Blue Owl Capital (OWL) Q3 2024 earnings summary

Executive summary

• Assets under management reached $235 billion as of September 30, 2024, up 50% year-over-year, driven by acquisitions and capital raised.

• Reported Q3 2024 fee-related earnings of $326.9M ($0.22 per share), distributable earnings of $301.0M ($0.20 per share), and GAAP net income of $29.8M.

• Achieved 14 consecutive quarters of management fee and FRE growth, with management fees up over 25% and revenues up more than 30% year-over-year.

• Closed Kuvare and Atalaya acquisitions, adding over $30B in AUM; announced IPI Partners acquisition to expand digital infrastructure presence.

• Declared a quarterly dividend of $0.18 per share, with a 2024 annual dividend of $0.72 per share, up 29% from 2023.

Financial highlights

• Q3 2024 total revenues were $600.9M, up 40% year-over-year; management fees for the last twelve months were $1.89B, up 26% year-over-year.

• Raised $7.9B in equity in Q3 and $24.2B over the last twelve months, a 67% increase year-over-year.

• Gross originations in credit reached $10.9B for Q3 and $47B for the last twelve months; net funded deployment was $4.3B in Q3.

• Real estate net lease pipeline exceeded $22B in transaction volume under LOI or contract.

• AUM not yet paying fees was $21.7B, representing over $260M in future annual management fees.

Outlook and guidance

• Projecting mid-20% growth in FRE for 2024 and 2025, with similar growth rates for management fees and revenues.

• Expecting a 2025 dividend closer to $0.90 per share, reflecting a conservative approach due to SOFR rate volatility and capital flexibility for growth.

• IPI Partners acquisition (approx. $10.5B AUM) expected to close in Q4 2024 or Q1 2025.

• FRE margin guidance for 2025 is 57–58% gross of NCI, with a long-term path to 60%.

• Management expects continued growth, leveraging a durable permanent capital base and expanding into multi-trillion dollar markets.