Slides
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1 Investor Day FEBRUARY 7, 2025
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2 This presentation has been prepared by Blue Owl Capital Inc. (NYSE: OWL) (“Blue Owl”) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Blue Owl and certain of its affiliates. Any discussion of specific Blue Owl entities is provided solely to demonstrate such entities’ role within the Blue Owl organization and their contribution to the business, operations and financial results of Blue Owl. This presentation is not intended to, does not constitute, and shall not be construed as, an offer to buy or sell, or th e solicitation of an offer to buy or sell, any securities, investment funds, vehicles or accounts, investment advice, or any other service by Blue Owl of any of its affiliates or subsidiaries. Nothing in this presentation constitutes the provision of tax, accounting, financial, investment, regulatory, legal or other advice by Blue Owl or its advisors. For the definitions of certain terms used in this presentation, please refer to the Defined Terms Page in the Appendix. This presentation may not be referenced, quoted or linked by website, in whole or in part, except as agreed to in writing by Blue Owl. This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-looking statements can be identified by the use of forward-looking words such as “outlook,” “target,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of a number of known and unknown risks, uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity, as well as other important factors, many of which are outside Blue Owl’s control. Additional important factors are described under the “Risk Factors” section of our filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov, as such factors may be updated from time to time. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in our periodic filings and in this presentation. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date of this presentation. Blue Owl assumes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. This presentation contains summaries of certain financial and statistical information about Blue Owl. Such summary information should be considered together with Blue Owl’s SEC filings and other public announcements that Blue Owl may make, by press release or otherwise, from time to time. In addition, this presentation contains certain information about the historical performance of Blue Owl, its affiliated funds and certain of their respective personnel and affiliates. You should not view information related to the past performance of Blue Owl and its affiliated funds as indicative of future results. Certain information set forth herein includes estimates and targets and involves significant elements of subjective judgment and analysis. No representations are made as to the accuracy of such estimates or targets or that all assumptions relating to such estimates or targets have been considered or stated or that such estimates or targets will be realized. Further, certain performance information, unless otherwise stated, is before giving effect to management fees, carried interest or incentive fees and other expenses. Management uses certain non-GAAP financial measures, including Fee Related Earnings and related components (e.g., FRE revenues, FRE expenses and FRE Margin) and Distributable Earnings to evaluate Blue Owl’s performance. Management believes that the use of these non-GAAP financial measures provides an additional tool for investors and potential investors to use in evaluating its ongoing operating results and trends. These non-GAAP measures should not be considered in isolation from, or as an alternative to, and should be considered in addition to, financial measures determined in accordance with GAAP. See Non-GAAP Measures, Non-GAAP Reconciliations, Defined Terms and Endnotes Pages in the Appendix where these measures are discussed and reconciled to the most directly comparable GAAP measures. Amounts and percentages may reflect rounding adjustments and consequently totals may not appear to sum. Certain information discussed in this presentation was derived from third party sources and has not been independently verified and, accordingly, Blue Owl makes no representation or warranty in respect of this information and assumes no responsibility for independent verification of such information. This presentation may contain information obtained from third parties, including market data and credit ratings from sources such as Standard & Poor’s. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. The statements contained in this presentation are made as of December 31, 2024, unless another time is specified in relation to them, including information and data labeled “2024,” “Current,” “Today” and other similarly labeled content. Access to this presentation at any given time shall not give rise to any interpretation that there has been no change in the facts set forth in this presentation since that date. In certain cases where indicated, Assets Under Management, employee statistics, office locations and fund related information, includes information from companies we have acquired. For such acquired companies, any information presented as “since inception” means since the company began operations and prior to its acquisition by us. Note: For Additional Important Information, please refer to Non-GAAP Measures, Non-GAAP Reconciliations, Defined Terms and Endnotes Pages in the Appendix at the end of this presentation, as needed. Important Notice
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3 8:30am Welcome Remarks Ann Dai 8:35am Blue Owl’s Strategic Vision Doug Ostrover 9:05am Credit Alternative Credit Craig Packer Ivan Zinn 9:35am GP Strategic Capital Michael Conley 9:50am Real Assets Net Lease Real Estate Credit Digital Infrastructure Marc Zahr Gary Rozier Jesse Hom Matt A’Hearn 10:25am The Future of Data Centers Doug Ostrover Divesh Makan 10:45am Short Break 11:00am M&A: Our Key Tenets Moderated by Marc Lipschultz Marc Zahr Ivan Zinn 11:15am Insurance Solutions Moderated by Eric Kirsch Dhruv Narain Brian Roelke Jeff Walwyn 11:30am Institutional Business James Clarke 11:45am Private Wealth Sean Connor 12:00pm Financial Review & Outlook Alan Kirshenbaum 12:20pm Closing Remarks and Q&A Doug Ostrover Marc Lipschultz Alan Kirshenbaum Event Agenda
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4 Welcome Remarks Ann Dai Head of Investor Relations
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5 35% 9% 19% 24% 12% 1% Totals may not sum due to rounding. Our Shareholder Base Has Meaningfully Changed Since Listing 26% 4% 4% 26%3% 37% Neuberger Berman Blue Owl GP Stakes Fund IV Other Pre-IPO Shareholders Blue Owl Management / Senior Employees PIPE Investors New OWL Public Shareholders SPAC Shareholders and Other Ownership at Listing Ownership at 12/31/241
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6 Over the Past 3 Years… Of OWL’s Top 20 public shareholders at listing are no longer shareholders today 40% 12 Turnover in OWL Class A share ownership since our listing Of OWL’s current Top 50 public shareholders were not holders as of our 2022 Investor Day21 S&P 500 Additional Index Eligibility:Current Index Inclusion: Russell 1000 CRSP Total Market S&P Total Market MSCI Small Cap $11.24 $26.01 $1.46 2022 Investor Day 1/31/2025 We have generated a 140% return for shareholders since our 2022 Investor Day Stock Price Cumulative Dividends 1
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7 Blue Owl’s Strategic Vision Doug Ostrover Co-Chief Executive Officer
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Skate to where the puck is going to be, not where it has been.
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We continue to lean in on innovation and scale
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Since our last Investor Day, we’ve achieved substantial growth and diversification across Blue Owl…
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11 Soaring to new heights… At Listing1 Today2 Employees ~250 1,100+ 4.4x Offices 6 20+ 3.5x Stock Price $10.00 $26.01 2.6x Market Cap $12bn+ $38bn+ 3.2x AUM $62bn $251bn 4.0x FRE Revenue $0.9bn $2.2bn 2.4x Investment Strategies 7 15 2.1x Blue Owl Evolution Since Listing
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12 $62bn $102bn $251bn 2Q21 At Listing 1Q22 Last Investor Day 4Q24 Today Real Estate Credit Investment Grade Credit Alternative Credit Liquid Credit Net Lease Other GP Minority Stakes Direct Lending 49% CAGR We Have Accomplished a Significant Amount in the 3+ Years We’ve Been Public Subsequent to 4Q24 Digital Infrastructure: $14bn 1
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13 As of 3/31/22. Direct Lending $45bn Real Estate $16bn GP Capital Solutions $41bn Technology Lending $8.9bn First Lien Lending $3.5bn Opportunistic Lending $2.1bn Diversified Lending $30.4bn GP Debt Financing $1.3bn Professional Sports $0.2bn GP Minority Equity $39.6bn Net Lease $16.1bn Across 34,000+ Wealth Clients and 500+ Institutional Clients Blue Owl 2022 Investor Day - $102bn of AUM
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14 Credit $136bn Real Assets $49bn GP Strategic Capital $66bn Other $2.3bn Alternative Credit $10.5bn IG Credit $17.6bn Liquid Credit $7.3bn Diversified Lending Technology Lending First Lien Lending Opportunistic Lending Direct Lending $98.1bn GP Debt Financing $2.8bn Professional Sports $0.9bn GP Minority Stakes $62.4bn Net Lease $33.9bn Real Estate Credit $15.5bn Subsequent to 4Q24 Digital Infrastructure +$14.2bn Across 125,000+ Wealth Clients and 900+ Institutional Clients Blue Owl Today - $251bn of AUM 3.0x Growth 1.6x Growth 3.1x Growth Pro- Forma = 4x Growth
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15 Length of Track Record1 Our Strategies That Existed As of Our Last Investor Day Direct Lending GP Strategic Capital2 Net Lease AUM Today 2016 2011 $98bn $66bn $34bn 2015 20202010 2009
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16 Liquid Credit & Other RE Credit Investment Grade Credit Alternative Credit Digital Infrastructure3 1992 2015 2023 (GP Led Secondaries) 2006 2016 Length of Track Record1 $10bn $15bn $18bn $11bn $14bn Our Strategies Today 2015 (Liquid Credit) 2012 (Healthcare) Direct Lending GP Strategic Capital2 Net Lease AUM Today 2016 2011 $98bn $66bn $34bn 2015 20202010 2009 Diversification into the largest growth areas of alternatives with the benefit of long track records of success
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17 29% 6% DE CAGR OWL Peer Average 31% 16% FRE CAGR OWL Peer Average Since our 2022 Investor Day, we have led the peer group in growth across many key metrics1 #1 40% 13% AUM CAGR OWL Peer Average 34% 13% Permanent Capital CAGR OWL Peer Average #1 #1 #1 We Have Demonstrated Differentiated Growth Across Key Metrics
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18 Reflecting Both Strength and Stability of Growth Through Various Market Environments 42% 25% 22% 30% 16% -5% 13% 8% -5% 8% 8% 4% 2022 2023 2024 3 Year Average OWL DE Growth Peer Average DE Growth S&P 500 Earnings Growth OWL OWL OWL OWL Significant outperformance over a 3-year period 1
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19 Please see endnotes for additional information. Blue Owl Is Levered to the Largest Secular Growth Trends in Alternatives Within Alternative Credit, the market share of private solutions is expected to double over the next handful of years 0 100 200 300 $bn Direct Lending continues to grow and take market share from the leveraged loan and high yield markets The demand for capital to fund data centers is substantial, and hyperscalers are increasingly looking for private solutions There is $12 trillion of PP&E on the balance sheets of IG companies in North America (while annual sale leaseback transaction volume is ~$40bn, <0.5%) 4% Private Markets 8% 2029E $11 Trillion Estimated Addressable Market Future Potential 193 817 1,326 Dec-16 Jun-24 2029 Projected $bn Annual Expected Hyperscaler CapEx Spend Direct Lending Industry AUM 25% CAGR
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20 2022 2028E Pensions 54.4 71.8 Insurance 33.9 42.0 Sovereign Wealth 11.4 15.5 Institutional Total 99.6 129.3 HNW / Mass Affluent 191.8 278.8 Total Client AUM 291.4 408.2 Individual investor allocations to alternatives today, a fraction of the multi-trillion-dollar opportunity. 91% <5% Investors that intend to maintain or increase allocations to private debt over the long term. Institutional allocation to alternative assets, up 4.5 percentage points since 2019.20% +30% +45% $ trillions Please see endnotes for additional information. Allocations to Alternatives Continue to Increase Across Institutional and Private Wealth
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21 $52 billion of Equity Raised in Private Wealth at Blue Owl Please see endnotes for additional information. We See a Very Long Runway Ahead for Alts in Private Wealth Expanded Alts Usage Market-Wide Product Innovation New strategies & structures Became the largest player in GP Stakes Growing Globally New Frontiers 401k Market Self-Directed Tech Driving Access Market-wide, only ~3% of individuals’ assets are allocated to alternatives A minority of financial advisors using Blue Owl products account for the majority of our sales Launching products in Alternative Credit and Digital Infrastructure over the next year 92% of Blue Owl’s Private Wealth allocation comes from North American clients The 401k market represents a $8.9tn opportunity More advisors recommending alts Expand portfolio allocations to alts Certain platforms with trillions in AUM do not even offer alts yet Expanded Wealth footprint in Singapore, Hong Kong, Tokyo, and Sydney Where we are today The top 6 firms captured approximately 60% market share in 2024… Blue Owl was one of the 6 Partnering with large distributors on new and innovative structures Technology lowers structural barriers to alts Ongoing advisor and client education
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22 We Are Resourced to Support Meaningful Growth 22 Where we were: Last Investor Day New York City Short Hills Menlo Park Chicago London Singapore Hong Kong 400 Employees 10 Offices Greenwich
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23 We Are Resourced to Support Meaningful Growth 23 1,100 Employees Where we are today1: 20+ Offices New York City Greenwich Short HillsMenlo Park Chicago London Singapore Hong Kong Boston Dallas Washington DC Frankfurt Sydney Tokyo San Francisco Amsterdam Dubai Miami
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24 3% 4% 5% 8% 9% 19% 20% 32% Other Endowments & Foundations Family Office Sovereign Wealth Fund Corporate Pension Public Pension Insurance (LPs / KAM ) Private Wealth 79% North America 13% APAC 8% EMEA & RoW And Continue to Broaden and Diversify Our Investor Base Investor base geography 4x more Wealth Clients and 2x more Institutional Clients (since last Investor Day) Based on equity commitments 1
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25 Blue Owl Real Estate Credit Blue Owl Insurance Solutions Blue Owl Digital Infrastructure Blue Owl Alternative Credit As the Industry Consolidates, Blue Owl’s Scale Is Even More Valuable to Potential Partners 2.7x AUM 2.1x Flagship Fund Size +28 bps Average Mgmt Fee Rate 2.9x FRE Revenues Blue Owl Net Lease Since Acquisition Signing1:
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26 Culture Is Critical to Our Success Named #109 on Forbes’ “America’s Best Companies” List 2024 Mutual respect We hold ourselves to the highest standard of professional conduct. We acknowledge everyone’s unique contributions and in challenging situations, listen to understand. Excellence We strive to operate always at the highest standard and deliver the best possible outcomes for our stakeholders; we are constantly analyzing our performance to learn from our successes and our mistakes. Constructive dialogue We invite alternative points of view. As a firm, we encourage thoughtful, intentional, and honest opinions. One team We pride ourselves in our strong alignment with all our stakeholders, including investors, borrowers, partner managers, employees, and others. We act in the highest interest of the Blue Owl ecosystem and work across functions for greater outcomes to deliver value for all of these groups. LinkedIn applicants in 2024 57,000+ Senior investment professional retention 96%
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What do we think we can accomplish over the next 5 years?
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28 1.3 3.1+ 2024 2029 Target 2.0 5.1+ 2024 2029 Target 251 500+ 2024 2029 Target FRE Management Fees Fee Related Earnings AUM ($ billions) ($ billions) ($ billions) 20+% CAGR 20+% CAGR 2x+ Growth Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved. We Expect to More Than Double Key Metrics Over the Next 5 Years
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29 Our Earnings Are Underpinned by Our Durable Permanent Capital 91% of FRE Management Fees are driven by permanent capital DE is 100% driven by FRE, lowering earnings volatility And incremental fundraising adds to the layer cake of earnings Permanent capital means we keep the AUM we have already raised – unlike peers, we don’t have to raise $2 to grow AUM by $1 The Layer Cake Effect 2021 Distributable Earnings - $523mn 2024 Distributable Earnings - $1,129mn 29% CAGR
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30 We are fundraising from an increasingly diversified set of strategies, products, and investors, which adds to the layer cake of earnings We have $23 billion of AUM which will drive over $300 million of management fees once the capital is deployed And M&A would be additive to the growth story Embedded Earnings AUM Not Yet Paying Fees & Software BDC Listing With New Layers from Fundraising, Deployment, and M&A The Layer Cake Effect 2021 Distributable Earnings - $523mn 2024 Distributable Earnings - $1,129mn New Capital Raised and Deployed M&A 29% CAGR
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31 We have a leading Private Wealth franchise, strong and growing Institutional relationships and expanded Insurance capabilities We have a differentiated business model that is built on permanent capital and is 100% FRE Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved. Key Takeaways 5 We expect to grow our FRE Management Fees and FRE by a 20+% CAGR over the next 5 years We expect to more than double our AUM to $500bn+ by 2029 We can replicate the growth of our net lease business with Atalaya, IPI, and others 4 We are well positioned in the largest secular growth areas of alternatives including direct lending, alternative credit, GP stakes, and digital infrastructure 3 2 1
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32 We told you we think we can more than double earnings over the next 5 years 32% 18% 2021 - 2024E FRE CAGR Blue Owl Peer Average 24.0x ~26.5x ~33.5x 2026 Implied FRE Multiple Blue Owl Peer Average Peer High-End BX & ARES Our FRE growth has significantly outperformed peers since our listing1... …and yet our stock currently trades below the average peer FRE multiple1 Multiple Expansion Stock Price none 2.5x to peer average to peer high-end 2.8x 3.5x Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved. We Believe Our Stock Has Meaningful Upside Potential
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33 Credit Craig Packer Co-President, Head of Credit
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34 We offer institutional, private wealth, and insurance clients access to compelling and differentiated investment opportunities across world class credit strategies Blue Owl Manages a Market Leading Credit Business Our Credit Business Today - $136bn AUM Direct Lending Alternative Credit Investment Grade Credit Liquid Credit Other Strategies AUM $98.1bn $10.5bn $17.6bn $7.3bn $2.3bn Investment Team ~130 ~65 ~15 ~20 ~15 Focus ▪ Diversified Lending ▪ Technology Lending ▪ First Lien Lending ▪ Opportunistic Lending ▪ Asset-Backed Financing ▪ Private Corporate Credit ▪ Commercial Solutions / Equipment Leasing ▪ Fund Financing ▪ IG Asset-Backed Financing ▪ IG Structured Credit ▪ IG Private Corporate Credit ▪ IG Fund Financing ▪ CLO portfolios ▪ Third-party CLO equity ▪ Strategic Equity ▪ Healthcare Opportunities New and expanded capability set
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35 $45bn $98bn Investor Day 2022 12/31/2024 Diversified Lending Technology Lending First Lien Lending Opportunistic Lending Direct Lending Remains Our Largest Credit Strategy $31 $62 $124 $195 $434 $621 $870 $1,133 2017 2018 2019 2020 2021 2022 2023 2024 FRE Management Fees ($ millions) $6 $12 $15 $21 $32 $42 $48 $59 2017 2018 2019 2020 2021 2022 2023 2024 Fee-Paying AUM ($ billions) 67% CAGR 33% CAGR 38% CAGR AUM 1
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36 Fundraising Momentum Has Been Strong with Continued Interest from Institutional and Wealth Investors $3.0 $7.8 $12.2 $19.2$15.7 $21.9 $25.5 $29.5 $2.3 $5.2 $8.3 $10.6 $14.5 $18.7 $29.7 $37.7 $48.7 2016 2017 2018 2019 2020 2021 2022 2023 2024 Non-Traded Funds Other Funds OTIC Launch OCIC Launch 90+% Institutional investors expect to maintain or increase private debt allocations 90+% Wealth advisors expect to allocate more to alternative assets over the next two years Since inception, we raised more than $45bn of equity with significant momentum in non-traded funds ($ billions) Please see endnotes for additional information.
