Summary of Blue Owl Capital Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Earnings: Fee-related earnings (FRE) of $0.27 per share; distributable earnings (DE) of $0.24 per share.

Full Year 2025: FRE of $0.96 per share (up 19% year-over-year); DE of $0.84 per share (up 16% year-over-year).

Dividend: Declared a quarterly dividend of $0.25 for Q4 and an annual fixed dividend of $0.92 for 2026.

Fundraising: Raised $56 billion in total capital for 2025, including $17 billion in Q4, marking an 18% increase year-over-year.

Assets Under Management (AUM): Exceeded $300 billion, with significant growth in both institutional and private wealth channels.

2Strategic Updates and Business Highlights

Record Fundraising: Achieved record fundraising across diversified strategies, with $25 billion raised in institutional equity and $42 billion in total equity.

Investment Performance: Strong performance across funds, with net lease strategy generating gross returns over 13% and direct lending net returns at 8.7%.

Digital Infrastructure: Launched new products, including a $1.7 billion first close on the digital infrastructure evergreen product (ODiT).

Diversification: Expanded private wealth footprint significantly, with $15.4 billion raised across wealth-dedicated evergreen products in 2025.

3Forward Guidance and Outlook

2026 Expectations: Targeting modest growth in FRE per share and a slight increase in FRE margins to approximately 58.5%.

Long-term Growth: Anticipate accelerating growth in 2027 and continued strong performance across various investment strategies.

Market Position: Confident in the ability to navigate market volatility and maintain strong fundraising momentum.

4Bad News, Challenges, or Points of Concern

Market Volatility: Noted elevated redemptions and a slowdown in capital raising for non-traded BDCs amid broader market fears.

Competitive Pressures: Acknowledged challenges in the private credit market and potential impacts on future fundraising and performance.

Investor Sentiment: Concerns about the impact of AI disruption on software investments, although management reported no significant red flags in their portfolios.

5Notable Q&A Insights

Software Exposure: Management reassured investors about the health of their tech lending portfolio, citing strong revenue and EBITDA growth despite market concerns.

Liquidity Management: Addressed investor queries about redemption requests, emphasizing the firm’s commitment to fulfilling these requests while maintaining liquidity.

Alternative Credit Growth: Highlighted significant growth potential in alternative credit, with a focus on expanding distribution and product offerings.

Geographic Distribution: Clarified that most wealth management AUM is US-based, with limited exposure in Asia, particularly in the context of the OTIC product. Overall, Blue Owl Capital reported strong financial results and strategic growth in Q4 2025, with a positive outlook for 2026 despite facing market challenges and investor concerns.