Blue Owl Capital (OWL) Goldman Sachs U.S. Financial Services Conference summary

Strategic priorities and execution for 2026

• Focus shifts from diversification and integration to execution, targeting gradual margin improvement and increased FRE per share over time.

• Fundraising remains a key lever, with several flagship funds in the market, including a $7.5B triple net lease fund and a digital infrastructure fund expected to be materially larger in its next round.

• Recent acquisitions in digital infrastructure and alternative credit have scaled quickly, with both products now in the wealth channel and poised for significant growth.

• Deployment lagged expectations in the past year, but there is cautious optimism for improvement as M&A activity picks up.

Fund performance and portfolio trends

• Underlying portfolio companies are performing well, with average EBITDA of $275M and loan-to-value ratios of 39% for corporate credit and 30% for software loans.

• Revenue and EBITDA growth have moderated slightly to 7.5%-8%, but defaults remain very low and portfolio quality is robust.

• For large-cap software loans, even with significant market drawdowns, loan-to-value remains conservative and no losses have been recorded over nine years.

• Private credit funds aim to deliver 150-250 basis points over syndicated loans, with current secured loan yields around 9%.

Wealth channel expansion and product innovation

• Wealth channel has grown to over 200 people globally, with $16B in inflows over the past year and a strong presence in the US, Europe, and Asia.

• Product suite remains focused but is expanding, with new launches in digital infrastructure and alternative credit, both showing rapid early growth.

• Triple net lease fund is a top performer, with a large backlog and unique ability to deliver large-scale solutions to major platforms.

• Approach to new product launches involves early consensus-building with major wirehouses and advisors.