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37 Blue Owl Direct Lending by the Numbers 510+ Deals Closed2 140 Unique Sponsors Closed Deals 20bps Avg. Position Size ~10,000 Deals Reviewed ~20% Sole Lender2 ~90% Agent or Lead ~5% ITD Close Ratio $980mn Average Revenue 39% Average LTV $243mn Average EBITDA Robust Originations with Highly Selective Deployment1 760+ Sponsor Relationships 430+ Portfolio Companies Defensive Portfolios with Strong Competitive Positioning1 $143B Gross Originations 11bps Annualized Loss Ratio 10% LTM Net Direct Lending Return3 Compelling Investor Experience Past performance does not guarantee future results.
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38 As of 9/30/24. Proven Ability to Originate & Lead Marquee Financings ~90% Control Positions (Agent or Lead) ~20% Sole Lender2 50%+ 2024 Incumbent Fundings1 ~35% % of $1bn+ deals where Blue Owl was a lead % of Total Deals 65% 13% 8% Closed on 5% of Deals Sourced Deals Sourcing Deal Screening Due Diligence Investment Committee Deal Closing 9,963 6,503 1,313 803 512
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39 Please see endnotes for additional information. Our Value Proposition Drives Better Spreads vs. Public Markets 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% LSTA US Lev Loan Spread B/B+ Rated FL Loans - Institutional Blue Owl Direct Lending 1L Spreads above Lev Loans Average Leveraged Loan Average Blue Owl Direct Lending 185 bps Avg. Pricing Premium
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40 Our BDCs provide a growing permanent capital base, allowing us to benefit from significant scale and to remain active in the market across all environments As of 9/30/24. Growth Has Been Driven by Our Leading BDC Business Diversified Strategy: $60.4bn AUM including 3 BDCs1 Technology Strategy: $23.2bn AUM including 3 BDCs Recent initiatives to streamline our direct lending strategy, including closing the merger of OBDC & OBDE and announcement of the merger of OTF & OTF II, will drive longer-term synergies Blue Owl Capital Corporation (NYSE: OBDC) Highlights2 Launched in 2016 Second largest public BDC 0.7% Non-Accruals at Fair Value 43% Avg. LTV 0.5% Avg. Position Size 80%+ Senior Secured 0.2% Non-Accruals at Fair Value 31% Avg. LTV 0.7% Avg. Position Size 75% Senior Secured Blue Owl Technology Finance Corp. (OTF) Highlights3 Launched in 2018 Largest technology focused direct lending strategy
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41 Please see endnotes for additional information. Blue Owl Is Taking Outsized Market Share in a Growing Asset Class • Demonstrated track record of delivering compelling relative returns • Wide range of product structures – we meet investors where they are • Global presence with best-in- class client service • Growth driven by thoughtful expansion into differentiated strategies and products Why We’re Winning $0 $20 $40 $60 $80 $100 $120 $0 $200 $400 $600 $800 $1,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 Industry Direct Lending AUM (lhs) Blue Owl Direct Lending AUM (rhs) ~20% Direct Lending AUM CAGR 55%+ Blue Owl Direct Lending AUM CAGR ($ billions)
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42 42 Less than a handful of parties • Regularly lead large deals for upper-middle market companies • Standard checks of >$500mn; can regularly commit $1bn+ • One stop shops - wide range of solutions As of 9/30/24. Large, Diversified Lenders Benefit Disproportionately As the Market Grows One of few that can provide full, customized solutions in size Can regularly commit $1bn+ Scale One of the largest in the space; substantial domain expertise in select sectors Team of approximately 130 investment professionals Solutions span the capital structure and are tailored to each borrower 50%+ 2024 fundings were to incumbent borrowers Blue Owl’s Competitive Advantage Scaled Upper Middle Market Lenders Smaller Capital Providers in Middle / Lower Middle Market Non-Core Upper Middle Market Lenders Handful of large asset managers • Standard checks of $200-500mn, but inability to lead large deals • Some flexibility of capital, but generally limited product suite Commoditized base of small capital providers • Standard checks of <$200mn; participants in smaller deals • One-dimensional product offerings; inability to customize due to financing & other constraints Where Blue Owl participates Flexibility Team
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43 Please see endnotes for additional information. Greater Adoption of Direct Lending Has Been Driven by a Number of Factors Privacy Maturation of the Market has Accelerated Adoption The $1bn+ Direct Lending Deal Has Become Increasingly Common Predictability Partnership • As leading private credit managers scaled… • Bigger pools of capital allowed for larger commitments, which drove… • The advent of the $1bn+ unitranche, with larger deals supporting bigger companies • Sponsors and borrowers are now increasingly familiar with direct lending solutions… • Which have further proven to be a consistent and reliable source of capital, even during periods of broader market dislocations $6 $6 $48 $59 $50 $77 2019 2020 2021 2022 2023 YTD-3Q24 Total Volume ($bn)
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44 21% Public Market Outstandings Direct Lending AUM 11% 30%+ Continued Momentum in Direct Lending Market Share Growth Please see endnotes for additional information. Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achieved. Significant Growth Opportunity Remains for Direct Lending Private Equity vs. Direct Lending Dry Powder Direct Lending has grown to ~20% of the market over the last 5 years with potential to reach 30% by 2029 $1.0 $1.6 $0.3 Private Equity Direct Lending Buyout Other Private Equity Direct Lending $2.6 2019 2024 2029E ($ billions)
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45 We are among the few platforms with the size, scale and flexibility to consistently deliver for investors and sponsors. Our position as a market leader enables us to capture what we view as the best opportunities in the market. Bottom line, our platform, our performance, our position and our vision make us confident in our ability to deliver exceptional results in the coming years Why We Are Confident in The Future of Our Direct Lending Strategy Market Leader1 Our track record of consistent, high-quality returns across markets demonstrates the strength of our strategy, the quality of our people and ability to navigate any environment. Strong Track Record2 Our platform has been deliberately built to meet the evolving needs of our clients and sponsors and is positioned to capitalize on direct lending market tailwinds. Client Driven3 Everything we do is for the benefit of our clients, through our consistent returns, disciplined risk management and front- footed focus on growth. Growth Mindset4 Past performance does not guarantee future results.
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Within Credit, we now have a scaled and experienced Alternative Credit team…
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47 Alternative Credit Ivan Zinn Head of Alternative Credit
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48 Despite an extensive track record, we’ve barely scratched the surface Introducing Blue Owl’s Alternative Credit Strategy (f/k/a Atalaya) ~75% Sourced Through Direct Relationships 900+ Investments $11bn AUM $22bn Invested Capital 18+ Year Track Record 80+ Employees Specialty Finance Lender of the Year, Americas Private Debt Investor, 2021 and 20231 Legacy Alternative Credit Drawdown Vehicles Untapped Alternative Credit Fund Universe Unlocked by Insurance / Private Wealth Income-Oriented Opportunistic
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49 Private Credit A key distinction of Asset-Based Finance (“ABF”) investing is that the lender’s source of repayment is derived from the contractual cashflows of a pool of assets For illustrative purposes only. Key Segments of Asset-Based Finance Corporate Credit Alternative Credit Direct Lending Asset-Based Finance Financial Assets Hard Assets Financial Assets Hard Assets Consumer Finance • Credit Cards • Installment Loans • Leases, etc. Small Business Finance • Small Business Loans • Revenue-based Financings, etc. Residential Finance • Mortgages • Alternative Residential Finance (e.g., HELOC, etc.) Non-tangible assets backed by consumer and small-business finance Tangible assets that have intrinsic value such as mission-critical equipment, real estate, and transportation Equipment Leasing • Mission-critical manufacturing • Digital infrastructure • Aviation, etc.
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50 Blue Owl Alternative Credit is financing everyday consumers and businesses Asset-Based Finance: The Backbone of Main Street Illustrative example: A trip down Main Street Where you live Financed by mortgages How you buy Financed by credit cards Where you buy Loans to small businesses What you consume Machinery used in goods production financed by equipment leases How you receive goods Providing leases on fleets of delivery vehicles What you drive Financed by loans How you travel Aircraft financed by aircraft loans
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51 Why Now? The Alternative Credit Opportunity Bank retrenchment & resulting opportunity set that occurred in corporate lending post-GFC is reoccurring in ABF Volcker Rule Dodd-Frank Increased capital charges ABF Retrenchment Corporate Lending Retrenchment Phase I TODAY2008 GFC Phase II Regional Banking Crisis Change in stability of deposit base driving increased regulation Evolving risk capital weightings Direct Lending Strategy Creation and adoption of unitranche solution for corporate borrowers Alternative Credit Strategy Full-suite solution to borrowers with introduction of insurance capital Broader capital base allows for one-stop solution for borrowers, driving increasing market share towards private solutions
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52 Why Now? A Large and Underpenetrated Market Tremendous growth potential in the ABF market based upon trajectory of corporate lending privatization Blue Owl believes the same trends that drove penetration of the corporate market are driving adoption and growth within the $11 trillion Asset -Based Finance market 4% Current Private ABF Private ABF can grow 4x by simply matching current corporate private penetration 16% Penetration of Current Private Corporate Market $11 Trillion Estimated Addressable ABF Market Please see endnotes for additional information.
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53 Offering Investors Differentiated Exposure in Private Credit Asset-based finance completes investors’ private credit portfolios Diversification Attractive Opportunity Set with Limited Competition Why ABF? Uncorrelated to corporate credit risk Individual portfolio investments typically secured by pools of assets, increasing diversification Multi-trillion-dollar market High barriers to entry Limited participants Amortizing Short duration1 Attractive Risk Reducing Characteristics For illustrative purposes only.
