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 organic growth, acquisitions, and capital raised.

• Fee-related earnings for Q3 2024 were $326.9M ($0.22 per share), distributable earnings were $301.0M ($0.20 per share), and GAAP net income was $29.8M.

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

• Closed Kuvare Asset Management and Atalaya acquisitions, adding over $30B to AUM, and announced the acquisition of IPI Partners to expand digital infrastructure capabilities.

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

Financial highlights

• Q3 2024 total revenues were $600.9M, up 40% year-over-year; last twelve months revenues were $2.16B, up 32%.

• Management fees for Q3 2024 were $523.3M, up from $386.0M in Q3 2023; last twelve months management fees were $1.85B, up 27% year-over-year.

• Raised $7.9B in equity capital in Q3, second highest quarter ever, and $24.2B over the last 12 months, up 67% year-over-year.

• Private wealth fundraising reached a record $4.2B in Q3, with gross inflows into perpetually distributed products up 67% over the prior 12 months.

• Credit gross originations were $10.9B in Q3 and $47B over the last 12 months; credit portfolio returned 3.3% in Q3 and 15.2% over the last 12 months.

Outlook and guidance

• Management expects continued growth in distributable earnings and intends to increase the fixed dividend annually in line with earnings growth.

• Projecting mid-20% growth in FRE and revenues for 2025, with FRE margin guidance at 57-58% gross of NCI and a long-term path to 60%.

• Over $260M in annualized management fees expected to come online as $21.7B of AUM not yet paying fees is deployed.

• IPI Partners acquisition (~$10.5B AUM) expected to close in Q4 2024 or Q1 2025, expanding digital infrastructure presence.

• 2025 dividend guidance set conservatively at $0.90 per share due to interest rate volatility and capital flexibility needs.