Q3 2025 Blue Owl Capital Inc Earnings Call Transcript
Key Points
- Blue Owl Capital Inc (OWL) reported strong growth in the third quarter of 2025, with fee-related earnings of $0.24 per share and distributable earnings of $0.22 per share.
- The company achieved a record last 12-month capital raise of $57 billion, reflecting a 24% increase in assets under management from a year ago.
- Blue Owl Capital Inc (OWL) has strategically positioned itself to benefit from shifts in investor focus towards credit and digital infrastructure, with significant growth anticipated from recent acquisitions.
- The company's credit portfolio remains healthy, with an average annual realized loss of just 13 basis points and no signs of meaningful stress.
- Blue Owl Capital Inc (OWL) continues to expand its product offerings, including a new digital infrastructure semi-liquid product and alternative credit interval funds, attracting significant investor interest.
- There are concerns about potential dilution from growth investments, with questions about when these will stop impacting FRE growth and margins.
- The company faces challenges in addressing market perceptions, as its stocks are trading at a discount to peers despite strong fundamentals.
- Recent headlines about idiosyncratic credit issues in the market have raised broader questions about the health of corporate and asset-backed credit markets.
- The company experienced a fee step down on a portion of the AUM in net lease Fund VI, impacting management fee growth in the Real Assets platform for the third quarter.
- There is a need for continued vigilance in credit investing, as highlighted by recent instances of fraud in the industry, although Blue Owl Capital Inc (OWL) has no direct exposure to these cases.
Good morning, and welcome to Blue Owl Capital's third-quarter 2025 earnings call. (Operator Instructions) I'd like to advice all parties, this conference call is being recorded.
I will now turn the call over to Ann Dai, Head of Investor Relations for Blue Owl.
Thanks, operator, and good morning to everyone. Joining me today are Marc Lipschultz, our co-Chief Executive Officer; and Alan Kirshenbaum, our Chief Financial Officer.
I'd like to remind our listeners that remarks made during the call may contain forward-looking statements, which are not a guarantee of future performance or results and involve a number of risks and uncertainties that are outside the company's -- actual results may differ materially from those forward-looking statements as a result of a number of factors, including those described from time to time in Blue Owl Capital's filings with the Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statements.
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