Blue Owl Capital Inc. Files Q2 2024 10-Q Report

TL;DR

OWL Q2 24 10-Q filed. Financials look solid.

AI Summary

Blue Owl Capital Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024 and provides financial details for the company. Key financial data and operational updates are presented in this report.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational details of Blue Owl Capital Inc., crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the financial quarter covered by the report.)
• 2024-06-30 — Report End Date (Specific date for which financial data is reported.)
• 2023-12-31 — Previous Year End (Provides a comparison point for financial performance.)

Key Players & Entities

• BLUE OWL CAPITAL INC. (company) — Filer
• 0001823945-24-000054 (filing_id) — Accession Number
• 20240630 (date) — Period of Report
• 20240801 (date) — Filed as of Date
• ALTIMAR ACQUISITION CORP. (company) — Former Company Name

FAQ

Key Financial Figures

• $0.0001 — 2024 Class A common stock, par value $0.0001 561,137,652 Class B common stock, par
• $173 m — Note 1 to our Financial Statements) for $173 million, through a combination of cash an
• $26.3 million — ing an aggregate value of approximately $26.3 million and earnout consideration in the form o
• $8.7 m — aggregate value of up to approximately $8.7 million, representing a total value of up
• $35.0 million — on, representing a total value of up to $35.0 million. On July 1, 2024, we completed the KAM
• $750 million — ote 14 to our Financial Statements) for $750 million. We funded the KAM Acquisition through
• $325 million — AM Acquisition through a combination of $325 million in cash and $425 million in Blue Owl Cl
• $425 million — combination of $325 million in cash and $425 million in Blue Owl Class A common stock, subje
• $250 million — ddition, there is potential for up to a $250 million earnout subject to certain adjustments
• $450 million — diaries (the "Atalaya Acquisition") for $450 million. The Atalaya Acquisition will be funded
• $350 million — through a combination of approximately $350 million of Class A Shares, Common Units and cor
• $100 m — ass C Shares, and cash of approximately $100 million, subject to certain closing consi
• $192.2 billion — ssets Under Management Blue Owl AUM: $192.2 billion FPAUM: $121.5 billion Credit AUM: $
• $121.5 billion — Blue Owl AUM: $192.2 billion FPAUM: $121.5 billion Credit AUM: $95.1 billion FPAUM: $6
• $95.1 billion — n FPAUM: $121.5 billion Credit AUM: $95.1 billion FPAUM: $63.7 billion GP Strategic Cap

Filing Documents

• owl-20240630.htm (10-Q) — 2463KB
• a63024exhibit46.htm (EX-4.6) — 270KB
• a63024exhibit104.htm (EX-10.4) — 27KB
• a63024exhibit311.htm (EX-31.1) — 10KB
• a63024exhibit312.htm (EX-31.2) — 10KB
• a63024exhibit313.htm (EX-31.3) — 10KB
• a63024exhibit321.htm (EX-32.1) — 5KB
• a63024exhibit322.htm (EX-32.2) — 5KB
• a63024exhibit323.htm (EX-32.3) — 5KB
• owl-20240630_g1.jpg (GRAPHIC) — 68KB
• owl-20240630_g2.jpg (GRAPHIC) — 54KB
• owl-20240630_g3.jpg (GRAPHIC) — 44KB
• owl-20240630_g4.jpg (GRAPHIC) — 44KB
• 0001823945-24-000054.txt ( ) — 11826KB
• owl-20240630.xsd (EX-101.SCH) — 66KB
• owl-20240630_cal.xml (EX-101.CAL) — 91KB
• owl-20240630_def.xml (EX-101.DEF) — 377KB
• owl-20240630_lab.xml (EX-101.LAB) — 740KB
• owl-20240630_pre.xml (EX-101.PRE) — 548KB
• owl-20240630_htm.xml (XML) — 1999KB

Financial Statements

Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4 .

Controls and Procedures

Controls and Procedures 30 PART II OTHER INFORMATION 32 Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 32