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54 Asset-Based Finance Provides Protection for Investors Targeting investments that feature additional structural protection to complement those provided by the underlying asset collateral Year 1 Year 2 Year 3 Year 4 Year 5 Equipment Leasing Cash Flows Interest Principal Year 1 Year 2 Year 3 Year 4 Year 5 Corporate Loan Cash Flows Interest Principal For Illustrative Purposes Bullet Maturity ABF Cash Flows Corporate Loan Cash Flows Substantially self-amortizing due to profile of underlying assets; reduced exit risk Reliant on capital markets exit, refinancing, or sale Short Duration Small Balances Amortizing Asset Features Weighted average lives of 0.5 - 2.5 years can allow for accelerated de-risking and more rapid performance data capture Pooling small balances can increase diversification and potentially allow for more manageable payments for underlying borrowers, which is expected to improve priority of payment Fully amortizing assets – no reliance on assets that require ‘feeding’ in liquidation scenarios (visual below) For illustrative purposes only. Self-Amortizing
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55 Assets can withstand multiples of severe macroeconomic stress before return impairment Past performance does not guarantee future results. Structuring to De-Risk Consumer & Commercial Credit $7.1bn Cumulative Invested Capital $3.6bn Distributions Paid ~10% Net IRR2 4bps Annualized Loss Ratio For Illustrative Purposes IRR 0% 13% IRR (left) Losses (right) Expected losses informed with historical asset performance & predictive modeling Positive outcome even in GFC environment Tight covenants allow for cash flow diversion to de-risk BO Deep recession case with significant elevated losses Understanding Individual Investment Resiliency… … to Generate Attractive Risk-Adjusted Returns Cumulative Losses on Underlying Assets 1.0x 1.5x 2.0x BO Base Case Covenant Breach BO Downside GFC Metrics for asset income funds, which comprises 34% of Alternative Credit AUM1
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56 Requires Decades of Historical Data Points with Data Science Excel model (one scenario) Loan pool Data science models (with loan-level attributes built-in) Risk grades … Aggregate attributes Data-intensive nature of ABF creates significant barriers to entry Enhanced Asset-Level Modeling in Underwriting Tracking Asset Performance in Real Time 100M+ Datapoints on consumers and small businesses originations 50+ Platforms invested in 18+ Year Alternative Credit Track Record
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57 Past performance does not guarantee future results. M&A Playbook: Path to Value Creation As Part of Blue Owl $4bn $11bn 2019 Today Future Alternative Credit AUM Launch new Alternative Credit products in 2025 Scale deployment with more capital targeting more diversified returns, expanding Blue Owl’s Alternative Credit value proposition to counterparties 21% CAGR ? Leverage Blue Owl’s global institutional platform Create private alpha and beta plus opportunities for the insurance channel
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Looking ahead for our Credit platform…
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59 Expansion of Our Credit Business Means a Wider Funnel for All What hasn’t changed… Rigorous underwriting | Principal protection first | Solutions and partnership mindset Driving Improved Investor Outcomes Across Institutional, Private Wealth, and Insurance Investors • Shared expertise • Increased range of opportunities • Ability to speak for larger bite sizes • Deeper counterparty relationships • Greater variety of investment products / structures
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60 • First Lien Loan • Second Lien Loan • Unitranche Loan • Recurring Revenue Loan • Specialty Finance JVs • Preferred Equity • Drug Royalties • NAV Lending • Broadly Syndicated Loans (for liquidity in select funds) Our Expanded Product Offering Benefits Borrowers & Investors Blue Owl Credit (Today) Blue Owl Direct Lending (2022 Investor Day) • First Lien Loan • Second Lien Loan • Unitranche Loan • Recurring Revenue Loan Investment Grade Credit Asset-Based Financing Direct Lending Alternative Credit Opportunistic Solutions We can now offer a full suite of solutions, across multiple asset classes and price points, to provide a one-stop financing solution for our borrowers and a wide array of attractive return profiles to our investors Maximum Bite Size: $500mn – $750mn Maximum Bite Size: $1bn+ Investment Focus: Investment Focus: • Asset-based finance / rediscount lending • Whole loan purchases • Equipment financing and leases • Aviation finance • Credit secondaries • Soft asset financing (royalties, media rights, etc.) • Fund finance • CLO liabilities • Investment grade private placement
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61 We Have a More Diversified Set of Growth Drivers Propelling Us Forward $45 $98 $11 $18 $7 $2 Investor Day 2022 12/31/2024 Direct Lending Alternative Credit Investment Grade Credit Liquid Credit Other Credit Strategies Scale and deploy capital across our Insurance Solutions platform Ongoing expansion of Direct Lending across Institutional and Private Wealth channels Growth of newer strategies (Strategic Equity, Healthcare, etc.) Launch of new Alternative Credit products in 2025 and continued fundraising momentum in existing strategies $45bn $136bn Blue Owl Credit AUM 1
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62 Key Takeaways For Today 321 We have diversified our Credit business significantly over the past 3 years, serving a broader set of investor objectives The opportunity set for Direct Lending remains significant and we expect to remain a market leader in this growing asset class We see a long runway ahead for Alternative Credit driven by global expansion of the existing business and new product development 654 Our scale is a meaningful competitive advantage Private Credit strategies are seeing strong demand from investors across Institutional, Private Wealth, and Insurance channels We remain early days in the movement of Credit markets towards private market solutions
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63 GP Strategic Capital Michael Conley Senior Managing Director
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64 GP Strategic Capital by the Numbers GP Minority Stakes — $62.4bn GP Debt Financing — $2.8bn Professional Sports Minority Stakes — $0.9bn GP Strategic Capital AUM 100% of GP Strategic Capital’s FRE Management Fees Are From Permanent Capital $136 $185 $314 $287 $358 $529 $546 $615 2017 2018 2019 2020 2021 2022 2023 2024 FRE Management Fees ($ millions) $8 $14 $18 $18 $21 $29 $31 $37 2017 2018 2019 2020 2021 2022 2023 2024 Fee-Paying AUM ($ billions) 24% CAGR 25% CAGR
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65 As of 9/30/24, except for Current Net DPI which is as of 12/31/24. MSCI Burgiss quartile benchmark data as of 9/30/24. Past performance is not a guarantee of future results. High Quality Performance Over Multiple Vintages GP Stakes III (2016) Net IRR 22.4% Net MOIC1 2.76x Net DPI2 1.25x $5.3bn Committed capital GP Stakes IV (2019) Net IRR 38.7% Net MOIC1 2.08x Net DPI2 0.86x $9.0bn Committed capital GP Stakes V (2022) Net IRR 18.8% Net MOIC1 1.23x Net DPI2 0.36x $12.9bn Committed capital Top quartile vintage3 Strong cash flows and capital return underpin top quartile returns Top quartile vintage3 Top quartile vintage3
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66 22.4% 18.5% Fund III Top quartile As of 9/30/24 except for Net DPI which is as of 12/31/24. MSCI Burgiss quartile benchmark data as of 9/30/24. Past performance is not a guarantee of future results. Our GP Minority Stakes Strategy Combines Opportunistic Return Potential and Attractive Yield GP Stakes III (2016) GP Stakes IV (2019) GP Stakes V (2022) 1 2 3 Ownership of GP Economics creates long-term equity upside Meaningful cash on cash returns serve to mitigate risk Early and substantial distributions create an efficient net out-of-pocket experience for investors Top Quartile 1.3x 1.2x Fund III Top quartileNet DPI2 Top Quartile 2.8x 2.2x Fund III Top QuartileNet MOIC1 Top Quartile 38.7% 18.6% Fund IV Top quartile Net IRR Top Quartile Net IRR 0.9x 0.5x Fund IV Top quartile Net DPI2 Top Quartile 2.1x 1.7x Fund IV Top quartile Net MOIC1 Top Quartile 18.8% 17.7% Fund V Top quartileNet IRR Top Quartile 0.4x 0.04x Fund V Top quartile Net DPI2 Top Quartile 1.2x 1.2x Fund V Top Quartile Top Quartile Net MOIC1
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67 $196 $674 AUM at Close Latest AUM Buyout, 49%Private Debt, 26% Real Assets, 22% Venture / Growth, 3% Buyout, 54% Real Assets, 28% Private Debt, 17% Buyout, 43% Real Assets, 28% Venture / Growth, 18% Private Debt, 11% GP Stakes III GP Stakes IV GP Stakes V GP Stakes III GP Stakes IV GP Stakes V $529 $741 AUM at Close Latest AUM Our Partner Managers Have Seen Meaningful Growth… Historical AUM Growth ($bns) 244% 187% 40% Illustrative asset exposure across recent GP Minority Stakes funds1 ▪ 10 partner managers ▪ ~150 underlying funds ▪ ~1,050 portfolio companies ▪ 17 partner managers ▪ ~100 underlying funds ▪ ~1,050 portfolio companies $337 $970 AUM at Close Latest AUM ▪ 20 partner managers ▪ ~150 underlying funds ▪ ~1,950 portfolio companies
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68 0 2 4 6 8 10 12 14 16 2010 2012 2014 2016 2018 2020 2022 2024 2026 Total Capital Raised – GP Stakes % of Total Blue Owl1 $38.5bn 63% Peer 1 $8.9bn 14% Peer 2 $8.4bn 14% Peer 3 $3.3bn 5% Peer 4 $2.4bn 4% Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved. We Remain the Clear Market Leader in GP Minority StakesFund Size ($bns) Year GP Stakes I GP Stakes II GP Stakes III GP Stakes IV GP Stakes V GP Stakes Next Vintage Target Mid-Cap Strategy Target Peer 1 Peer 1 Peer 2 Peer 2Peer 2 Peer 3 Peer 4 Peer 4
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69 GP’s need for strategic primary capital accelerates exponentially with firm and industry growth $3 $62 $- $10 $20 $30 $40 $50 $60 $70 2010 2023 Pre-deal financial motivations Global Private Markets GP Commitments ~1% of $349bn of Private Capital Raised ($ billions) ~5% of $1.2tn of Private Capital Raised Providing Growth Capital to a Growing Industry Platform expansion • Geographic growth • Consolidating of complementary businesses • Possible M&A transactions GP commitment • Larger investments alongside LPs • Enhance alignment and deal pace New products • Expand into adjacent strategies • Capitalize and develop new investment teams Capital strategy • Strategic value partner • Facilitating generational transfer • Create equity redistribution program • Take out external or silent partners GP stakes are a response to a significant unmet capital need Please see endnotes for additional information.
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70 Business Services Platform (BSP) – A Value-Add to Partner Managers Approximately 60 team members providing strategic advice and services to Partner Managers For illustrative purposes only. There is no guarantee that the business services platform will provide the services described in this presentation to any Partner Manager. KEY ADVISORY AREAS Fundraising & Client Development Business Strategy & Growth Digital Transformation & Optimization Capital Strategies Private Wealth Advisory Corporate Strategy and M&A ESG Advisory Human Capital Advisory Citizenship and Strategic Initiatives Operational Advisory Artificial Intelligence Advisory Procurement Solutions Data Science Tech Infrastructure and Cyber
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71 All GP Minority Stakes deals $600 million+4 90+ total transactions1 70+ partnerships2 30+ person investment team ~60 person business services team 6.9x Our Competitive Advantages Are Significant Size, scale and agility 0 senior investment team turnover since inception median entry multiple since 20153 88% 12% Blue Owl GP Minority Stakes All other market participants
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72 0x 5x 10x 15x 20x 25x 30x 35x Average Blue Owl Deal Blue Owl Median Blue Owl GP Strategic Capital Transaction Multiples (3yr Avg DE) vs. Public Comparables1 Blue Owl GP Minority Stakes Median: 6.9x Our Scale Creates Leverage in Purchase Prices Since 2015, Blue Owl GP Minority Stakes has closed 40+ transactions at an over 50% discount to public market comparables
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73 1. New opportunities Large institutional private markets managers without a minority partner ~$38.5bn2 $500 billion+ today1 Addressable Partner Universe Total GP Minority Stakes capital raised by Blue Owl Total GP Minority Stakes capital raised by all market participants Estimated investable universe 2. Secondary opportunities Stakes or portfolios currently owned by other GP Stakes investors 3. Current Partner Managers Follow-on investments in existing Partner Managers to fund additional growth or expand into new products For illustrative purposes only. The Opportunity Set for Deployment Remains Robust Pipeline segmented into three principal channels We are focused on the largest specialist private markets managers globally
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74 Key Takeaways For Today 321 Our GP Strategic Capital business meets alternative asset managers’ real and significant needs for growth capital Scale is a meaningful competitive advantage, driving favorable outcomes for our investors The runway for growth is long as the alternatives industry continues to expand and evolve 654 Our strategy meets investors’ needs for differentiated performance and robust cash flows, offering attractive yield and equity upside potential We’re entering into innovative transactions like strip sales, showing pathways for return of capital while extending management fees for Blue Owl GP Strategic Capital is yet another representation of the innovative culture at Blue Owl, highlighting the ways in which we seek to skate to where the puck is going
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75 Real Assets Marc Zahr Co-President, Head of Real Assets
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76 Net Lease A pioneer in Triple Net Lease, now diversifying into Real Estate Credit and Digital Infrastructure 76 Net Lease Real Estate Credit Digital Infrastructure 2021 Oak Street at Acquisition Announcement 9/30/21 $12.4bn AUM 2024 Pro-Forma for IPI Acquisition 12/31/24 $63.6bn AUM 65% AUM CAGR 24 Investment Professionals 100+ Investment Professionals Blue Owl Real Assets - Exceptional Growth Over the Last 36 Months
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77 #1 Private Wealth Capital Raiser (2024) Firm Gross Raise ($mn) Net Raise1 ($mn) $2,353 $2,148 Peer Firm 1 $2,131 $(5,709) Peer Firm 2 $1,155 $653 Peer Firm 3 $490 $485 Peer Firm 4 $472 $59 Peer Firms 5-12 $1,617 $(150) Non-Traded REIT Fundraising LTM 2024 Top Institutional Real Estate Fund Closes Leading in non-traded REIT fundraising, but importantly – leading in net flows Fund Manager Size ($bn) Blue Owl Real Estate Fund VI $5.2 Peer Fund 1 Peer 1 $3.6 Peer Fund 2 Peer 1 $3.4 Peer Fund 3 Peer 2 $3.3 Peer Fund 4 Peer 3 $3.1 Peer Fund 5 Peer 4 $2.9 We Have Thrived in Real Estate Capital Raising #1 Institutional Capital Raiser (2024) Largest institutional fundraise in all of Real Estate, not just for net lease
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78 70% Debt 65% Debt 30% Equity 35% Equity $100 $80 1Q22 2Q24 Debt Equity Expansion into Real Estate Credit: Blue Owl Expertise Meets Market Opportunity Entering another trillion-dollar market with a high-quality incumbent player Lending at Lower Leverage Levels Lower LTVs Driven by Re-Priced Assets and Tighter Lending Conditions Earning Higher Returns Driven by Interest Rates and Credit Spreads 0.5% 4.3%3.4% 4.7% 3.8% 9.0% 1Q22 4Q24 Credit Spread & Amortized Origination Fee One-Month SOFR Index +520 BPS 20% DECLINE IN ASSET VALUE A Favorable Point in Time to Enter Real Estate Credit ➢ Market environment creates potential to earn higher returns at lower LTVs ➢ Market participants such as banks are pulling back, creating a supply/demand imbalance ➢ Bigger capital pools with broader cost of capital at Blue Owl allows for scaled deployment ➢ Best in class team with decades of experience and track record Illustrative exampleIllustrative example
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79 18 57 152 0 20 40 60 80 100 120 140 160 Please see endnotes for additional information. We See a Generational Opportunity in Digital Infrastructure Hyperscale Capital Expenditures Growing Global Data Center Demand by Capacity (GW) Data center demand will continue to hit unprecedented heights in the coming years, necessitating trillions of dollars in spending to hit desired capacity levels Hyperscale capex continues to grow meaningfully as these companies continue their “arms race” for as much data center capacity as possible $33bn $116bn $176bn $219bn 2016 2023 2024 2025E AWS Microsoft Google 34% CAGR 15% CAGR One of the Largest Supply / Demand Imbalances We’ve Seen ➢ ~$1.1tn of new build capacity investment required over the next few years ➢ Hyperscalers are increasingly outsourcing development and operation of data centers to trusted partners like IPI ➢ It requires more than capital – we have the scale and technical expertise required
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80 179 months of Consecutive Distributions paid to investors2 7%+ Annualized Preferred Return, paid monthly1 24% Closed-End Net IRR 3 across fully realized funds #1 Net private wealth capital raiser for non -traded REIT since inception #1 Institutional capital raiser in 2024 15+ Years Blue Owl has never missed a monthly distribution to investors Demonstrating consistency, strength, and the power of scale Past performance does not guarantee future results. A Record of Achievement in Net Lease
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81 Net Lease Gary Rozier Senior Managing Director
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82 2009 2024 Raised Real Estate Fund I with $17 million of AUM First and only net lease private equity firm to raise institutional capital Transacting primarily on one-off retail properties Blue Owl was a first mover and pioneer of net lease in the private fund market 15 years ago – while new entrants have emerged, Blue Owl remains a dominant player1 Largest institutional real estate fund raised in 2024 Raised more than 75% of dedicated net lease capital in the space #1 net private wealth fund raiser across non-traded REITs First and only diversified, investment-grade asset-backed securitization Executed largest net lease data center deal in sector history $34 billion of AUM Blue Owl Is the Leader in Net Lease Real Estate
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83 And we expect to continue to scale new and existing strategies Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved. Differentiated Performance Has Driven Strong Investor Demand $0.0bn $0.1bn $0.5bn $1.3bn $2.5bn $5.2bn $1.5bn Target $3.9bn $1.1bn $2.4bn $4.8bn Fund I (2010) Fund II (2012) Fund III (2015) Fund IV (2017) Fund V (2020) Fund VI (2022) Next Vintage European Net Lease Strategy Net Lease Property Fund 2022 2023 2024 2025 Closed-End Institutional Funds Non-Traded REIT (Cumulative Raise) Open-End Institutional Fund International Strategies Total Capital Raise by Fund Type ? ?
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84 Leveraging our scale and proprietary relationships to enter an untapped market Despite significant interest from tenants with significant European footprint, Blue Owl has historically not been able to offer solutions abroad… Until now. We expect to hold a similar leadership position in the European market, strengthening our partnerships with key multi- national tenants. Expansion into Europe Is a Logical Next Step for Net Lease Blue Owl – dominant market share in net lease Very few players in European net lease
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85 $11.9T Addressable Market Investment Grade Universe – North America The Addressable Market in Triple Net Lease Vastly Overshadows Available Capital $11.2T Addressable Market Investment Grade Universe – EEA $23T+ Addressable Market Total Investment Grade Universe – North America & EEA Current market penetration of net lease is less than 1% globally Please see endnotes for additional information.
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86 77% 23% Blue Owl Net Lease Strategies Rest of Dedicated Net Lease Market Digital Infrastructure • Digital infrastructure market is expected to exceed $1 trillion of total construction need over the next few years • U.S. private manufacturing spend eclipsed $18 billion by the end of 2023 • Semiconductor market size expected to hit $1.9 trillion by 2032 Meeting Sizeable Industry Needs… Blue Owl Has Eclipsed the Rest of the Market in Dedicated Net Lease Capital Raising 1 Onshoring & Reshoring2 Investing Behind Significant Secular Themes Requiring Scaled Capital Please see endnotes for additional information.
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87 Real Estate Credit Jesse Hom CIO of Real Assets, Head of Real Estate Credit
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88 SASB market experiencing exponential growth increasing at a 15.8% CAGR over the last decade. Outstanding CMBS Single Asset Single Borrower (SASB) Volume ‘14 -’24 0% 5% 10% 15% 20% 25% 30% 35% $0 $100 $200 $300 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 SASB OREC % Market Share Introducing Prima: A Scaled Player in Public and Private Real Estate Credit #1 CMBS SASB risk retention investor 30+ year Track Record <1bp Annual realized losses since inception How We Invest: Securities Private Loans Where We Invest: Industrial Retail Hospitality Rental housing Data Center Other Past performance does not guarantee future results. Please see endnotes for additional information.
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89 Controlling more of the capital stack increases our value proposition to counterparties Expanding Our Deployment Universe As Part of Blue Owl Debt Equity Prima 0 – 55% LTV 55 – 75% LTV Third Party Lender 75 – 100% LTV Debt Insurance Solutions Real Estate Credit SMAs Commingled Fund / ORENT / Alternative Credit 60 – 75% LTV 45 – 60% LTV 0 – 45% LTV Former Prima Capital Advisors Current Blue Owl Real Estate Credit Equity 75 – 100% LTV An Illustrative Example
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90 Corporate Sale Leaseback & Digital Infrastructure, 77% Commercial Real Estate, 23% Banks & Thrifts 38.2% GSEs (Fannie and Freddie) 21.6% Insurance 15.3% CRE Securities 12.9% Non-Traditional 12.1% $4.7 Trillion Commercial Real Estate Mortgage Debt Outstanding Total Potential Addressable Market $20+ Trillion A Massive Market with Traditional Financing Sources Pulling Back Largest capital provider to the CRE market (banks) in secular pullback Potential market increases over 3x when including potential (1) net lease and (2) digital infrastructure lending opportunities. Please see endnotes for additional information.
