Blue Owl Capital 3Q Growth Driven by Fee-Related Earnings

Blue Owl Capital reported growth in the third quarter, helped by an increase in fee-related earnings as assets under management reached a record high.

Blue Owl on Thursday posted net income of about $20 million, or 3 cents a share, up from $6.31 million, or 1 cent a share, in the year-earlier period.

Distributable earnings, a closely tracked metric for publicly traded investment firms who pay dividends, climbed to $385.5 million, or 24 cents an adjusted share.

Fee-related earnings, another metric watched by analysts, rose to $427.5 million, or 27 cents an adjusted share, from $376.2 million, or 22 cents an adjusted share, in the same quarter last year.

The growth reflects the firm's expanding asset base, which reached $330 billion as of Sept. 30. The company said its permanent capital model continues to drive stable management fees, with 85% of fee-related management fees coming from permanent capital sources.

Total revenue rose 11% to $806.5 million, while total assets under management increased 12% to $329.9 billion.

"We had a record institutional capital raising quarter with growth coming from an increasingly broad set of strategies, investors, and geographies," Co-Chief Executives Doug Ostrover and Marc Lipschultz said. "During markets characterized by volatility and uncertainty, our focus on income-oriented returns with an emphasis on downside protection becomes even more top of mind for investors, and our scaled and partnership-driven approach to investing becomes increasingly valuable to our borrowers, tenants, and counterparties."

New capital commitments stood at $12.6 billion in the latest period while fee-paying assets under management raised and deployed came in at $4 billion in the quarter.

Total equity fundraising of $10.2 billion was driven by $5.6 billion in credit, $4 billion in real-estate assets, and $600 million in its GP Strategic Capital platform.

Blue Owl's real assets platform posted the fastest growth among the firm's three main business lines in the third quarter. Assets under management in the segment reached $94.9 billion, up 27% from a year earlier.