Mon, May 5, 8:58 PM (10 days ago)
**Blue Owl Capital Inc. (OWL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Net Income:** $7.43 million, down from $25.091 million in Q1 2024. - **Fee-Related Earnings (FRE):** $345.391 million, up from $289.698 million in Q1 2024. - **Distributable Earnings:** $262.516 million, up from $240.099 million in Q1 2024. - **Revenues:** $683.486 million, up from $513.340 million in Q1 2024. - **Management Fees:** $604.186 million, up from $447.898 million in Q1 2024. - **Administrative, Transaction, and Other Fees:** $72.988 million, up from $63.397 million in Q1 2024. - **Performance Revenues:** $6.312 million, up from $2.045 million in Q1 2024. - **Expenses:** $606.192 million, up from $357.734 million in Q1 2024. - **Compensation and Benefits:** $325.940 million, up from $224.791 million in Q1 2024. - **Amortization of Intangible Assets:** $89.473 million, up from $56.195 million in Q1 2024. - **General, Administrative, and Other Expenses:** $190.779 million, up from $76.748 million in Q1 2024. - **Other Loss:** $(36.952) million, down from $(28.822) million in Q1 2024. - **Net Gains (Losses) on Investments:** $(7.700) million, down from $3.173 million in Q1 2024. - **Interest and Dividend Income:** $11.230 million, up from $4.755 million in Q1 2024. - **Interest Expense:** $(38.524) million, up from $(22.484) million in Q1 2024. **Cash Flow:** - **Operating Activities:** $17.586 million, down from $47.247 million in Q1 2024. - **Investing Activities:** $(197.023) million, down from $(15.331) million in Q1 2024. - **Financing Activities:** $124.966 million, up from $19.683 million in Q1 2024. - **Net Change in Cash and Cash Equivalents:** $(54.471) million, down from $51.599 million in Q1 2024. **Assets Under Management (AUM):** - **Total AUM:** $273.3 billion, up from $251.119 billion in Q1 2024. - **Fee-Paying AUM (FPAUM):** $174.6 billion, up from $159.794 billion in Q1 2024. - **AUM Not Yet Paying Fees:** $23.4 billion, providing $289 million of annualized management fees once deployed. **Business Environment:** - **Market Conditions:** Global equity and debt markets experienced volatility due to inflation, economic slowdown, and geopolitical events. - **Business Model:** Management-fee centric model and Permanent Capital contribute to earnings resilience and business growth. **Acquisitions and Strategic Transactions:** - **IPI Acquisition:** Completed on January 3, 2025, enhancing digital infrastructure strategy. - **Internal Reorganization:** Completed on April 1, 2025, restructuring Blue Owl Carry as a wholly-owned subsidiary of Blue Owl Holdings. **Future Operations Impact:** - **Dividends:** Declared a dividend of $0.225 per Class A Share for Q1 2025. - **Share Repurchases:** Authorized up to $150.0 million of Class A Share repurchases under the 2025 Program. - **Debt Obligations:** Total debt of $3.190 billion, with significant available liquidity under the Revolving Credit Facility. **Uncertainties and Risks:** - **Market Volatility:** Potential impact on fundraising, deployment, and investment values. - **Economic Factors:** Inflation, interest rates, and geopolitical events may affect financial markets and business operations. **Future Outlook:** - **Growth Strategy:** Continued focus on acquisitions, strategic investments, and expanding product offerings. - **Liquidity:** Management fees and available credit facilities to support working capital needs and strategic initiatives.