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91 U.S. Commercial Real Estate Value Decline (2022 – 2023) And CRE value declines create better entry points -40% -35% -30% -25% -20% -15% -10% -5% 0% U.S. Office Multifamily Mall Industrial Retail Hospitality $287 $305 $322 $320 $294 $311 $295 $307 $301 $301 $598 $599 $629 $621 $595 2025 2026 2027 2028 2029 Non-Banks Total Trailing 10-Year Average Real estate values have declined meaningfully since their peak in 2022, presenting an opportunity to lend against substantially de-risked values ~$3tn of mortgage loans maturing in 2025- 20291 , creating an opportunity to lend at higher spreads and lower LTVs Commercial Real Estate Debt Maturities ($bn) The Pending Maturity Wall in CRE Presents Opportunity 3 Please see endnotes for additional information.
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92 Digital Infrastructure Matt A’Hearn Head of Digital Infrastructure
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93 Avenches Copenhagen Geneva Milan Oslo Stockholm Frankfurt Zurich Atlanta Chicago Dallas Hillsboro New Albany NoVA Seattle Silicon Valley Calgary Denver Phoenix Toronto Canberra Melbourne Osaka Perth Seoul Tokyo Blue Owl Digital Infrastructure Overview Malaysia PROPRIETARY AND CONFIDENTIAL Miami Sydney 29 Markets ~2.9 GW Leased Capacity 85 Operational & Under Construction Facilities 95% Investment Grade Tenants Expansion options and JV holdings are included where applicable. 930+ Portfolio Company FTEs
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94 $42 $61 $84 $117 $154 $184 $220 $273 $345 $435 $550 $688 $208 $298 $420 $583 $795 $1,069 $1,415 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E 2027E 2028E 2029E A Long Track Record Focused Solely on Data Centers Scale, vertical integration, and Blue Owl Digital Infrastructure’s dedicated focus positions us well in the growing marketplace Blue Owl Digital Infrastructure Capacity Capturing Hyperscale Cloud and Global AI Market Opportunity AI Cloud 6.0 GW 10.0 GW Blue Owl Digital Infrastructure Leased Capacity (GW) Global AI Cloud Revenue ($bn) Global Hyperscale Cloud Revenue ($bn) Projection $18 $310 GW 3.0 GW 4.5 GW 1.5 GW Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved. Please see endnotes for additional information.
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95 Hyperscalers are increasingly looking to lease data centers Limited Supply: Primary Market Vacancy Rates Significant Capital Demand with Systemic Supply Constraints Lease Self-build50% Indicates Current Proportion of Lease vs. Build 3-Year Trailing Avg. 2Q24 AI Cloud US 4% 2% APAC 6%8% EMEA 2%3% YoY change in hyperscale rental rates grew at a 21% CAGR from 2020 – 2024 Please see endnotes for additional information.
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96 Scale Partnership Creative solution provider with broad capabilities across entire operating and development spectrum, serving tailored hyperscaler needs Hyperscale preference for consolidated relationships on a global basis Scale Global Sites Rise in data creation driving demand for increasingly large sites with power Local presence & existing relationships to navigate supply / power constrained markets “Network effect” fuels campus expansions “Land & expand” strategy for speed & flexibility Scale Execution Vertically integrated approach for efficient problem solving and value creation Quality & consistency in customer experience Local “boots on the ground” with global market nuance familiarities Scale Team 45+ person Digital Infrastructure team, 100% dedicated to investing in digital infrastructure serving hyperscale needs Global presence across offices in the US, Europe, and Asia 900+ Global STACK team, 100% dedicated to data centers Scale Capital Sizable fund series, providing scale for capital intense projects JV partners, lenders, and creative capitalization structures Global investor base ICONIQ partnership provides tech insights and strategic capital sources Scale and Capabilities Drive Relevancy in Digital Infrastructure For illustrative purposes only.
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97 97 Hyperscalers are looking for trusted partners to build and manage their most mission critical assets While investors are looking for differentiated ways to invest behind the AI theme The Barriers to Entry Are Significant What We Offer Hyperscalers: ❑Long-standing development and operations expertise ❑Vertical integration ❑A trusted partner with a long track record to finance their most mission-critical assets ❑Flexible and scaled solutions (one-stop shop) ❑Deep pools of long-duration capital (around when needed) ❑Global presence What We Offer Investors: ❑Product differentiation ❑Long track record ❑Income generation / downside protection ❑Investment grade exposure with potential for opportunistic returns ❑A new access point to invest behind the transformational power of AI ❑The only pure-play data center focused fund of size Blue Owl Digital Infrastructure
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We’re just getting started across Real Assets…
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99 The Power of the Blue Owl Real Assets Platform Scaled & Permanent Capital Formation Broadened Origination Capabilities Enhanced Investment & Underwriting Capabilities Robust Platform Support
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100 Real Assets Has Been Our Fastest Growing Platform… And We Think That Can Continue $16 $34 $16 $14 Investor Day 2022 12/31/2024 Net Lease Real Estate Credit Digital Infrastructure Pro-forma for IPI acquisition Continued solutions for Insurance channel Next vintage flagship products in Net Lease and Digital Infrastructure Scaling of newer strategies (Europe Net Lease, Real Estate Credit commingled product, etc.) Launch of new Digital Infrastructure product in Private Wealth channel and ongoing expansion of ORENT globally $16bn $64bn Blue Owl Real Assets AUM 1
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101 Key Takeaways For Today 321 Our Real Assets business is financing the most mission- critical assets across massive secular themes such as AI and onshoring Scale matters greatly, and we are one of the market leaders in Net Lease and Digital Infrastructure, in consolidating and growing markets Each of the markets we’re in numbers in the trillions of dollars, offering an extremely long runway for growth 654 Our strategies align with Blue Owl’s DNA of creating positive investor outcomes through principal protection and income generation We have outpaced the industry in capital raising through unfavorable markets – what could we achieve with a better market backdrop? Innovation underpins our business strategy – we will continue to lean in on the meaningful market opportunities we see across investing and capital raising
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102 The Future of Data Centers Fireside Chat with Doug Ostrover and Divesh Makan
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A Short Break
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104 M&A: Our Key Tenets Panel Discussion with Marc Lipschultz, Marc Zahr, and Ivan Zinn
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105 Our Hybrid M&A Strategy Is a Complement to Robust Organic Growth Identify areas of the market with: ❑ Demand for capital that is meaningfully outstripping supply (runway for deployment and attractive risk/return) ❑ Meaningful changes or inflection points in the sources of financing (public → private) ❑ Significant total addressable markets ❑ Adjacencies in investment expertise ❑ Ability for Blue Owl to accelerate growth through scale, network synergies, and differentiated access BUY BUILD IF THEN… Roll out the Blue Owl M&A playbook: ❑ Prioritize entrepreneurial founders who join Blue Owl to further grow their businesses and have built culture forward businesses ❑ Align incentives through meaningful equity component of transaction consideration ❑ Purchase price matters (2024 acquisitions done at low-to-mid teens multiples; accretive in year 1) ❑ Moderate sized transactions (In 2024, total consideration was less than 10% of OWL’s market cap1) ❑ Create differentiated product and expand distribution across the Institutional, Private Wealth, and Insurance channels
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106 Insurance Solutions Panel Discussion with Eric Kirsch, Dhruv Narain, Jeff Walwyn, and Brian Roelke
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107 Expanding Blue Owl’s Value Proposition to Insurers 95 Existing Blue Owl Insurance Clients $35bn+ Insurance AUM Kuvare Asset Management Relationships of 5+ Years 60% Insurance Is Not A New Market For Us New professionals added with Kuvare Asset Management acquisition and subsequent hires 30+ investment professionals We Continue to Invest Heavily For Growth Approaching 30 product capabilities and growing 1 strategy Leveraging Blue Owl’s scale, further expanding investment solutions + = Our focus on downside protection, income-generating strategies is particularly well suited for insurance clients
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108 A Dedicated Suite of Solutions Direct Lending • Diversified Lending • Technology Lending • First Lien Lending • Opportunistic Lending IG Corporate Credit • Corp. Private Placements • Fund Financing • GP Financing • Public Corporates IG Asset-Based Finance • Consumer Finance • Life Settlements • Equipment Leasing • Railcar Leasing • Aircraft Financing • Solar Financing • Inv. / Trade Receivables • Royalty Financing • Whole Business Sec. • BSL / MM CLOs • SASB / Conduit CMBS • Commercial Mortgage Whole Loans • Non-Qualified Mortgages • Single Family Rental • Home Equity • Net Lease • CRE CLOs • Digital Infrastructure • GP Minority Stakes • GP Debt Financing Credit Real Assets GP Strategic Capital Our Insurance Product Map
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109 We Expect to Grow Our Insurance Business Substantially $20tn+ Asia & Oceania Americas Europe & Africa RoW 1 Global Life Annuity AUM The global life and annuity market represents a sizeable and growing opportunity Alternative asset managers currently advise on less than 15% of overall US life insurance AUM and even less globally. Strong product fit and incentive alignment will continue to drive insurers further towards alternative investment partnerships. Growing with Kuvare Expanding Relationships With Existing Blue Owl Insurance LPs Signing New Insurance Partnerships The opportunity set is massive, with insurers looking for differentiated offerings Please see endnotes for additional information.
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110 110 110 Blue Owl Insurance Solutions Overview • Natural alignment with downside protected, income generative strategies that form the core DNA of Blue Owl • Able to leverage $251bn Blue Owl platform to drive insurance asset origination and underwriting expertise • Partner with insurance clients, not compete • Asset management-only model is agnostic to individual insurance market and annuity sector trends; we serve the entire industry • Have significant infrastructure and expertise to support a scaled platform • Relative size allows for each insurance client to be prioritized and receive custom service Strong underlying cash flow generation from all products across the risk-spectrum Yield-Oriented Alternative Assets Private Asset Expertise Blue Owl Insurance Solutions Investment Grade Capability Unique, scaled origination and structuring capabilities At a Glance Key Differentiators Accommodate all capital and duration needs
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111 Positioned for Growth Through Flexible Partnership Serving as a Partner instead of a Competitor Experienced Team Added senior professionals and established key leadership following the Kuvare Asset Management acquisition, including: • Chairman, Eric Kirsch • Head of Insurance, Dhruv Narain • Chief Investment Officer, Jeff Walwyn • Head of Business Development, hired with announcement forthcoming Solution-Oriented Platform Able to help navigate the complexities of insurance asset management by advising on portfolio strategy, regulatory capital management, statutory accounting, legal considerations, and more Leading Operations Team & Infrastructure Strong infrastructure of a $251bn global asset manager and a team with deep insurance industry expertise allow us to seamlessly integrate with insurance clients Client Partnership Designed to support clients through point solutions across a broad insurance-focused product suite, as well as various flexible forms of long-term, comprehensive partnerships Sidecar Development Minority Investments Strategic RelationshipsJoint Ventures • President, Brian Roelke
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112 For illustrative purposes only. Past performance does not guarantee future results. Blue Owl Has the Capabilities & Expertise to Drive Alpha for Insurers Capital Efficiency Return GP Minority Stakes Multi-Return and Rating Spectrum of Strategies Net LeasePrivate Equity Private Equity Secondaries Tactical Opportunities Distressed Alternative Credit Direct Lending High Return, Low Capital Efficiency High Return, High Capital Efficiency IG Return, Low Capital Efficiency IG Return, High Capital Efficiency GP Debt Financing Private ABF IG RE Credit Private Corp. CLO Liabilities HY RE Credit Munis Public Equities AlternativeInvestment Grade Commodities Blue Owl Strategies offer Strong Returns and Capital Efficiency Infra. Public Corp.
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113 Bringing Blue Owl Strategies to the Insurance Market Insurer-Customized Products Across the Risk Spectrum Investment Grade & Real Estate Credit Alternatives Rated Notes and Feeders bringing capital efficiency to all Blue Owl platforms Each enabled by downside-protected investment objective and emphasis on current income Credit Direct Lending / Rated Feeder Alternative Credit / Rated Feeder Real Assets Net Lease Property Fund / Rated Feeder European Net Lease Fund / Rated Feeder Real Estate Credit / Insurance Dedicated Fund GP Strategic Capital GP Debt Financing / SMA Tailored SMAs • Able to define and adjust parameters such as rating, duration, income generation, and end market exposure through ongoing dialogue • Provides the flexibility to address unique and changing needs of insurance partners operating in all insurance and annuity markets (e.g., Life, P&C, Specialty Casualty, MYGA, FIA) and geographies (Americas, APAC, EMEA) • Expertise of Blue Owl and relative size of Insurance Solutions allow for high-touch, white- glove service for clients
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114 Institutional Business James Clarke Global Head of Institutional Business Development
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Partnership Approach | ~3x growth in capital commitments Team Expansion | 2x+ increase in team size Growing Presence | 6 new locations expanding our coverage footprint Broadening Client Base | 450+ new clients Differentiated Offerings | 7 new investment strategies Deepening Client Franchise | $25bn+ growth of capital commitments across 2 or more platforms 95+ Headcount 11 Offices 900+ Clients 15 Strategies $100B+ Capital $30B+ of Overlap1 115 The Growth of Blue Owl’s Institutional Business Since Our Last Investor Day
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116 Growth in Institutional Assets Allocations to Alternatives is Expected to Increase $54 $34 $11 $72 $42 $16 Pensions Insurance Sovereign Wealth 2022 2028E ($ trillions) (% of Investors) Institutional Client Demand for Alternatives Is Increasing... 25% 48% 55% 55% 42% 36% 80% 90% 91% Real Estate Private Equity Private Debt Increase Allocation Maintain Allocation …And we’re here to help our clients benefit from this opportunity Please see endnotes for additional information.
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117 10% 21% 31% 28% 14% 12% 8% 5% 3% Insurance Public Pension Corporate Pension Sovereign Wealth Family Office E&F Other 100+95+ 120+ 15+ 250+ 85+ 72% 18% 9% 1% North America Asia Pacific Europe & Middle East Rest of World Investor Type by Equity Commitment1 # of Investors Why Institutions Partner with Us 3 235+ Commitment We strive to deliver best-in-class service and capabilities Consistency We are an extension of our clients Collaboration We are dedicated to the success of our clients Other KAM2
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118 We have deepened and doubled our client base 26% 18% 20% 17% 14% 14% 20% 14% 20% 37% 2022 Investor Day Today 95% 91% 5% 9% 2022 Investor Day Today Commitment to Only 1 Platform Commitment to 2 or More Platforms <$100mn $100mn – <$250mn $250mn – <$500mn $500mn – <$1bn $1bn+ Opportunity for Cross Selling2Growth of Clients and Commitments1 118 The Opportunity to Deepen and Grow Engagement is Significant 3 3
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119 Our success in Real Assets demonstrates Blue Owl’s ability to accelerate growth of a platform’s future vintages Creating Value with Strategic Acquisitions… $1.3 $2.5 $5.2 Fund IV Fund V Fund VI Future Vintage Growth of Net Lease Funds Impact of Blue Owl Institutional Franchise on Fund VI Blue Owl Acquires Oak Street 100%+ increase in total fund size …And we’re already running the same playbook with Alternative Credit and Digital Infrastructure ✓ ~80% of Fund V investors re-upped into Fund VI1 ✓ ~30% of commitments were from clients new to Oak Street ✓ ~30% of commitments driven from 30 new clients ✓ ~25% of commitments from international regions ($ billions) Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved.
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120 120 How we are going to get there London New York Hong Kong Menlo Park Sydney Singapore Tokyo Dubai Amsterdam Frankfurt Chicago
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121 121 The Future of Institutional Best-in-Class Client Service Serve our clients and help them stay ahead of the curve Domestic Expansion and International Penetration Deepen relationships and partner with more clients in more places Value Creation with New Solutions Unlock opportunities through expanded capabilities Access to all of Blue Owl Deliver the full depth and breadth of the firm
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122 Private Wealth Sean Connor President and CEO of Blue Owl Global Private Wealth
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123 The Private Wealth Opportunity Set Is Enormous and Still in the Early Innings Individual investors are under-allocated to alternatives $213tn $294tn 2023 2028E Global private wealth is a large and growing market 20% 3% Institutional Wealth ~$30-40tn TAM if allocations rise to 10-15% Every 1% of allocation = $2-3tn Private Wealth Assets Growth % Allocations to Alternatives Please see endnotes for additional information.
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124 10% 1% Average of Top 6 Managers Average of Top 7-25 Managers $12 bn $1.7 bn Average of Top 6 Managers Average of Top 7-25 Managers Market Share is Consolidating Amongst a Small Number of Managers Creating Significant Barriers to Entry $14bn 11% Average Market Share of Each Manager 2024 Average Equity Raised of Each Manager 2024 Blue Owl is one of the few firms with the scale, diversification, and innovative approach necessary to succeed Please see endnotes for additional information.
