Blue Owl Capital (OWL) Q4 2023 earnings summary

Executive summary

• AUM reached $165.7B at Dec. 31, 2023, up 20% YoY; fee-paying AUM was $102.7B, up 16%.

• Permanent capital totaled $130.1B, up 18% YoY, and generated 92% of full-year management fees.

• Q4 FRE was $279.4M and DE was $262.3M; FY FRE reached $997.7M and DE $927.8M, up 25% each.

Financial highlights

• Q4 GAAP revenue was $494.0M, up 25% YoY; FY revenue was $1.732B, up 26%.

• Q4 GAAP net income attributable to Class A shares was $18.1M, or $0.04 basic and $0.03 diluted EPS; FY was $54.3M, or $0.12 basic and $0.10 diluted EPS.

• FY consolidated GAAP net income was $220.8M vs. a $40.2M loss in FY22; Class A attributable income was $54.3M vs. a $9.3M loss.

• Q4 FRE was up 26% and DE up 22%; per adjusted share, FRE was $0.20 and DE was $0.18.

• FY per-adjusted-share FRE was $0.70 and DE was $0.65; both measures rose 25%.

Outlook and guidance

• $14.5B of AUM was not yet paying fees, representing expected annual FRE management fees of ~$200M once deployed.

• Not-yet-paying-fee AUM comprised $10.6B Credit, $1.1B GP Strategic Capital and $2.8B Real Estate, with expected annual fees of $141M, $19M and $38M, respectively, once deployed.

• The 2024 annual dividend was set at $0.72 per Class A share, up 29% from 2023; new capital solutions for additional markets were in development.