Signatures

Signatures 35 Index to Financial Statements F- 1 Table of Contents DEFINED TERMS Assets Under Management or AUM Refers to the assets that we manage, and is generally equal to the sum of (i) net asset value ("NAV"); (ii) drawn and undrawn debt; (iii) uncalled capital commitments; (iv) total managed assets for certain Real Estate products; and (v) par value of collateral for collateralized loan obligations ("CLOs") and other securitizations. Annual Report Refers to our annual report for the year ended December 31, 2023, filed with the SEC on Form 10-K on February 23, 2024. our BDCs Refers to the business development companies ("BDCs") we manage, as regulated under the Investment Company Act of 1940, as amended: Blue Owl Capital Corporation (NYSE: OBDC) ("OBDC"), Blue Owl Capital Corporation II ("OBDC II"), Blue Owl Capital Corporation III (NYSE: OBDE) ("OBDC III"), Blue Owl Technology Finance Corp. ("OTF"), Blue Owl Technology Finance Corp. II ("OTF II"), Blue Owl Credit Income Corp. ("OCIC") and Blue Owl Technology Income Corp. ("OTIC"). Blue Owl, the Company, the firm, we, us, and our Refers to the Registrant and its consolidated subsidiaries. Blue Owl Carry Refers to Blue Owl Capital Carry LP. Blue Owl GP Refers collectively to Blue Owl Capital GP Holdings LLC and Blue Owl Capital GP LLC, which are directly or indirectly wholly owned subsidiaries of the Registrant that hold the Registrants interests in the Blue Owl Operating Partnerships. Blue Owl Holdings Refers to Blue Owl Capital Holdings LP. Blue Owl Operating Group Refers collectively to the Blue Owl Operating Partnerships and their consolidated subsidiaries. Blue Owl Operating Group Units Refers collectively to a unit in each of the Blue Owl Operating Partnerships. Blue Owl Operating Partnerships Refers to Blue Owl Carry and Blue Owl Holdings, collectively. Blue Owl Securities Refers to Blue Owl Securities LLC, a Delaware limited liability company. Blue Owl Securities is a broker

Financial Statements Refers to our consolidated financial statements included in this report

Financial Statements Refers to our consolidated financial statements included in this report. GAAP Refers to U.S. generally accepted accounting principles. GP Strategic Capital Refers to our GP Strategic Capital platform that primarily focuses on acquiring equity stakes in, and providing debt financing to, large, multi-product private equity and private credit firms through two existing investment strategies: GP minority stakes and GP debt financing, and also includes our professional sports minority stakes strategy. NYSE Refers to the New York Stock Exchange. our products Refers to the products that we manage, including our BDCs, private funds, CLOs and other securitizations, managed accounts and real estate investment trusts. Part I Fees Refers to quarterly performance income on the net investment income of our BDCs and similarly structured products, subject to a fixed hurdle rate. These fees are classified as management fees throughout this report, as they are predictable and recurring in nature, not subject to repayment, and cash-settled each quarter. Part II Fees Generally refers to fees from our BDCs and similarly structured products that are paid in arrears as of the end of each measurement period when the cumulative aggregate realized capital gains exceed the cumulative aggregate realized capital losses and aggregate unrealized capital depreciation, less the aggregate amount of Part II Fees paid in all prior years since inception. Part II Fees are classified as performance revenues throughout this report. Partner Manager Refers to alternative asset management firms in which the GP Strategic Capital products invest. Permanent Capital Refers to AUM in products that have an indefinite term and do not have a requirement to exit investments and return the proceeds to investors after a prescribed period of time. Some of these products, however, may be required or can elect to return all or a portion of capital gains and investment income, and some

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. The information required by this item is included in the Financial Statements set forth in the F-pages of this report.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), should be read in conjunction with the Financial Statements. For a description of our business, please see "Item 1. Business" in the Annual Report. 2024 Second Quarter Overview Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Net Income Attributable to Blue Owl Capital Inc. $ 33,945 $ 12,859 $ 59,036 $ 21,176 Fee-Related Earnings (1) $ 296,475 $ 244,597 $ 586,173 $ 470,496 Distributable Earnings (1) $ 272,965 $ 227,016 $ 513,064 $ 436,030 (1) For the specific components and calculations of these Non-GAAP measures, as well as a reconciliation of these measures to the most comparable measure in accordance with GAAP, see "—Non-GAAP Analysis" and "—Non-GAAP Reconciliations." Please see "—GAAP Results of Operations Analysis" and "—Non-GAAP Analysis" for a detailed discussion of the underlying drivers of our results. Acquisitions On June 6, 2024, we completed the Prima Acquisition (as defined in Note 1 to our Financial Statements) for $173 million, through a combination of cash and Blue Owl equity, creating our real estate finance strategy. See Note 3 to our Financial Statements for additional information. Additionally, subject to achievement of certain milestones, we will deliver earnout consideration in the form of Class A Shares representing an aggregate value of approximately $26.3 million and earnout consideration in the form of Class C Shares and Common Units representing an aggregate value of up to approximately $8.7 million, representing a total value of up to $35.0 million. On July 1, 2024, we completed the KAM Acquisition (as defined in Note 14 to our Financial Statements) for $750 million. We funded the KAM Acquisition through a combination of $325 million in cash and $425 million in Blue Owl C

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View this 10-Q filing on SEC EDGAR