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125 125 Please see endnotes for additional information. A Market Leader in Fundraising and Favorability In non-traded REIT gross / net sales#1 In non-traded BDC gross / net sales Alts capital raiser for past 3 years Blue Owl is a market leader #2 We are a newer name in private markets… …But have already distinguished ourselves by putting clients first. 55% 59% 60% 69% 72% 77% 79% 81% 84% 90% Peer I Peer H Peer G Peer E Peer B Peer F Peer A Peer C BLUE OWL Peer D Total brand awareness Know a lot/ a fair amount 99% 97% 97% 96% 96% 96% 95% 94% 81% 59% 68% 53% 60% 75% 64% 63% 46% 52% 33% 20% Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I BLUE OWL Favorability toward Blue Owl and peers 3 Top
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How have we done it? We have an enduring focus on the client
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127 Best-in-Class Team We Have Built a Client-Centric and Multi-Faceted Business Designed to Deliver for the Wealth Investor 140+ employees across 7 core regions and 10+ global offices US, Canada, Latin America, Europe Asia-Pacific, Japan, Australia Partnerships and distribution Global footprint with dedicated local and channel coverage Deep partnerships with largest wealth management platforms Products and solutions Suite of evergreen funds designed for individual investor Investment capabilities spanning the risk/return spectrum Marketing, education, and client service Extensive education and marketing function Dedicated team of portfolio strategists Analytics and data Modern and robust tech stack Operational infrastructure to support scale
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128 Serving 125,000+ clients globally, ~4.0x growth since 2021 Total Equity Raised Total Annual Equity Raised Average Evergreen Monthly Raise Transacting Platforms Evergreen Access Points $20 billion $52 billion $4 billion $14 billion ~$775 million~$150 million ~5.0x ~2.5x ~3.5x 12+1 ~740~185 ~4.0x Scale Diversification 2021 Today GrowthThat Has Delivered Transformational Growth Past performance does not guarantee future results.
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129 Underpinned by a Strong Track Record of Innovation Pioneer in Perpetual, Non-Traded BDCs Early Mover in Global Distribution Pioneer in Perpetual Private REITs $39 billion Evergreen BDC AUM #1 REIT fundraiser ✓ Local products ✓ Local currencies ✓ Local account eligibility Award-winning digital & in-person education platform Please see endnotes for additional information.
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130 That has Led to an Industry-Leading Wealth Platform at One of the Largest and Fastest Growing Alternative Asset Managers Top 3 $52bn 140+ Equity Raised Since Inception Dedicated Private Wealth Employees Alts Capital Raiser for Past 3 Years Please see endnotes for additional information.
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What’s next? We will continue redefining alternatives for the individual investor
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132 There Is Significant Growth Potential Across Our Largest Markets 3% 15% $1tn $5tn Current Alts Allocation Potential Alts Allocation 51% 31% 22% 14% Japan Europe Australia U.S. U.S. Wealth Market Cash as a % of Financial Assets Further our Global ExpansionDeepen Penetration in North America How we will do it Educate The Nest by Blue Owl yielded +50,000 views upon launching Syndicate 64% of transacting platforms have only done 1 product Innovate Multiple new evergreen access points launching this year While Blue Owl global annual sales grew +5.5x since 2021, global markets are even further behind in allocating to alternatives Blue Owl US annual sales doubled since 2021, but the US wealth channel remains significantly under allocated to alternatives Please see endnotes for additional information.
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133 $12bn $34bn +$7bn +$4bn +$11bn Blue Owl Net Lease AUM At Signing ORENT Wealth (Flagship) Institutional & Other Blue Owl Net Lease AUM Today We have a Proven Playbook That Will Be Applied to New Strategies Attributes at Close Wealth Initiatives +$11bn Wealth Differentiated investment approach Established track record Multi-trillion addressable market Limited Wealth resources Net Lease Real Estate Alternative Credit Digital Infrastructure Diversify and scale flagship funds Create dedicated Wealth product Raised ~30% of OREF VI Launched ORENT In progress Coming 1H’25 In progress Coming 1H’26 Wealth Impact Same team. Same vision. New opportunities.
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134 Significant Barriers to Entry Are a Catalyst for M&A The Blue Owl Private Wealth Difference Our team Our scale Alternative asset managers looking to access private wealth are increasingly looking for partners Our track record 79% don’t have a dedicated private wealth team 75% don’t have a dedicated strategy for private wealth investors The biggest challenges identified: • Resources • Education • Regulation Our capacity to do more Our partnerships Please see endnotes for additional information.
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135 Retirement Model Portfolios Strategic Partnerships $30tn Retirement Market $12tn Managed Accounts Assets $50tn Estimated Real Estate and Insurance Assets $47tn U.S. Households Mutual Fund and Equity Investments New Frontiers Tax-Advantaged Solutions ~~ ~~ New Frontiers Will Continue to Drive Growth Please see endnotes for additional information.
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136 Key Takeaways For Today 321 The Private Wealth opportunity remains in the early innings, and the addressable market is massive We were early believers in the opportunity, and our incumbency is reflected in our continued market leadership Given the barriers to entry, we believe there will be a handful of scaled players and we expect to be one of them 654 There has been robust demand for our existing strategies, and we continue to expand geographically and increase advisor adoption for these products We also intend to add to the lineup with Alternative Credit and Digital Infrastructure We see continued expansion of alts in Private Wealth, and every 1% of incremental allocation is potentially trillions of dollars of flows to the space
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137 Financial Review & Outlook Alan Kirshenbaum Chief Financial Officer
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138 57 191 At Listing 2024 62 251 At Listing 2024 43 160 At Listing 2024 AUM ($ billions) Growth of ~4x in AUM & FPAUM in less than 4 years FPAUM ($ billions) Permanent Capital ($ billions) Significant Growth in AUM Since Our Listing 49% CAGR 46% CAGR 41% CAGR 1 1 1
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139 792 1,249 1,568 2,038 2021 2022 2023 2024 FRE Management Fees ($ millions) CAGRs of over 30% in all key metrics since listing FRE Revenues ($ millions) Fee Related Earnings ($ millions) Industry Leading FRE Management Fees, FRE Revenues and FRE Growth 37% CAGR 34% CAGR 32% CAGR 900 1,322 1,660 2,171 2021 2022 2023 2024 547 800 998 1,253 2021 2022 2023 2024
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140 ✓ Predictable, durable and highly visible earnings growth with less volatility than our peer set 90+% of FRE Management Fees from permanent capital vehicles Best-in-class average fee rate Highly favorable FRE margin Significant earnings power embedded in the business Balance sheet light with ample liquidity and flexibility Permanent capital base creates earnings layer cake 100% of earnings are FRE We Have a Differentiated Business Model and Financial Profile ✓ ✓ ✓ ✓ ✓ ✓
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141 - 100 200 300 400 500 600 0 100 200 300 400 500 600 700 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 FRE Management Fees Avg. SOFR Rate Direct Lending Spreads S&P 500 Index Growth and stability through market cycles Our FRE Management Fees Have Grown for 15 Consecutive Quarters SOFR / DL Spreads1 (bps) FRE Mgmt Fees ($mn) 3,973 5,882
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142 142 Resilient growth through market cycles due to: • Strength of wealth fundraise • Deployment of capital 100 bps change in SOFR impacts FRE Management Fees by ~$55m SOFR / DL Spreads1 (bps) Part I Fees ($mn)30+% CAGR Part I Fees Have Grown Meaningfully Through Different Market Cycles - 20 40 60 80 100 120 140 160 0 100 200 300 400 500 600 700 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Part I Fees Avg. SOFR Rate Direct Lending Spreads
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143 143 26% 30% 37% 12% 10% 15% 19% 15% 22% 2023 2024 2021 - 2024 CAGR Blue Owl Peer Average Highest Peer Our FRE Management Fee Growth Is Significantly Outpacing Our Peers Since 2021, our FRE Management Fee growth has been 2.5x the peer average and 1.7x the highest peer 2.1x Peer Avg. 2.5x Peer Avg. 3.1x Peer Avg. 1
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144 26 106 31 66 20 57 191 2Q'21 2024 Credit GPSC Real Assets The Permanency and Duration of Our Capital Base Is Distinct ~$135m of incremental annualized FRE Management Fees upon listing of Software BDC Permanent Capital AUM Duration of FRE Management Fees Embedded Earnings Power 3.4x ($ billions) 20%+ growth over 2024 FRE Management Fees 9% Permanent Capital Other 91% from Permanent Capital ~$435m of embedded earnings $23bn of AUM not yet paying fees will drive ~$300m of FRE Management Fees upon deployment
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145 145 So Our Earnings Are Not Subject to Much of the Market Volatility That Our Peers Are Earnings durability through… ✓ inflationary periods ✓ geopolitical events ✓ rate volatility ✓ significant slowdowns in capital markets activity Distributable Earnings Growth (Indexed to 100) - 50 100 150 200 250 300 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Blue Owl Peer Weighted Average S&P 500 Index Global M&A Volumes1
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146 1.6 9.8 2021 2024 1.9 7.3 2.0 3.7 2.7 3.9 13.7 2021 2024 Credit GPSC Real Assets Large and growing market opportunity, but significant barriers to entry Meaningful growth potential in our existing business as investor allocations grow from ~3% Scaled, established participants like Blue Owl are driving market consolidation Total Private Wealth Fundraise Evergreen Wealth Product Fundraise1 ($ billions) ($ billions) 3.5x 6.0x Our Leading Private Wealth Franchise Is Well Positioned for Future Growth Further upside potential as we launch new products and expand into new markets Well positioned to penetrate “new frontiers” of the wealth opportunity (retirement, model portfolios, etc.)
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147 1.5 3.8 7.0 Target Vintage I Vintage II Vintage III Vintage IV 0.1 0.5 1.3 2.5 5.2 Vintage II Vintage III Vintage IV Vintage V Vintage VI Vintage VII Exceeded Hard Cap Our Closed-End Flagship Funds Have Been Scaling GP Stakes - Large Cap Equity Real Assets - Net Lease Real Assets - Digital Infrastructure ($ billions) ($ billions) ($ billions) 1.3 2.2 5.3 9.0 12.9 13.0 Target Vintage I Vintage II Vintage III Vintage IV Vintage V Vintage VI Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved.
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148 7 10 12 17 25 35 42 56 2 3 5 8 15 19 23 3 7 12 16 22 33 50 60 79 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029 Diversified Lending BDCs Software Lending BDCs Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved. Our Direct Lending BDCs Have Grown to $79bn of AUM ($ billions)
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149 Insurance Solutions Provides Us with Another Scaled Distribution Channel That Is Poised for Significant Growth World class team and resources Massive origination engine across asset classes Downside-protected, income-oriented strategies are in our DNA Balance sheet light Insurance model Balance Sheet Light Our differentiated strategy and capabilities… …enable significant growth opportunities Platform designed to scale Product innovation tailored to insurers Large addressable market to partner with insurers without competing Significant opportunity to attract and expand Insurance LP relationships
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150 Length of Track Record1 Our Strategies That Existed As of Our Last Investor Day Direct Lending GP Strategic Capital2 Net Lease AUM Today 2016 2011 $98bn $66bn $34bn 2015 20202010 2009
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151 Liquid Credit & Other RE Credit Investment Grade Credit Alternative Credit Digital Infrastructure3 1992 2015 2023 (GP Led Secondaries) 2006 2016 Length of Track Record1 $10bn $15bn $18bn $11bn $14bn Our Strategies Today 2015 (Liquid Credit) 2012 (Healthcare) Direct Lending GP Strategic Capital2 Net Lease AUM Today 2016 2011 $98bn $66bn $34bn 2015 20202010 2009 Diversification into the largest growth areas of alternatives with the benefit of long track records of success
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152 We Have a Playbook and Track Record of Growing Our Acquired Businesses We believe we can replicate this type of growth with Atalaya & IPI driven by our product innovation 0 50 100 150 200 250 FRE Revenue (at signing) Fund VI ORENT Other Current Earnings Power $12.4bn 2.7xAUM $33.9bn ~80 bps +35%Fee Rate 108 bps Fund V $2.5bn 2.1xFund Size Fund VI $5.2bn 3x + Oak Street At Signing1 Net Lease Today 2020 Vintage 2022 Vintage Permanent Capital $14.3bn$4.7bn 3.0x Wealth Dedicated Product AUM $ - $7.0bn
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153 1.3 3.1+ 2024 2029 Target 2.0 5.1+ 2024 2029 Target 251 500+ 2024 2029 Target FRE Management Fees Fee Related Earnings AUM ($ billions) ($ billions) ($ billions) 20+% CAGR 20+% CAGR 2x+ Growth We Expect to More Than Double Key Metrics Over the Next 5 Years Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved.
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154 Credit • List merged Software Lending BDC • Continued strong fundraise across our Direct Lending wealth products (OCIC & OTIC) • New and adjacent product launches, including an Alternative Credit wealth product • Continued market leadership and fundraise of our large cap GP Minority Stakes strategy • Additional strip sale and continuation vehicle transactions • Continued strong fundraise into our Net Lease wealth product (ORENT) • Continued growth of our Net Lease closed-end flagship funds • Scaling of the Digital Infrastructure strategy, including the launch of a wealth product GP Strategic Capital Real Assets Core Growth Drivers by Platform • Scaling of our recent acquisitions and newer investment strategies • Growth of Blue Owl Insurance Solutions • Future M&A opportunities • Continued global expansion of the firm Other Drivers Across Platforms Drivers of Our Future Growth
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155 1 ▪ Scaling of our recent acquisitions and newer investment strategies ▪ Growth of Blue Owl Insurance Solutions ▪ Future M&A opportunities ▪ Continued global expansion of the firm Drivers of Our Future Growth 2.5x Growth Core Growth Drivers Other Key Drivers 2 3 4 5 FRE Management Fees 6 Strong fundraise across wealth products ▪ Direct Lending (OCIC & OTIC) ▪ Net Lease (ORENT) ▪ Launch of an Alternative Credit Interval Fund ▪ Launch of a Digital Infrastructure wealth product Assume $10bn to $15bn+ raised per year across products List merged Software Lending BDC Continued growth of our Net Lease closed-end flagship funds Scaling of the Digital Infrastructure strategy Continued market leadership and fundraise of our large cap GP Stakes strategy 2024 2029 Target $2.0 bn $5.1 bn + 4Q’24 Annualized Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved.
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156 31 39 69 85 136 31 40 49 54 66 15 21 27 49 62 94 138 166 251 500+ At Listing 2021 2022 2023 2024 2029 Target Credit GPSC Real Assets …and remember, the AUM that we raise is very different than our peers 4x growth in less than 4 years We Believe Our AUM Will Exceed $500 Billion by 2029… ($ billions) 2x+ Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved.
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157 157 Every $1 raised by OWL generates 3x more FRE than $1 raised by our peers on average Our Velocity of Capital Is Different Than Our Peers OWL Peer Avg FPAUM Raised 1,000 1,000 (-) Capital Distributed (325) (500) = FPAUM Retained 675 500 FPAUM Retained 67% 50% Average Fee Rate ~140 bps ~80 bps FRE Margin 59% 54% OWL Generates More FRE Per Dollar Raised 3.0x More capital retained Higher average fee rate Attractive margin 1
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158 Since Our Last Investor Day Inclusion in the Russell Indices Moved to a fixed dividend Meaningfully changed the composition of our shareholder base Significantly increased our public float Since Last Investor Day… Balance Sheet Light Model Since Our Last Investor Day Less capital intensive Since Our Last Investor Day Bulk of earnings paid out as dividends Lower earnings volatility; 100% FRE business Maintain strong liquidity position ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ We Continue to Focus on Maximizing Shareholder Value and Maintaining Our Balance Sheet Light Model Registered our unsecured bonds✓
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159 $15.5+ bn of current float 140%+ total return with dividends Expanded shareholder base 25% CAGR Fixed $0.90 per share (2025 dividend) $26.01 per share 40% of Shares Public Float Dividend Type Annual Dividend Stock Price Shareholder Value Creation Since Our Last Investor Day Variable $0.46 per share (2022 dividend) $11.24 per share1 24% of Shares Last Investor Day May 2022 January 31, 2025
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160 Key Takeaways We have a differentiated business model that is built on permanent capital and is 100% FRE5 We have a leading Private Wealth franchise, strong and growing Institutional relationships and expanded Insurance capabilities 4 We are well positioned in the largest secular growth areas of alternatives including direct lending, alternative credit, GP stakes, and digital infrastructure 3 We can replicate the growth of our net lease business with Atalaya, IPI, and others2 We expect to grow our FRE Management Fees and FRE by a 20+% CAGR over the next 5 years We expect to more than double our AUM to $500bn+ by 20291 6 We will continue to reinvest into the long-term growth of our business 7 We will continue to pursue new acquisitions that have a strong strategic rationale and large addressable markets Projections and forward-looking statements are based on various assumptions and there is no guarantee expectations will be achie ved.
