Q: What is Blue Owl Capital (OWL) Q2 2024 Earnings Call Transcript Summary?
**Blue Owl Capital Inc. (OWL) Q2 2024 Earnings Call Summary**
**Bullish Points:**
1. Blue Owl reported another record quarter of earnings and announced highly strategic acquisitions that further diversify their business.
2. Over the last 12 months, Blue Owl generated 23% fee-related earnings growth and 19% distributable earnings growth from the prior-year period.
3. The company has had 13 consecutive quarters of management fee and FRE growth, highlighting the stability and strength of their business.
4. Blue Owl announced the acquisition of Atalaya Capital Management, adding substantial scale to their alternative credit capabilities.
5. The Oak Street acquisition in 2021 has grown from $12 billion to more than $28 billion of AUM in triple net lease alone.
6. Blue Owl raised $32 billion across equity and debt over the past 12 months, equivalent to over 20% of their AUM a year ago.
7. In credit, Blue Owl had a record quarter of deployment with more than $18.7 billion of gross originations.
8. Direct lending metrics remain strong with underlying revenue growth in the high single digits and EBITDA growth in the mid-teens across the portfolio.
9. Blue Owl's GP stakes business partner managers now manage over $1.8 trillion, giving them an unparalleled view over the alternative asset management industry.
10. The company made their first investment for their mid-cap GP stake strategy and have two additional investments agreed to in principle.
**Bearish Points:**
1. Blue Owl's stock price dropped by 9.91%.
2. The Atalaya acquisition is margin dilutive for Blue Owl, with margins well below current levels.
3. Expected slight decrease in margins for the remainder of the year and for 2025.
4. The management fee trend in the quarter was disappointing relative to the positive FP AUM inflow and AUM surprise.
5. There were some closings at the very end of the quarter, which did not have time to accrete in for the quarter, affecting the management fee trend.
6. There is concern that Part 1 fees could come under greater pressure due to rate cuts and loan spreads tightening.
7. The Atalaya transaction has a lower margin, which may cause slight downward momentum before margins swing back up.
8. Pluralsight's performance is disappointing, although it is a small loan relative to the overall portfolio.
For more information about Blue Owl Capital Inc.'s earnings call, you can read the relevant news: Blue Owl Capital (OWL) Q2 2024 Earnings Call Transcript
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