Blue Owl Capital (OWL) investor relations material

Macro and industry outlook

• Anticipates a robust M&A market in 2026, supporting strong deployment and inflows, with private credit expected to benefit from elevated activity.

• Tight credit spreads and active banks are noted, but alternative managers continue to deliver 200-300 basis points over syndicated markets.

• Digital infrastructure backlog is at record levels, and real asset investment opportunities are strong.

Strategic priorities and execution

• No major acquisitions planned for 2026; focus shifts to execution and margin improvement following a period of integration.

• Margins are expected to improve gradually, with FRE per share growth modestly better than 2025 and acceleration targeted for 2027.

• Fundraising remains a key focus, with targets to complete GP Stakes and real estate flagship funds, and new digital infrastructure fundraising in the second half.

• Recent acquisitions have been quickly integrated into the wealth channel, driving strong capital formation.

Deployment and product outlook

• Deployment in private credit is closely tied to M&A cycles, with elevated activity expected if M&A increases.

• Digital infrastructure investments are structured as long-term leases with top-tier tech companies, offering attractive risk-adjusted returns.

• No current private credit lending to data centers; exposure is through real asset leases with investment-grade tenants.

• Asset-backed finance (ABF) business, bolstered by the Atalaya acquisition, is off to a strong start with significant capital raised and high returns.