1. Net Blended MOIC formula: (Cash Distributed to LPs + LP NAV) / (ITD LP Called Capital) as of the reporting date. Net Blended MOIC is presented on a cumulative basis and is not annualized. Net Blended MOIC includes the cash flows a
Slide 170: Endnotes
Endnotes Page 68 - We Remain the Clear Market Leader in GP Minority Stakes 1. Includes capital raised for GP Stakes Fund VI and the GP Stakes Advantage Fund as of 12/31/2024. Dotted line denotes target size. Sources: Company announcements and Preqin Pro (fund series analysis) as of 1/08/2025 Page 69
Slide 171: Endnotes
Endnotes Page 79 - We See a Generational Opportunity in Digital Infrastructure Sources: Hyperscale Capex: RBC Generative AI Update (November 2024), Company Filings: 10Ks (2017), The Official Microsoft Blog (January 2025) Global Data Center Demand: RBC Datacenter Download (June 2024) Page 80 – A Reco
Slide 172: Endnotes
Endnotes Page 86 – Investing Behind Significant Secular Themes Requiring Scaled Capital Sources: Digital Infrastructure: McKinsey “AI power: Expanding data center capacity to meet growing demand” Manufacturing spend: FRED Economic Data, U.S. Census Bureau as of October 31, 2023 Semiconductor market:
Slide 173: Endnotes
Endnotes Page 100 - Real Assets Has Been Our Fastest Growing Platform… And We Think That Can Continue 1. “Investor Day 2022” data are as of 3/31/22. Page 105 - Our Hybrid M&A Strategy Is a Complement to Robust Organic Growth 1. Market Cap as of 12/31/24 using stock price of $23 is approximately $35B
Slide 174: Endnotes
Endnotes Page 123 - The Private Wealth Opportunity Set Is Enormous and Still in the Early Innings Sources: Assets: PwC Asset and wealth management revolution 2024. Unleashing the transformative power of disruptive technology. November 2024 Institutional Allocation: Preqin Institutional Allocation St
Slide 175: Endnotes
Endnotes Page 135 - New Frontiers Will Continue to Drive Growth Sources: Retirement TAM is representing by retirement assets excluding defined benefit plans. ICI Quarterly Retirement Market Data 3Q24. Model Portfolios: TAM is the estimated amount of model portfolios AUM. Cerulli Associates Data. Mar
Slide 176: Endnotes
Endnotes Page 146 - Our Leading Private Wealth Franchise Is Well Positioned for Future Growth 1. Includes all fundraise from OCIC, OTIC & ORENT/OREX. Page 150 - Our Strategies That Existed As of Our Last Investor Day 1. Length of track record includes length of time before Blue Owl acquired business
Slide 177: Non-GAAP Reconciliations
Non-GAAP Reconciliations 177
Slide 178: Non-GAAP Measures
Non-GAAP Measures Fee-Related Earnings, or FRE, and Related Components Fee-Related Earnings is a supplemental non-GAAP measure of our core operating performance used to make operating decisions and assess our core operating results, focusing on whether our core revenue streams, primarily consisting
Slide 179: Non-GAAP Reconciliations
Non-GAAP Reconciliations Last Twelve Months (dollars in thousands) 4Q'24 3Q'24 4Q'23 4Q'22 Adj. 1Q'22 Adj. 4Q'21 GAAP Net Income (Loss) Attributable to Class A Shares $ 109,584 $ 106,899 $ 54,343 $ (9,289) $ (427,400) $ (376,171) Net income (loss) attributable to noncontrolling interests 310,862 323
Slide 180: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended (dollars in thousands) 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 GAAP Net Income Attributable to Class A Shares $ 20,743 $ 29,805 $ 33,945 $ 25,091 $ 18,058 $ 15,109 $ 12,859 $ 8,317 Net income attributable to noncontrolling interests 50,312 69,5
Slide 181: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended (dollars in thousands) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 Adj. 2Q'21 GAAP Net Income (Loss) Attributable to Class A Shares $ 1,592 $ 2,060 $ (1,126) $ (11,815) $ 82 $ (53,323) $ (362,344) Net income (loss) attributable to noncontrolling interests 163
Slide 182: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended Last Twelve Months (dollars in thousands) 4Q'24 Adj. 2Q'21 4Q'24 4Q'23 4Q'22 Adj. 4Q'21 GAAP Revenues $ 631,361 $ 179,260 $ 2,295,427 $ 1,731,608 $ 1,369,722 $ 823,878 Incremental revenues assuming the Business Combination closed on 1/1/21 - 41,381 - -
Slide 183: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Quarter Ended (dollars in thousands) 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 GAAP Management Fees $ 557,103 $ 523,309 $ 465,754 $ 447,898 $ 410,578 $ 386,009 $ 371,829 $ 358,825 Incremental management fees assuming the Business Combination closed on 1/1/21 -
Slide 184: Defined Terms
Defined Terms 184
Slide 185: Defined Terms
Defined Terms Annualized Loss Ratio Refers to the average annual loss rate based on total annual net realized losses divided by the average aggregate quarterly cost of investments. The loss rate is based on the average loss rates in each year since inception. Assets Under Management or AUM Refers to
Slide 186: Defined Terms (cont'd)
Defined Terms (cont’d) GAAP Refers to U.S. generally accepted accounting principles. GFC Refers to the global financial crisis. GP Strategic Capital Refers to our GP Strategic Capital platform that primarily focuses on acquiring equity stakes in, and providing debt financing to, large, multi-product