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161 161 Diversification Innovation Scale More than growth in all key metrics including stock price 2x
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162 Q&A
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163 Endnotes
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164 Page 5 – Our Shareholder Base Has Meaningfully Changed Since Listing 1. Based on latest available public data as of 12/31/24. Page 6 – Over the Past 3 Years… 1. Represents close price on 5/19/22. Page 11 – Blue Owl Evolution Since Listing 1. At Listing metrics as of 6/30/21; FRE Revenue is FY21. 2. Today metrics as of 12/31/24; FRE Revenue is FY24. Today Stock Price and Today Market Cap as of 1/31/25. Page 12 – We Have Accomplished a Significant Amount in the 3+ Years We’ve Been Public 1. Other includes GP Debt Financing, Professional Sports Minority Stakes, Healthcare, and Strategic Equity. Page 15 - Our Strategies That Existed As of Our Last Investor Day 1. Length of track record includes length of time before Blue Owl acquired business where applicable. 2. GP Strategic Capital is inclusive of GP Minority Stakes, GP Debt Financing, and Professional Sports Minority Stakes. Page 16 - Our Strategies Today 1. Length of track record includes length of time before Blue Owl acquired business where applicable. 2. GP Strategic Capital is inclusive of GP Minority Stakes, GP Debt Financing, and Professional Sports Minority Stakes. 3. IPI acquisition closed on 1/3/25. Page 17 - We Have Demonstrated Differentiated Growth Across Key Metrics 1. Growth calculated using the last twelve months 3Q24 and the last twelve months 1Q22. Peer group includes Apollo Global Management, Inc “APO”, Ares Management Corporation “ARES”, Blackstone Inc. “BX”, The Carlyle Group Inc. “CG”, and KKR & Co. Inc. “KKR”. Page 18 - Reflecting Both Strength and Stability of Growth Through Various Market Environments 1. 2024 DE Growth is calculated using the twelve months preceding 3Q24 and the twelve months preceding 1Q22. Peer group includes Apollo Global Management, Inc “APO”, Ares Management Corporation “ARES”, Blackstone Inc. “BX”, The Carlyle Group Inc. “CG”, and KKR & Co. Inc. “KKR”. Endnotes
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165 Page 19 - Blue Owl Is Levered to the Largest Secular Growth Trends in Alternatives Sources: Direct Lending Industry AUM: Preqin Future of Alternatives Alternative Credit Addressable Market: Federal Reserve Z.1 Financial Accounts of the United States Q3 2023, FRB NY Quarterly Report on Household Debt and Credit November 2023, SIFMA statistics Q3 2023, Secured Finance Foundation 2023 Secured Finance Market Sizing and Impact Study, 2022 Equipment Leasing & Finance Industry Horizon Report, CFPB Fact Sheet March 30 2023, Preqin Private Debt 2022 data, S&P Global Credit Trends Report October 2, 2023, Ginnie Mae Global Markets Analysis Report December 2023, Interval Fund Tracker Most Recent Quarter Data 2023. MSI research Q4 2023. With Intelligence, Private Debt Investor, Preqin, NAIC, Morgan Stanley Into the Great Unknown November 19, 2023, Private Equity International: Sizing the NAV finance market December 1, 2023, company websites, MSI research Q4 2023 PP&E: Investable universe based on combined book value of net property, plant and equipment for all investment-grade rated entities in North America with an investment grade credit rating from Standard & Poor’s. Source: Standard & Poor’s Capital IQ as of April , 2024. Standard & Poor’s Capital IQ as of April 8, 2024 Hyperscaler CapEx Spend: Newmark: 2023 U.S. Data Center Market Overview & Market Clusters & Morgan Stanley Research Page 20 - Allocations to Alternatives Continue to Increase Across Institutional and Private Wealth Sources: Assets: PwC Asset and wealth management revolution 2023: The next context, PwC Asset and wealth management revolution 2024: Unleashing the transformative power of disruptive technology Allocations: Preqin Institutional Allocation Study 2024 & Preqin Promising opportunities in alternative investments as industry nears $23tn by 2027 Page 21 - We See a Very Long Runway Ahead for Alts in Private Wealth Sources: 401k market: Statista Individual asset allocations: Preqin Promising opportunities in alternative investments as industry nears $23tn by 2027 Top 6 firm market share: Stanger Market Pulse Page 23 – We Are Resourced to Support Meaningful Growth 1. Pro forma for IPI acquisition. Page 24 - And Continue to Broaden and Diversify Our Investor Base Data represents capital committed to the Blue Owl funds by investors at the time of each investor’s commitment. 1. KAM allocation refers to equity commitments acquired with the Kuvare Asset Management acquisition, as well as subsequent flows into legacy Kuvare Asset Management products Endnotes
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166 Page 25 – As the Industry Consolidates, Blue Owl’s Scale Is Even More Valuable to Potential Partners 1. Represents baseline of 9/30/21. Page 32 - We Believe Our Stock Has Meaningful Upside Potential 1. Based on Visible Alpha consensus estimates, pulled on 1/28/25 Peer group includes Apollo Global Management, Inc “APO”, Ares Management Corporation “ARES”, Blackstone Inc. “BX”, The Carlyle Group Inc. “CG”, and KKR & Co. Inc. “KKR”. Page 35 – Direct Lending Remains Our Largest Credit Strategy 1. “Investor Day 2022” data are as of 3/31/22. Page 36 - Fundraising Momentum Has Been Strong with Continued Interest from Institutional and Wealth Investors Sources: Institutional investors: Preqin Institutional Allocation Study 2024 Wealth advisers: The State of Alternative Investments in Wealth Management (December 2024) Page 37 - Blue Owl Direct Lending by the Numbers 1. As of 9/30/24. 2. Reflects directly originated new deals and excludes add-ons, transactions for existing borrowers, liquid credit deals, and equity only transactions. 3. Net returns are represented by a composite comprised of Credit products within the direct lending investment strategies reported in the Blue Owl quarterly filings. The composite excludes products that have launched within the last two years as such information is generally not meaningful. Page 38 - Proven Ability to Originate & Lead Marquee Financings 1. Based on originations volume of directly originated debt investments. 2. Reflects directly originated new deals and excludes add-ons, transactions for existing borrowers, liquid credit deals, and equity only transactions. Source for Blue Owl-led deals: LevFinInsights Page 39 - Our Value Proposition Drives Better Spreads vs. Public Markets Sources: Blue Owl & Pitchbook LCD Endnotes
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167 Page 40 – Growth Has Been Driven by Our Leading BDC Platform 1. Reflects merger of OBDC and OBDE in January 2025. 2. Diversified statistics reflect Blue Owl Capital Corporation as a representative diversified lending portfolio. 3. Tech statistics reflect Blue Owl Technology Finance Corp. as a representative technology lending portfolio. Page 41 - Blue Owl Is Taking Outsized Market Share in a Growing Asset Class Source: Preqin Page 43 – Greater Adoption of Direct Lending Has Been Driven by a Number of Factors Source: KBRA DLD Scorecard Page 44 - Significant Growth Opportunity Remains for Direct Lending Sources: Dry Powder: Preqin Market Share: Direct Lending AUM is sourced from Preqin. Public Market Outstandings is sourced from Pitchbook and incorporates the public loan and high yield markets. 2029 direct lending market share is illustrative in nature and based on Preqin’s projected direct lending AUM and growth in the public markets consistent with historical trends. Page 48 - Introducing Blue Owl’s Alternative Credit Strategy (f/k/a Atalaya) 1. Represents awards won by Atalaya. Private Debt Investor ("PDI") is an independent organization that is not affiliated with Blue Owl. PDI's selection process involved an initial fee-free application where managers were nominated for award categories and subsequently subject to an online reader poll that prompts readers to vote for a particular firm in one or more of multiple enumerated categories, including Lender of the Year. The nomination criteria are inherently subjective and account for a mixture of qualitative and quantitative criteria, including non-financial considerations. Blue Owl has provided compensation to Private Debt Investor in connection with sponsorship in other publications but not in connection with the consideration for or receipt of these awards. Award recipients were announced by PDI in February of 2024. Blue Owl is unaware of any factor that could call into question the validity of its selection as PDI's 2023 Specialty Finance Lender of the Year, and the award is not an indication of Blue Owl’s future performance. There can be no assurance that another organization or different sampling process would achieve similar results. Endnotes
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168 Page 52 - Why Now? A Large and Underpenetrated Market Sources: Estimated Addressable ABF Market: Federal Reserve Z.1 Financial Accounts of the United States Q3 2023, FRB NY Quarterly Report on Household Debt and Credit November 2023, SIFMA statistics Q3 2023, Secured Finance Foundation 2023 Secured Finance Market Sizing and Impact Study, 2022 Equipment Leasing & Finance Industry Horizon Report, CFPB Fact Sheet March 30 2023, Preqin Private Debt 2022 data, S&P Global Credit Trends Report October 2, 2023, Ginnie Mae Global Markets Analysis Report December 2023, Interval Fund Tracker Most Recent Quarter Data 2023. MSI research Q4 2023. Penetration of Current Private Corporate Market: Morgan Stanley Into the Great Unknown November 19, 2023, Preqin Private Debt 2022 data, Interval Fund Tracker Most Recent Quarter Data 2023, S&P Global Credit Trends Report October 2, 2023. Current Private ABF: With Intelligence, Private Debt Investor, Preqin, NAIC, Morgan Stanley Into the Great Unknown November 19, 2023, Private Equity International: Sizing the NAV finance market December 1, 2023, company websites, MSI research Q4 2023. Page 53 - Offering Investors Differentiated Exposure in Private Credit 1. Relative to broadly syndicated corporate direct loans. Sources: Federal Reserve Z.1 Financial Accounts of the United States Q3 2023, FRB NY Quarterly Report on Household Debt and Credit November 2023, SIFMA statistics Q3 2023, Secured Finance Foundation 2023 Secured Finance Market Sizing and Impact Study, 2022 Equipment Leasing & Finance Industry Horizon Report, CFPB Fact Sheet March 30 2023, Preqin Private Debt 2022 data, S&P Global Credit Trends Report October 2, 2023, Interval Fund Tracker Most Recent Quarter Data 2023. MSI research Q4 2023. Page 55 - Structuring to De-Risk Consumer & Commercial Credit 1. Metrics representative of Alternative Credit Asset Income strategy only from inception through September 2024. 2. Net IRR is 9.8% as of 9/30/24. Page 61 - We Have a More Diversified Set of Growth Drivers Propelling Us Forward 1. “Investor Day 2022” data are as of 3/31/22. Endnotes
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169 Page 65 – High Quality Performance Over Multiple Vintages 1. Net Blended MOIC formula: (Cash Distributed to LPs + LP NAV) / (ITD LP Called Capital) as of the reporting date. Net Blended MOIC is presented on a cumulative basis and is not annualized. Net Blended MOIC includes the cash flows and NAVs of all LPs of all fee experiences, excluding the SLP. 2. Current Net Blended DPI formula: (Cash Distributed to LPs) / (ITD LP Called Capital) as of 12/31/2024. Net Blended DPI is presented on a cumulative basis and is not annualized. Net Blended DPI blended includes the cash flows of all LPs of all fee experiences, excluding the SLP. 3. MSCI Burgiss fund criteria includes all equity generalist and equity buyout funds with a minimum size of $5bn. Note: Blue Owl GP Stakes (“GPS I”) and Blue Owl GP Stakes II (“GPS II”) are excluded from this table as Blue Owl believes they pursued a different strategy than Blue Owl GP Stakes III (“GPS III”), GP Stakes IV (“GPS IV”) and GP Stakes V (“GPS V”). GPS I and GPS II were primarily focused on acquiring minority equity stakes in institutionalized hedge fund firms. GPS III, GPS IV and GPS V seek to build diversified portfolios of minority equity stakes in institutionalized private equity firms. For purposes of this presentation, “private equity firms” include those investment firms that generate the majority of their revenues from closed-end fund structures, which would include buy-out, venture capital (VC), growth equity, distressed debt, infrastructure, private credit, energy, real estate and other strategies. Page 66 - Our GP Minority Stakes Strategy Combines Opportunistic Return Potential and Attractive Yield 1. Net Multiple on Invested Capital (“MOIC”) formula: (Cash Distributed to LPs + LP NAV) / (ITD LP Called Capital) as of the reporting date. Net MOIC is shown for the highest fee payer and is calculated based on actual performance for a representative highest fee-paying investor in each the Blue Owl onshore feeder and the Blue Owl offshore feeder on a blended basis as of the reporting date. 2. Current Net Distributions to Paid-in (“DPI”) formula: (Cash Distributed to LPs) / (ITD LP Called Capital) as of 12/31/2024. Net DPI is shown for the highest fee payer and is calculated based on actual performance for a representative highest fee-paying investor in each the Blue Owl onshore feeder and the Blue Owl offshore feeder on a blended basis as of 12/31/2024. Page 67 - Our Partner Managers Have Seen Meaningful Growth… 1. Asset exposure data as of September 30, 2024 or latest available as reported by each Partner Manager. Past performance is not indicative of future results. For illustrative and discussion purposes only and does not constitute an offer or a solicitation with respect to the purchase or sale of any security. Private Debt exposure includes credit businesses of PE-focused firms that are run as adjacent products. Underlying Fund and Portfolio Company count based upon information provided by Partner Managers and includes GPS III-V’s existing Partner Managers as of June 30, 2024. Includes all Portfolio Companies with a fair market value greater than zero. Note this excludes Public Credit investments and CLO AUM. Blue Owl does not control Partner Manager investment decisions. There is no guarantee the Fund’s portfolio will exhibit similar attributes or characteristics. Diversification does not guarantee a profit or protect against a loss in a declining financial market. This data excludes WarwickRe which is a reinsurance business, credit investments (Arcmont, HPS, Golub, CBF, and Sixth Street), public names (Blue Owl, Bridgepoint), new leaders (Growth Curve) and managers CrossHarbor and RXR. Endnotes
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170 Page 68 - We Remain the Clear Market Leader in GP Minority Stakes 1. Includes capital raised for GP Stakes Fund VI and the GP Stakes Advantage Fund as of 12/31/2024. Dotted line denotes target size. Sources: Company announcements and Preqin Pro (fund series analysis) as of 1/08/2025 Page 69 - Providing Growth Capital to a Growing Industry Sources: Pitchbook, accessed April 2024. Pitchbook “Skin in the Game: Why GPs are putting more money into their own funds.” Investec “GP Trends 2021 Report.” Page 71 - Our Competitive Advantages Are Significant 1. Represents Debt and Equity investments across Blue Owl GP Stakes I-V, the Blue Owl Financing Fund and the Blue Owl GP Stakes Advantage Fund. 2. Represents Debt and Equity partnerships across Blue Owl GP Stakes I-V, the Blue Owl Financing Fund and the Blue Owl GP Stakes Advantage Fund. 3. Transaction Multiple calculated as (Total Purchase Price) / (Blue Owl’s Share of Average Projected Year 1, Year 2 and Year 3 Distributable Earnings, per underwriting). 4. Represents transactions by GP Stakes vehicles since inception to September 30, 2024. Page 72 - Our Scale Creates Leverage in Purchase Prices 1. Transaction Multiple calculated as (Total Purchase Price) / (Blue Owl’s Share of Average Projected Year 1, Year 2 and Year 3 Distributable Earnings, per underwriting). Public Market Comparables include Blackstone, Carlyle, Apollo, KKR, Blue Owl, EQT and Ares at 90 day rolling average prices as of 12/31/24. Page 73 - The Opportunity Set for Deployment Remains Robust 1. As of September 2023. GP Stakes’ Total Addressable Market reflects the Blue Owl GP Stakes team’s estimate of private capital managers that would be potential investment opportunities by GP stakes buyers focusing on large ($10 billion AUM+), institutionalized private capital firms. Evaluation criteria include, but are not limited to, investment strategy, historical fundraising, track record, ownership structure and estimated profits. 2. Includes total commitments for GPS I-V and total capital raised as of 12/31/24 for GPS VI and GPS Advantage. Page 77 - We Have Thrived in Real Estate Capital Raising 1. Competitors 4Q24 tender amounts are excluded. Sources: Private Wealth: Stanger Market Pulse December 2024 Institutional: PERE Fundraising Report Full Year 2024 Endnotes
