Blue Owl Capital (OWL) Q4 2024 earnings summary

Executive summary

• Achieved record fundraising in 2024, raising $27.5B in equity and $47B in total capital, with AUM ending at $265B pro forma for IPI acquisition and over $250B reported, up 52% year-over-year, driven by acquisitions and capital raising.

• Fee-related earnings (FRE) grew 26% year-over-year, with FRE per share at $0.86 and distributable earnings (DE) per share at $0.77 for the full year; Q4 FRE was $0.23 per share and DE was $0.21 per share.

• Declared a Q4 dividend of $0.18 per share and set a 2025 annual fixed dividend of $0.90 per share, a 25% increase over 2024.

• Business diversification and scale enhanced by product innovation, strategic M&A, and expanded investor touchpoints.

• GAAP Net Income for Q4 2024 was $20.7M ($0.03 per share); full-year Net Income attributable to Class A Shares was $109.6M, up from $54.3M in 2023.

Financial highlights

• Management fees increased 30% year-over-year, with 91% from permanent capital vehicles; FRE margin for 2024 was 59%.

• GAAP revenues for Q4 2024 were $631.4M, up 28% year-over-year; full-year revenues were $2.3B, up 33%.

• Credit portfolio gross returns were 3.1% in Q4 and 13.9% for the year; real estate portfolio gross returns were flat in Q4 and 4% for the year.

• Net IRR for GP stakes funds: 22% (Fund III), 39% (Fund IV), 19% (Fund V); net IRR for fully realized net lease fund was 24%.

• Cost of debt was 3.8%; average debt maturity ~10 years; $1.7B available liquidity.

Outlook and guidance

• Expecting a meaningful increase in fundraising for 2025, with new products and platforms launching and a dynamic 5-year growth plan to be presented.

• FRE revenue growth for 2025 guided to upper 20% or more; FRE per share growth expected at about 20%.

• Effective tax rate expected in mid to high single digits for 2025, rising slightly in subsequent years.

• $22.6B of AUM not yet paying fees, representing over $300M of incremental annual management fees once deployed.

• Emphasis on continued expansion in scale and solutions for counterparties and investors.