Blue Owl Capital (OWL) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 earnings and net income of $33.9 million, up 164% year-over-year, with 13 consecutive quarters of management fee and fee-related earnings growth, driven by strong investor demand and a durable asset base anchored by permanent capital.

• Assets under management (AUM) reached $192.2 billion as of June 30, 2024, a 28% increase year-over-year, fueled by robust fundraising and strategic acquisitions including Prima, Kuvare, and the announced Atalaya Capital Management deal.

• Demonstrated robust fundraising, raising $5.4 billion in Q2 and $19.2 billion over the last 12 months, with significant inflows from both private wealth and institutional channels.

• Annual dividend for 2024 increased 29% to $0.72 per Class A Share, with a quarterly dividend of $0.18 per share declared for Q2.

Financial highlights

• Q2 2024 fee-related earnings (FRE) were $296.5 million ($0.21 per share), up 21% year-over-year; distributable earnings were $273.0 million ($0.19 per share), up 20% year-over-year.

• Q2 2024 GAAP revenues were $549.8 million, up 32% year-over-year; management fees, net, for Q2 were $465.8 million.

• FRE margin for Q2 2024 was 59%; GAAP margin was 28%.

• Gross originations in credit reached a record $18.7 billion in Q2, with net funded deployment of $7.2 billion.

• Credit portfolio returned 3% in Q2 and 16.4% over the last 12 months; real estate gross returns were 2.5% for Q2 and 6.7% for the last twelve months.

Outlook and guidance

• Tracking toward a $1 per share dividend goal for 2025, with expected dividend growth in the low-to-mid 30% range and a 30% CAGR since going public.

• Over $15.9 billion in AUM not yet paying fees, expected to generate over $200 million in annualized management fees once deployed.

• FRE margin expected to be slightly below 60% for the remainder of 2024 and 2%-3% lower in 2025 due to recent acquisitions, but long-term target remains at 60%.

• Anticipates continued strong fundraising, successful GP stakes fundraise, and further BDC listings to support growth targets.

• Management expects current liquidity and cash from management fees to be sufficient for at least the next 12 months.