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171 Page 79 - We See a Generational Opportunity in Digital Infrastructure Sources: Hyperscale Capex: RBC Generative AI Update (November 2024), Company Filings: 10Ks (2017), The Official Microsoft Blog (January 2025) Global Data Center Demand: RBC Datacenter Download (June 2024) Page 80 – A Record of Achievement in Net Lease 1. Since Blue Owl Real Estate’s inception through November 2024. Preferred Return represents the cumulative amount distributed to LP’s based on the LP’s unreturned capital contribution at a rate of % per annum for Blue Owl Real Estate’s closed end Funds I-VI and a rate of 7% per annum for ONLP 2. Since Blue Owl Real Estate’s inception through 11/15/2024 for our closed-end Funds I-VI and ONLP. 3. Net IRR as of 9/30/24. Net IRR represents a weighted average of fund-level net IRRs for Funds I, II and III based on each respective fund’s total invested capital. Funds IV, V, VI, ONLP, and ORENT have not been included as they are not fully realized. Net fund-level cash flows were constructed by isolating a single investor’s contributions and distributions and applying the highest management and performance fees throughout. Sources: Institutional capital raiser: PERE Fundraising Report FY 2024 Net private wealth capital: Stanger Market Pulse December 2024 Page 82 – Blue Owl Is the Leader In Net Lease Real Estate 1. Oak Street, predecessor to Blue Owl Net Lease, was a pioneer of net lease in the private fund market 15 years ago. Sources: Dedicated net lease capital raised: PERE “Oak Street on track to raise its first mega fund” Private wealth fund raiser: Stanger Market Pulse - Public DPP, Non-Listed REIT & Non-Listed BDC Sales (November 2024) Investment-grade asset-backed securitization: S&P and Bloomberg Largest net lease data center deal: Crusoe Newsroom “Crusoe, Blue Owl Capital And Primary Digital Infrastructure Enter 3.4 Billion Joint Venture for AI Data Center Development” – Published October 15, 2024 Page 85 - The Addressable Market in Triple Net Lease Vastly Overshadows Available Capital Sources: North America Investment Grade Universe: Investable universe based on combined book value of net property, plant and equipment for all investment-grade rated entities in North America with an investment grade credit rating from Standard & Poor’s. Source: Standard & Poor’s Capital IQ as of April 8, 2024. EEA Investment Grade Universe: Investable universe based on combined book value of net property, plant and equipment for all investment-grade companies with publicly available financial information in Europe. Converted to USD at a rate of EUR 1 = USD 1.04. Source: Standard & Poor’s Capital IQ as of April 8, 2024. Endnotes
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172 Page 86 – Investing Behind Significant Secular Themes Requiring Scaled Capital Sources: Digital Infrastructure: McKinsey “AI power: Expanding data center capacity to meet growing demand” Manufacturing spend: FRED Economic Data, U.S. Census Bureau as of October 31, 2023 Semiconductor market: Precedence Statistics as of June 2023 Dedicated net lease capital raised: PERE “Oak Street on track to raise its first mega fund” Page 88 - Introducing Prima: A Scaled Player in Public and Private Real Estate Credit Source: Bank of America Research, Intex Page 90 - A Massive Market with Traditional Financing Sources Pulling Back Source: Mortgage Bankers Association. Page 91 – The Pending Maturity Wall in CRE Presents Opportunity Sources: U.S. Commercial Real Estate Value Decline: Green Street – Market Monitor – Transactions – December 2024 Commercial Real Estate Debt Maturities: Trepp – CRE Mortgage Maturities & Debt Outstanding – July 2024 Page 94 - A Long Track Record Focused Solely on Data Centers Sources: Cloud Revenue: Structure Research Market Share Series: Hyperscale Cloud (March 2017), Structure Research Market Share Series: Hyperscale Cloud (March 2018), Structure Research Market Share Series: Hyperscale Cloud (June 2024) AI Revenue: RBC Datacenter Download (June 2024) Page 95 - Significant Capital Demand with Systemic Supply Constraints Sources: Lease vs Self-build: RBC Datacenter Download (June 2024) Vacancy Rates: Green Street Data Center Sector Update (November 2024) Rental Rates: Wells Fargo Data Centers Q4 Preview (February 2024) Note: None of the individuals or companies illustrated have endorsed or recommended the services of Blue Owl Digital Infrastructure. Although certain of the above referenced entities may be tenants of assets owned by the funds managed by Blue Owl Digital Infrastructure, the Blue Owl Digital Infrastructure Funds do not expect to invest in any of the referenced companies nor can there be any assurance that Blue Owl Digital Infrastructure Funds will continue to develop data center assets on or behalf of or provide corporate related services to any of the referenced companies. Endnotes
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173 Page 100 - Real Assets Has Been Our Fastest Growing Platform… And We Think That Can Continue 1. “Investor Day 2022” data are as of 3/31/22. Page 105 - Our Hybrid M&A Strategy Is a Complement to Robust Organic Growth 1. Market Cap as of 12/31/24 using stock price of $23 is approximately $35B. Page 109 - We Expect to Grow Our Insurance Business Substantially Sources: US life insurance AUM: Aon Review of Alternative Asset Managers’ Involvement with Life & Annuity Insurers, 2022 Global life and annuity source: IAIS Global Insurance Market Report - December 2023 Page 115 - The Growth of Blue Owl’s Institutional Business 1. Excludes capital acquired with the Kuvare Asset Management acquisition, as well as subsequent flows into legacy Kuvare Asset Management products. Page 116 - Institutional Client Demand for Alternatives Is Increasing... Sources: Growth in Institutional Assets: PwC Asset and wealth management revolution 2024 and 2023 Allocations: Preqin Institutional Allocation Study 2024 Page 117 – Why Institutions Partner with Us 1. Excludes wealth and CLOs. 2. Represents capital acquired with the Kuvare Asset Management acquisition, as well as subsequent flows into legacy Kuvare Asset Management products. 3. Other includes the following investor types: Asset Managers, Sovereign Nations, Corporate Treasury, and Fund of Funds. Page 118 – The Opportunity to Deepen and Grow Engagement is Significant 1. Growth of Clients and Commitments based on investor equity commitments, excluding wealth and CLOs. Excludes capital acquired with the Kuvare Asset Management acquisition, as well as subsequent flows into legacy Kuvare Asset Management products. 2. Opportunity for Cross Selling based on investor count. Excludes capital acquired with the Kuvare Asset Management acquisition, as well as subsequent flows into legacy Kuvare Asset Management products. 3. “Investor Day 2022” data are as of 3/31/22. Page 119 - Creating Value with Strategic Acquisitions… 1. Based on equity commitments. Endnotes
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174 Page 123 - The Private Wealth Opportunity Set Is Enormous and Still in the Early Innings Sources: Assets: PwC Asset and wealth management revolution 2024. Unleashing the transformative power of disruptive technology. November 2024 Institutional Allocation: Preqin Institutional Allocation Study, March 2024. For Private Wealth Allocations: Bain Global Private Equity Report 2023 Page 124 - Market Share is Consolidating Amongst a Small Number of Managers Creating Significant Barriers to Entry Source: Stanger Market Pulse Page 125 - A Market Leader in Fundraising and Favorability Sources: Brand Survey: Blue Owl Brand Pulse Survey Capital Raise: Stanger Market Pulse Peer group: Apollo, Ares, Blackstone, Brookfield, Carlyle, Golub, KKR, Starwood, and TPG. Page 129 – Underpinned by a Strong Track Record of Innovation Sources: REIT Fundraising: Stanger Market Pulse Award: IPI Barrons Industry Award 2024 Page 130 – That has Led to an Industry-Leading Wealth Platform at One of the Largest and Fastest Growing Alternative Asset Managers Source: Stanger Market Pulse Page 132 - There Is Significant Growth Potential Across Our Largest Markets Sources: US Wealth Market: Goldman Sachs Equity Research “2025 Capital Markets Outlook: Reposition to balance cyclical and structural growth versus expanded valuations.” January 2025. Household Financial Assets: Bank of Japan, September 2024. European Fund and Asset Management Association, December 2023. Australian Bureau of Statistics, September 2024. FRED, September 2024. Page 134 - Significant Barriers to Entry Are a Catalyst for M&A Source: Private Equity International. Private Funds Leaders Survey: Dedicated wealth teams to become the norm. August 2023. Endnotes
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175 Page 135 - New Frontiers Will Continue to Drive Growth Sources: Retirement TAM is representing by retirement assets excluding defined benefit plans. ICI Quarterly Retirement Market Data 3Q24. Model Portfolios: TAM is the estimated amount of model portfolios AUM. Cerulli Associates Data. March 2024. Tax-Advantaged Solutions: TAM is represented by U.S. household financial assets invested in real estate and estimated global private placement life insurance market size. Federal Reserve Bank of St. Louis, September 2024. MAIA Research. Strategic Partnerships: TAM is represented by U.S. household financial assets invested in corporate equities and mutual fund shares. Federal Reserve Bank of St. Louis, September 2024. Page 138 – Shareholder Value Creation Since Our Last Investor Day 1. At Listing metrics as of June 30, 2021. Page 141 - Our FRE Management Fees Have Grown for 15 Consecutive Quarters 1. Direct Lending spread data represents Unitranche middle market spreads from LSEG LPC Source: Middle Market Connect, The Middle Market Opportunity, October 2024 Page 142 - Part I Fees Have Grown Meaningfully Through Different Market Cycles 1. Direct Lending spread data represents Unitranche middle market spreads from LSEG LPC Source: Middle Market Connect, The Middle Market Opportunity, October 2024 Page 143 – Our FRE Management Fee Growth Is Significantly Outpacing Our Peers 1. 2024E for peers is from Visible Alpha as of 1/22/25. Peer group includes Apollo Global Management, Inc “APO”, Ares Management Corporation “ARES”, Blackstone Inc. “BX”, The Carlyle Group Inc. “CG”, and KKR & Co. Inc. “KKR”. Page 145 - So Our Earnings Are Not Subject to Much of the Market Volatility That Our Peers Are 1. 2024E for peers is from Visible Alpha as of 1/22/25. Peer group includes Apollo Global Management, Inc “APO”, Ares Management Corporation “ARES”, Blackstone Inc. “BX”, The Carlyle Group Inc. “CG”, and KKR & Co. Inc. “KKR”. Source: Global M&A Volumes represents total transaction value from S&P Global Market Intelligence (Global M&A By the Numbers: Q3 2024) Endnotes
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176 Page 146 - Our Leading Private Wealth Franchise Is Well Positioned for Future Growth 1. Includes all fundraise from OCIC, OTIC & ORENT/OREX. Page 150 - Our Strategies That Existed As of Our Last Investor Day 1. Length of track record includes length of time before Blue Owl acquired business where applicable. 2. GP Strategic Capital is inclusive of GP Minority Stakes, GP Debt Financing, and Professional Sports Minority Stakes. Page 151 - Our Strategies Today 1. Length of track record includes length of time before Blue Owl acquired business where applicable. 2. GP Strategic Capital is inclusive of GP Minority Stakes, GP Debt Financing, and Professional Sports Minority Stakes. 3. IPI acquisition closed on 1/3/25. Page 152 - We Have a Playbook and Track Record of Growing Our Acquired Businesses 1. Oak Street At Signing metrics as of 9/30/21. Page 157 - Our Velocity of Capital Is Different Than Our Peers 1. FRE multiple of peers represents the average of the individual implied FRE retained per dollar raised for peers. Peer FPAUM retained ratio, FRE Margin, and Avg. Fee Rate based on 3Q24 LTM. Peer group includes Apollo Global Management, Inc “APO”, Ares Management Corporation “ARES”, Blackstone Inc. “BX”, The Carlyle Group Inc. “CG”, and KKR & Co. Inc. “KKR”. Page 159 – Shareholder Value Creation Since Our Last Investor Day 1. Represents close price on 5/19/22. Endnotes
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177 Non-GAAP Reconciliations
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178 Non-GAAP Measures Fee-Related Earnings, or FRE, and Related Components Fee-Related Earnings is a supplemental non-GAAP measure of our core operating performance used to make operating decisions and assess our core operating results, focusing on whether our core revenue streams, primarily consisting of management fees, are sufficient to cover our core operating expenses. FRE performance revenues refers to the GAAP performance revenues that are measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments. Management also reviews the components that comprise Fee-Related Earnings (i.e., FRE revenues and FRE expenses) on the same basis used to calculate Fee-Related Earnings, and such components are also non-GAAP measures and have been identified with the prefix “FRE” throughout this presentation. Fee-Related Earnings exclude various items that are required for the presentation of our results under GAAP, including the following: noncontrolling interests in the Blue Owl Operating Partnerships; equity-based compensation expense; compensation expenses related to capital contributions in certain subsidiary holding companies that are in-turn paid as compensation to certain employees, as such contributions are not included in Fee-Related Earnings or Distributable Earnings; amortization of acquisition-related earnouts; amortization of intangible assets; “Transaction Expenses” as defined below; expense support payments and subsequent reimbursements; net gains (losses) on investments; net losses on retirement of debt; interest and dividend income; interest expense; changes in TRA, warrant and earnout liabilities; and taxes. Transaction Expenses are expenses incurred in connection with the Business Combination and other acquisitions and strategic transactions, including subsequent adjustments related to such transactions, that were not eligible to be netted against consideration or recognized as acquired assets and assumed liabilities in the relevant transactions. FRE revenues and FRE expenses also exclude DE performance revenues and related compensation expense, as well as revenues and expenses related to amounts reimbursed by our products, including administrative fees and dealer manager reallowed commissions, that have no impact to our bottom line operating results, and therefore FRE revenues and FRE expenses do not represent our total revenues or total expenses in any given period. DE performance revenues refers to GAAP performance revenues that are not FRE performance revenues. Distributable Earnings or DE Distributable Earnings is a supplemental non-GAAP measure of operating performance that equals Fee-Related Earnings plus or minus, as relevant, DE performance revenues and related compensation, interest and dividend income, interest expense, as well as amounts payable for taxes and payments made pursuant to the TRA. Amounts payable for taxes presents the current income taxes payable, excluding the impact of tax contingency-related accrued expenses or benefits, as such amounts are included when paid or received, related to the respective period’s earnings, assuming that all Distributable Earnings were allocated to Blue Owl Capital Inc., which would occur following the exchange of all Blue Owl Operating Group Units for Class A Shares. Current income taxes payable and payments made pursuant to the TRA reflect the benefit of tax deductions that are excluded when calculating Distributable Earnings (e.g., equity-based compensation expenses, Transaction Expenses, tax goodwill, etc.). If these tax deductions were to be excluded from amounts payable for taxes, Distributable Earnings would be lower and our effective tax rate would appear to be higher, even though a lower amount of income taxes would have been paid or payable for a period’s earnings. We make these adjustments when calculating Distributable Earnings to more accurately reflect the net realized earnings that are expected to be or become available for distribution or reinvestment into our business. Management believes that Distributable Earnings can be useful as a supplemental performance measure to our GAAP results assessing the amount of earnings available for distribution. Adjusted Fee-Related Earnings and Adjusted Distributable Earnings Adjusted Fee-Related Earnings and Adjusted Distributable Earnings are supplemental non-GAAP measures of operating performance that are determined on the same basis as Fee-Related Earnings and Distributable Earnings, respectively, assuming that the Dyal Capital acquisition had closed on January 1, 2021. Adjusted Revenues were based on the actual revenues generated by the Dyal Capital funds for the period, and Adjusted Expenses were based on the incremental expense levels experienced in the stub period following the acquisition closing date. These expense levels were based on current results and may not be indicative of future results. GAAP Margin Calculated as income before income taxes, divided by total revenues. FRE Margin FRE Margin is a supplemental non-GAAP measure that equals Fee-Related Earnings before net (income) loss allocated to noncontrolling interests, divided by FRE revenues. Management believes that FRE Margin can be useful as a supplemental performance measure used to make operating decisions and assess our core operating results.
