Blue Owl Capital Inc. Second Quarter 2024 Results

Rhea-AI Summary

Blue Owl Capital Inc. (NYSE: OWL) reported strong financial results for Q2 2024, with management fee growth exceeding 20% year-over-year for every quarter since going public. The company achieved record levels of deployment, strong pipelines, and robust fundraising across various strategies and products. Blue Owl announced an agreement to acquire Atalaya Capital Management's business, expanding its capabilities in alternative credit and asset-based finance. The company declared a quarterly dividend of $0.18 per Class A Share, payable on August 30, 2024. Blue Owl's Co-CEOs, Doug Ostrover and Marc Lipschultz, expressed confidence in the company's positioning within major trends driving alternative asset management growth.

Positive

• Management fee growth exceeded 20% year-over-year for every quarter since going public
• Record levels of deployment achieved in Q2 2024
• Strong pipelines and robust fundraising across various strategies and products
• Agreement to acquire Atalaya Capital Management's business, expanding capabilities in alternative credit and asset-based finance

Negative

• None.

Insights

Financial Analyst

Blue Owl Capital's Q2 2024 results showcase a company on a strong growth trajectory, with management fee growth consistently exceeding 20% year-over-year since going public. This performance is particularly impressive given the challenging macroeconomic environment many asset managers are facing.

The company's recent agreement to acquire Atalaya Capital Management is a strategic move that could significantly enhance Blue Owl's market position. By expanding into alternative credit and asset-based finance, Blue Owl is tapping into a multi-trillion dollar market with substantial growth potential. This diversification could provide a buffer against market volatility and open up new revenue streams.

The declared quarterly dividend of $0.18 per Class A Share represents a commitment to shareholder returns, which is often viewed positively by investors. However, without specific financial figures, it's challenging to assess the sustainability of this dividend or how it compares to the company's earnings.

While the overall tone of the release is optimistic, investors should note the absence of concrete financial metrics such as AUM growth, revenue, or profit figures. This lack of specificity raises questions about the actual financial performance beyond the management fee growth highlight. As we move forward, it will be important to see how Blue Owl translates its strategic moves and market positioning into tangible financial results.

Market Research Analyst

Blue Owl's Q2 2024 results highlight the company's strategic positioning within the alternative asset management space. The firm's consistent 20%+ year-over-year management fee growth is a strong indicator of its ability to attract and retain capital, even in a competitive market environment.

The acquisition of Atalaya Capital Management is particularly noteworthy. This move into alternative credit and asset-based finance aligns with broader industry trends, as investors increasingly seek yield in non-traditional asset classes. By expanding its product offerings, Blue Owl is positioning itself to capture a larger share of investor allocations across various market cycles.

The company's mention of "record levels of deployment" and "robust fundraising" suggests a healthy deal pipeline and strong investor demand. However, without specific figures, it's difficult to quantify the scale of this success or compare it to industry peers.

Blue Owl's strategy of offering a wide array of solutions across alternative assets could prove advantageous as institutional investors continue to increase their allocations to alternatives. This diversification may help the firm weather potential market downturns better than more specialized competitors.

Looking ahead, investors should watch for how successfully Blue Owl integrates Atalaya and leverages its capabilities to drive growth. The true test will be whether the firm can maintain its impressive growth trajectory while scaling its operations and entering new markets.

NEW YORK, Aug. 1, 2024 /PRNewswire/ -- Blue Owl Capital Inc. (NYSE: OWL) ("Blue Owl") today reported its financial results for the second quarter ended June 30, 2024.

"Blue Owl continues to demonstrate exceptionally strong and stable growth, with LTM management fee growth exceeding 20% year over year in every quarter we've been public. The second quarter of 2024 was very active, with record levels of deployment, strong pipelines, and robust fundraising across a growing array of strategies and products," said Doug Ostrover and Marc Lipschultz, Co-CEOs of Blue Owl. "We recently announced our agreement to acquire Atalaya Capital Management's business, instantly expanding and scaling our capabilities in alternative credit and asset-based finance capabilities, a multi-trillion dollar market with a long runway for growth. Atalaya is a high-quality manager with a great track record over market cycles, and we see significant opportunity to grow this business together. Organically and inorganically, Blue Owl is quickly building up the waterfront of solutions we offer, positioning ourselves within many of the major trends that we expect to drive alternative asset management growth for the foreseeable future."

Blue Owl issued its full detailed presentation of its second quarter ended June 30, 2024 results, which can be viewed through the Investor Resources section of Blue Owl's website at https://ir.blueowl.com/Investors/events-and-presentations. 

Dividend

Blue Owl declared a quarterly dividend of $0.18 per Class A Share, payable on August 30, 2024, to shareholders of record at the close of business on August 21, 2024. 

Quarterly Investor Call Details:

Blue Owl will host its second quarter 2024 investor call via public webcast on August 1, 2024 at 10:00 a.m. ET. To register, please visit the Investor Resources section of Blue Owl's website at https://ir.blueowl.com/overview.

The conference call may be accessed by dialing +1 (888) 330-2454 (U.S. callers) or +1 (240) 789-2714 (non-U.S. callers); conference ID 4153114. For those unable to listen to the live broadcast, there will be a webcast replay available on the Investor Resources section of Blue Owl's website.

All callers will need to enter the Conference ID followed by the # sign and reference "Blue Owl Capital" once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected.

About Blue Owl

Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives.

With over $192 billion in assets under management as of June 30, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 820 experienced professionals, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com. 

Forward Looking Statements

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "would," "should," "future," "propose," "target," "goal," "objective," "outlook" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date made. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blue Owl's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, among others, that may affect actual results or outcomes include the inability to recognize the anticipated benefits of strategic acquisitions; costs related to acquisitions; the inability to maintain the listing of Blue Owl's shares on the New York Stock Exchange ("NYSE"); Blue Owl's ability to manage growth; Blue Owl's ability to execute its business plan and meet its projections; potential litigation involving Blue Owl; changes in applicable laws or regulations; and the possibility that Blue Owl may be adversely affected by other economic, business, geo-political and competitive factors.

Investor Contact
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com 

Media Contact
Nick Theccanat
Principal, Corporate Communications & Government Affairs
Nick.Theccanat@blueowl.com 

 

View original content:https://www.prnewswire.com/news-releases/blue-owl-capital-inc-second-quarter-2024-results-302210883.html

SOURCE Blue Owl Capital

FAQ

What was Blue Owl Capital's (OWL) management fee growth in Q2 2024?

Blue Owl Capital (OWL) reported management fee growth exceeding 20% year-over-year for every quarter since going public, including Q2 2024.

What is the quarterly dividend declared by Blue Owl Capital (OWL) for Q2 2024?

Blue Owl Capital (OWL) declared a quarterly dividend of $0.18 per Class A Share, payable on August 30, 2024, to shareholders of record at the close of business on August 21, 2024.

What significant acquisition did Blue Owl Capital (OWL) announce in Q2 2024?

Blue Owl Capital (OWL) announced an agreement to acquire Atalaya Capital Management's business, expanding its capabilities in alternative credit and asset-based finance.

When will Blue Owl Capital (OWL) host its Q2 2024 investor call?

Blue Owl Capital (OWL) will host its Q2 2024 investor call via public webcast on August 1, 2024, at 10:00 a.m. ET.