Q2 2024 Blue Owl Capital Inc Earnings Call Transcript
Key Points
- Blue Owl Capital Inc (OWL) reported a record quarter with 23% fee-related earnings growth and 19% distributable earnings growth year-over-year.
- The company has achieved 13 consecutive quarters of management fees and fee-related earnings growth, showcasing the stability and strength of its business model.
- Blue Owl Capital Inc (OWL) announced strategic acquisitions, including Atellica and Prima, which are expected to significantly enhance its alternative credit and real estate credit capabilities.
- The company raised $32 billion across equity and debt over the past 12 months, reflecting strong fundraising capabilities even in a challenging environment.
- Blue Owl Capital Inc (OWL) continues to see strong demand for its direct lending solutions, with a record quarter of deployment totaling $18.7 billion in gross originations.
- The acquisition of Atellica, while strategic, is expected to be margin-dilutive in the short term, potentially lowering overall margins by 2-3% in 2025.
- Despite strong fundraising, the management fee trend in the quarter was slightly disappointing relative to the positive AUM inflow.
- The company faces potential pressure on Part One fees due to expected rate cuts and tightening loan spreads, which could impact earnings.
- Integration of recent acquisitions may take time, leading to short-term margin compression and operational challenges.
- There is a risk of credit quality issues within the portfolio, as highlighted by the specific mention of Pluralsight, which could impact overall performance.
Please stand by for streaming text
No or more. No, good morning, and welcome to Blue our Capital's Second Quarter 2024 earnings call. I will remain on listen-only advise all parties that this conference call is being recorded. I will now turn the call over to you and I head of Investor Relations for blew out.
Thanks, operator, and good morning to everyone. Joining me today are Mark mentioned, Co-Chief Executive Officer, and Alan Kirschbaum, our Chief Financial Officer. I'd like to remind our listeners that remarks which are not guarantees of future performance or results and involve a number of risks and uncertainties that are outside the Company's control and actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described from time to time in Golub Capital filings with the Securities and Exchange Commission.
The Company assumes no obligation to update any forward looking statements. We
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