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179 Non-GAAP Reconciliations (dollars in thousands) 4Q'24 3Q'24 4Q'23 4Q'22 Adj. 1Q'22 Adj. 4Q'21 GAAP Net Income (Loss) Attributable to Class A Shares 109,584$ 106,899$ 54,343$ (9,289)$ (427,400)$ (376,171)$ Net income (loss) attributable to noncontrolling interests 310,862 323,684 166,433 (30,946) (1,437,116) (1,426,095) Income tax expense (benefit) 48,782 48,878 25,608 (9,380) (70,437) (65,211) GAAP Income (Loss) Before Income Taxes 469,228 479,461 246,384 (49,615) (1,934,953) (1,867,477) Incremental earnings assuming the Business Combination closed on 1/1/21 - - - - 31,937 95,717 Strategic Revenue-Share Purchase consideration amortization 43,553 43,096 40,858 37,383 18,814 9,892 DE performance revenues (409) (1,839) (2,345) (12,221) (5,906) (5,906) DE performance revenues compensation 143 644 821 4,282 2,067 2,067 Equity-based compensation - other 215,464 199,759 158,573 99,520 24,417 6,891 Equity-based compensation - acquisition related 27,972 28,118 84,543 248,455 1,244,824 1,184,170 Equity-based compensation - Business Combination grants 69,173 68,899 69,448 72,857 32,696 14,275 Acquisition-related cash earnout amortization - 6,568 25,731 66,110 16,082 - Capital-related compensation 3,858 2,804 5,930 4,327 2,246 1,416 Amortization of intangible assets 258,256 238,412 300,341 256,909 175,415 113,889 Transaction Expenses 74,476 64,512 13,308 9,089 57,753 56,218 Expense support (9,805) (11,827) (6,617) 8,194 7,212 - Net (gains) losses on investments (1,713) (11,333) (4,203) 132 3,521 3,526 Net losses on early retirement of debt - - - - 17,636 17,636 Change in TRA liability (7,080) 4,953 1,656 11,435 23,500 13,848 Change in warrant liability 38,300 28,450 14,050 (34,634) 25,912 43,670 Change in earnout liability 28,300 12,208 6,409 14,488 834,751 834,255 Interest and dividend income (42,172) (36,850) (22,176) (4,357) (387) (387) Interest expense 121,894 107,789 75,696 60,068 34,638 27,662 Fee-Related Earnings Before Noncontrolling Interests 1,289,438 1,223,824 1,008,407 792,422 612,175 551,362 Net (income) loss allocated to noncontrolling interests included in Fee-Related Earnings (36,072) (31,397) (10,690) 7,709 (3,519) (3,959) Fee-Related Earnings 1,253,366 1,192,427 997,717 800,131 608,656 547,403 DE performance revenues 409 1,839 2,345 12,221 5,906 5,906 DE performance revenues compensation (143) (644) (821) (4,282) (2,067) (2,067) Interest and dividend income 42,172 36,850 22,176 4,357 387 387 Interest expense (121,894) (107,789) (75,696) (60,068) (34,638) (27,662) Taxes and TRA payments (44,662) (46,327) (17,883) (9,557) (12,226) (926) Distributable Earnings 1,129,248$ 1,076,356$ 927,838$ 742,802$ 566,018$ 523,041$ Last Twelve Months
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180 Non-GAAP Reconciliations (cont’d) (dollars in thousands) 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 GAAP Net Income Attributable to Class A Shares 20,743$ 29,805$ 33,945$ 25,091$ 18,058$ 15,109$ 12,859$ 8,317$ Net income attributable to noncontrolling interests 50,312 69,519 104,109 86,922 63,134 48,402 21,180 33,717 Income tax expense 3,018 12,796 18,197 14,771 3,114 10,652 5,402 6,440 GAAP Income Before Income Taxes 74,073 112,120 156,251 126,784 84,306 74,163 39,441 48,474 Strategic Revenue-Share Purchase consideration amortization 11,117 11,116 10,660 10,660 10,660 10,659 9,770 9,769 DE performance revenues (409) - - - (1,839) - - (506) DE performance revenues compensation 143 - - - 644 - - 177 Equity-based compensation - other 70,261 58,898 40,155 46,150 54,556 36,185 32,204 35,628 Equity-based compensation - acquisition related 21,629 2,077 2,163 2,103 21,775 21,192 20,897 20,679 Equity-based compensation - Business Combination grants 17,432 16,632 17,649 17,460 17,158 17,597 17,725 16,968 Acquisition-related cash earnout amortization - - - - 6,568 6,567 6,498 6,098 Capital-related compensation 1,532 732 681 913 478 1,894 1,860 1,698 Amortization of intangible assets 76,653 68,674 56,734 56,195 56,809 56,724 115,917 70,891 Transaction Expenses 11,455 43,186 11,613 8,222 1,491 8,000 3,701 116 Expense support 1,930 (3,860) (6,077) (1,798) (92) (1,352) (3,085) (2,088) Net (gains) losses on investments 7,832 (3,748) (2,624) (3,173) (1,788) 1,227 (3,030) (612) Change in TRA liability (2,190) (6,849) 2,978 (1,019) 9,843 (35) (10,116) 1,964 Change in warrant liability 20,350 6,300 (3,050) 14,700 10,500 2,050 (450) 1,950 Change in earnout liability 17,589 10,056 70 585 1,497 2,074 1,844 994 Interest and dividend income (11,417) (12,213) (13,787) (4,755) (6,095) (5,686) (5,606) (4,789) Interest expense 32,593 34,102 32,715 22,484 18,488 19,672 19,174 18,362 Fee-Related Earnings Before Noncontrolling Interests 350,573 337,223 306,131 295,511 284,959 250,931 246,744 225,773 Net (income) loss allocated to noncontrolling interests included in Fee-Related Earnings (10,242) (10,361) (9,656) (5,813) (5,567) (3,102) (2,147) 126 Fee-Related Earnings 340,331 326,862 296,475 289,698 279,392 247,829 244,597 225,899 DE performance revenues 409 - - - 1,839 - - 506 DE performance revenues compensation (143) - - - (644) - - (177) Interest and dividend income 11,417 12,213 13,787 4,755 6,095 5,686 5,606 4,789 Interest expense (32,593) (34,102) (32,715) (22,484) (18,488) (19,672) (19,174) (18,362) Taxes and TRA payments (4,244) (3,966) (4,582) (31,870) (5,909) (4,320) (4,013) (3,641) Distributable Earnings 315,177$ 301,007$ 272,965$ 240,099$ 262,285$ 229,523$ 227,016$ 209,014$ Quarter Ended
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181 Non-GAAP Reconciliations (cont’d) (dollars in thousands) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 Adj. 2Q'21 GAAP Net Income (Loss) Attributable to Class A Shares 1,592$ 2,060$ (1,126)$ (11,815)$ 82$ (53,323)$ (362,344)$ Net income (loss) attributable to noncontrolling interests 163 (12,068) (7,940) (11,101) (13,495) (187,524) (1,224,996) Income tax expense (benefit) (5,888) (4,085) 5,631 (5,038) (21,809) (14,391) (29,199) GAAP Loss Before Income Taxes (4,133) (14,093) (3,435) (27,954) (35,222) (255,238) (1,616,539) Incremental earnings assuming the Business Combination closed on 1/1/21 - - - - - - 31,937 Strategic Revenue-Share Purchase consideration amortization 9,769 9,770 8,922 8,922 8,922 970 - DE performance revenues (12,221) - - - (5,906) - - DE performance revenues compensation 4,282 - - - 2,067 - - Equity-based compensation - other 30,320 27,381 24,293 17,526 6,891 - - Equity-based compensation - acquisition related 62,831 62,831 62,139 60,654 9,851 15,722 1,158,597 Equity-based compensation - Business Combination grants 18,319 17,864 18,253 18,421 14,275 - - Acquisition-related cash earnout amortization 17,402 16,515 16,111 16,082 - - - Capital-related compensation 1,675 972 850 830 1,416 - - Amortization of intangible assets 64,663 65,835 64,885 61,526 46,362 46,191 21,336 Transaction Expenses 951 976 4,737 2,425 16,007 4,108 35,213 Expense support (5,464) 785 5,661 7,212 - - - Net (gains) losses on investments (578) 592 123 (5) 3,381 145 - Net losses on early retirement of debt - - - - 1,491 - 16,145 Change in TRA liability 6,752 (3,599) (1,370) 9,652 7,969 4,733 1,146 Change in warrant liability 1,100 2,747 (20,723) (17,758) 908 27,462 15,300 Change in earnout liability 12,024 1,760 208 496 78,163 293,122 462,970 Interest and dividend income (3,624) (733) - - (331) (56) - Interest expense 16,423 15,760 15,051 12,834 9,819 6,168 5,817 Fee-Related Earnings Before Noncontrolling Interests 220,491 205,363 195,705 170,863 166,063 143,327 131,922 Net (income) loss allocated to noncontrolling interests included in Fee-Related Earnings 1,379 4,451 1,359 520 (718) (1,469) (1,852) Fee-Related Earnings 221,870 209,814 197,064 171,383 165,345 141,858 130,070 DE performance revenues 12,221 - - - 5,906 - - DE performance revenues compensation (4,282) - - - (2,067) - - Interest and dividend income 3,624 733 - - 331 56 - Interest expense (16,423) (15,766) (15,045) (12,834) (9,819) (6,168) (5,817) Taxes and TRA payments (2,009) (3,108) (1,617) (2,823) (514) 7,004 (15,893) Distributable Earnings 215,001$ 191,673$ 180,402$ 155,726$ 159,182$ 142,750$ 108,360$ Quarter Ended
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182 Non-GAAP Reconciliations (cont’d) (dollars in thousands) 4Q'24 Adj. 2Q'21 4Q'24 4Q'23 4Q'22 Adj. 4Q'21 GAAP Revenues 631,361$ 179,260$ 2,295,427$ 1,731,608$ 1,369,722$ 823,878$ Incremental revenues assuming the Business Combination closed on 1/1/21 - 41,381 - - - 123,374 Strategic Revenue-Share Purchase consideration amortization 11,117 - 43,553 40,858 37,383 9,892 DE performance revenues (409) - (409) (2,345) (12,221) (5,906) Reimbursed expenses (46,387) (10,833) (168,008) (109,662) (73,144) (51,596) FRE Revenues 595,682$ 209,808$ 2,170,563$ 1,660,459$ 1,321,740$ 899,642$ (dollars in thousands) 4Q'24 4Q'23 4Q'22 Adj. 4Q'21 GAAP Management Fees 1,994,064$ 1,527,241$ 1,211,606$ 667,935$ Incremental management fees assuming the Business Combination closed on 1/1/21 - - - 113,740 Strategic Revenue-Share Purchase consideration amortization 43,553 40,858 37,383 9,892 FRE Management Fees 2,037,617$ 1,568,099$ 1,248,989$ 791,567$ Income Before Income Taxes 469,228$ GAAP Revenues 2,295,427$ GAAP Margin 20% Fee-Related Earnings Before Noncontrolling Interests 1,289,438$ FRE Revenues 2,170,563$ FRE Margin 59% Quarter Ended Last Twelve Months Last Twelve Months
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183 Non-GAAP Reconciliations (cont’d) (dollars in thousands) 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 GAAP Management Fees 557,103$ 523,309$ 465,754$ 447,898$ 410,578$ 386,009$ 371,829$ 358,825$ Incremental management fees assuming the Business Combination closed on 1/1/21 - - - - - - - - Strategic Revenue-Share Purchase consideration amortization 11,117 11,116 10,660 10,660 10,660 10,659 9,770 9,769 FRE Management Fees 568,220$ 534,425$ 476,414$ 458,558$ 421,238$ 396,668$ 381,599$ 368,594$ (dollars in thousands) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 Adj. 2Q'21 Adj. 1Q'21 GAAP Management Fees 341,272$ 338,377$ 284,325$ 247,632$ 227,337$ 203,750$ 142,135$ 94,713$ Incremental management fees assuming the Business Combination closed on 1/1/21 - - - - - - 38,267 75,473 Strategic Revenue-Share Purchase consideration amortization 9,769 9,770 8,922 8,922 8,922 970 - - FRE Management Fees 351,041$ 348,147$ 293,247$ 256,554$ 236,259$ 204,720$ 180,402$ 170,186$ Quarter Ended Quarter Ended
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184 Defined Terms
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185 Annualized Loss Ratio Refers to the average annual loss rate based on total annual net realized losses divided by the average aggregate quarterly cost of investments. The loss rate is based on the average loss rates in each year since inception. 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 Credit and Real Assets products; and (v) par value of collateral for collateralized loan obligations (“CLOs”) and other securitizations. Atalaya Refers to the business of alternative credit manager Atalaya Capital Management LP, which was acquired on September 30, 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 Technology Finance Corp. (“OTF”), Blue Owl Technology Finance Corp. II (“OTF II”), Blue Owl Credit Income Corp. (“OCIC”), Blue Owl Technology Income Corp. (“OTIC”) and, until January 13, 2025, Blue Owl Capital Corporation III ("OBDE"). Blue Owl, the Company, the firm, we, us, and our Refers to Blue Owl Capital Inc. and its consolidated subsidiaries. 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 Capital Carry LP and Blue Owl Capital Holdings LP, collectively. Business Combination Refers to the transactions contemplated by the business combination agreement dated as of December 23, 2020 (as the same has been or may be amended, modified, supplemented or waived from time to time), by and among Altimar Acquisition Corporation, Owl Rock Capital Group LLC, Owl Rock Capital Feeder LLC, Owl Rock Capital Partners LP and Neuberger Berman Group LLC, which transactions were completed on May 19, 2021. CAGR Refers to compounded annual growth rate. Class A Shares Refers to the Class A common stock, par value $0.0001 per share, of Blue Owl. Clients Refers to investors in Blue Owl products. Credit Refers to our Credit platform that includes our direct lending strategy, which offers private credit solutions to primarily upper middle market companies through differentiated access points; alternative credit, which targets credit-oriented investments in markets underserved by traditional lenders or the broader capital markets, with deep expertise investing across specialty finance, private corporate credit and equipment leasing; investment grade credit, which focuses on generating capital-efficient investment income through asset-backed finance, private corporate credit, and structured products; and liquid credit, which focuses on the management of CLOs. Our Credit platform also includes our other adjacent investment strategies (e.g. strategic equity and healthcare opportunities). Dyal Capital Refers to the Dyal Capital Partners business, which was acquired from Neuberger Berman Group LLC in connection with the Business Combination. Fee-Paying AUM or FPAUM Refers to the AUM on which management fees or FRE performance revenues are earned. For our BDCs, FPAUM is generally equal to total assets (including assets acquired with debt but excluding cash). For our other Credit products, excluding CLOs, FPAUM is generally equal to NAV, investment cost, market value or statutory book value. FPAUM also includes uncalled committed capital for products where we earn management fees on such uncalled committed capital. For CLOs and other securitizations, FPAUM is generally equal to the par value of collateral. For our GP Strategic Capital products, FPAUM for the GP minority stakes strategy is generally equal to capital commitments during the investment period and the cost of unrealized investments after the investment period. For GP Strategic Capital’s other strategies, FPAUM is generally equal to investment cost. For Real Assets, FPAUM is generally equal to a combination of capital commitments and cost of unrealized investments during the investment period and the cost of unrealized investments after the investment period; however, for certain Real Assets products FPAUM is based on NAV, market value or statutory book value. Defined Terms
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186 Defined Terms (cont’d) GAAP Refers to U.S. generally accepted accounting principles. GFC Refers to the global financial crisis. 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. Gross IRR Refers to an annualized since inception gross internal rate of return of cash flows to and from the product and the product’s residual value at the end of the measurement period. Gross IRRs are calculated before giving effect to management fees (including Part I Fees), as applicable. For GP Strategic Capital, performance metrics are presented on a quarter lag. Gross Return Refers to a return that is equal to the percentage change in the value of a product's portfolio, adjusted for all contributions and withdrawals (cash flows) before the effects of management fees, incentive fees and carried interest allocated to the general partner of special limited partners, or other fees and expenses. IPI Refers to the business of digital infrastructure fund manager IPI Partners, LLC, which was acquired on January 3, 2025. Net IRR Refers to an annualized since inception net internal rate of return of cash flows to and from the product and the product’s residual value at the end of the measurement period. Net IRRs are calculated after giving effect to fees, as applicable, and all other expenses. An individual investor’s IRR may be different to the reported IRR based on the timing of capital transactions. For GP Strategic Capital, performance metrics are presented on a quarter lag. Net Return Refers to a return that is equal to the percentage change in the value of a product's portfolio, adjusted for all contributions and withdrawals (cash flows) after the effects of management fees, incentive fees and carried interest allocated to the general partner of special limited partners, or other fees and expenses. NYSE Refers to the New York Stock Exchange. Oak Street Refers to the investment advisory business of Oak Street Real Estate Capital, LLC that was acquired on December 29, 2021. our products Refers to the products that we manage, including our BDCs, private funds, insurance solutions offerings, CLOs and other securitizations, managed accounts and real estate investment trusts (“REIT”). 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. 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 may have periodic tender offers or redemptions. Permanent Capital includes certain products that are subject to management fee step downs or roll-offs or both over time. Prima Refers to Prima Capital Advisors Holdings LLC, a real estate lender focused primarily on investing in commercial mortgage-backed securities, which was acquired on June 6, 2024. Real Assets Refers, unless context indicates otherwise, to our Real Assets platform (f/k/a Real Estate) that primarily focuses on acquiring triple net lease real estate occupied by investment grade and creditworthy tenants and real estate debt finance through two investment strategies: net lease and real estate credit. Tax Receivable Agreement or TRA Refers to the Amended and Restated Tax Receivable Agreement, dated as of October 22, 2021, as may be amended from time to time.