Blue Owl Capital Q3 Earnings Call Highlights

Key Points

• Blue Owl reported strong third-quarter growth: fee-related earnings rose 15% year over year to $0.27 per share, while distributable earnings increased 14% to $0.24. Management expects to continue covering and exceeding its $0.23 quarterly dividend through 2027 and beyond.
• Assets and fundraising continued to expand: assets under management grew 12% to $330 billion, supported by $12.6 billion raised during the quarter and $49 billion over the past year. An additional $36 billion of AUM is not yet fee-paying and could generate roughly $400 million in annual management fees once deployed.
• Management maintained an optimistic outlook: Blue Owl reiterated its 2026 earnings targets and expects higher management-fee growth in 2027, driven by deployments, fundraising, new products and digital infrastructure opportunities. The company is also seeing continued momentum in private wealth, real assets and credit.

Blue Owl Capital NYSE: OWL reported third-quarter 2026 fee-related earnings of $0.27 per share and distributable earnings of $0.24 per share, with fee-related earnings rising 15% and distributable earnings increasing 14% over the prior 12 months.

The company declared a quarterly dividend of $0.23 per share, payable Nov. 23 to shareholders of record on Nov. 10. Chief Financial Officer Alan Kirshenbaum said third-quarter distributable earnings exceeded the dividend and that Blue Owl expects to over-earn the dividend again in the fourth quarter and continue doing so through 2027 and beyond.

Assets, fundraising and embedded fee growth

Co-Chief Executive Officer Marc Lipschultz said Blue Owl’s assets under management grew 12% year over year to $330 billion, supported by fundraising across credit, real assets and GP strategic capital. The firm raised $12.6 billion during the third quarter and $49 billion during the past 12 months.

Blue Owl had a record quarter for institutional fundraising, according to management. Institutional and insurance clients accounted for nearly three-quarters of equity capital raised over the past 12 months. The firm said institutional and insurance investors represented about 70% of equity capital raised during that period, with commitments from those investors up approximately 20% from a year earlier.

Kirshenbaum said $36 billion of AUM was not yet earning fees at quarter-end, up nearly 30% from the prior year. Once deployed, that capital is expected to generate approximately $400 million in annual management fees, representing about 16% embedded growth relative to 2025 management fees.

• Credit represented 45% of total fundraising over the past 12 months.
• Third-quarter credit fundraising totaled $5.6 billion, including $2.3 billion in investment-grade credit, $1.8 billion in direct lending and $1.1 billion in alternative credit.
• The quarter included a $1 billion insurance mandate from Voya.
• Real assets fundraising rose 37% over the past 12 months.

Blue Owl also returned more than $20 billion to investors over the past 12 months, Lipschultz said.

Investment performance and market opportunities

Management said changes in interest-rate expectations and higher yields have created new opportunities across its businesses. Lipschultz said the company’s direct lending portfolio is floating rate, allowing existing loans to reprice as the SOFR curve changes while the firm evaluates new lending opportunities in a higher base-rate and wider-spread environment.

For the 12 months ended in the third quarter, Blue Owl reported gross returns of 9.3% in direct lending and 10.3% in alternative credit. Kirshenbaum said direct lending’s realized loss rate was 12 basis points annually across the total portfolio, while the technology lending book recorded a net gain. Revenue and EBITDA growth among portfolio companies remained in the mid- to high-single-digit range, he said.

In real assets, gross returns over the past 12 months were 12.3% for net lease, 13.4% for digital infrastructure and 6.4% for real estate credit. The company cited more than $140 billion in near-term net lease and digital infrastructure opportunities.

Blue Owl completed $1.4 billion of net lease realizations during the quarter at average cap rates 100 basis points below entry levels, according to Kirshenbaum. The sales generated an average 18% net internal rate of return and 1.5x multiple of invested capital.

Lipschultz also pointed to demand for real estate credit financing, describing the market as a “buyer’s market” as borrowers seek refinancing amid constrained capital availability. He said the company has created dedicated pools of capital for real estate credit opportunities and sees that business as a potential area of long-term growth.

Digital infrastructure strategy

Management spent substantial time discussing digital infrastructure, emphasizing that its strategy centers on buildings leased over long periods to investment-grade tenants rather than a broad bet on artificial intelligence. Lipschultz said the company typically enters leases of 15 to 20 years with annual rent escalators and seeks to limit exposure to short-term reletting, construction timing, site energization and token pricing risks.

Kirshenbaum said Blue Owl has more than 130 data centers either operating or under construction, representing nearly 14 gigawatts of leased and owned capacity, as well as a 21-gigawatt pipeline. The firm expects its next digital infrastructure fund to have an 18- to 24-month fundraising period through roughly mid-2028, with an overall target of $10 billion.

Blue Owl’s retail-focused digital infrastructure vehicle, ODIT, reached approximately $4.6 billion in AUM in less than a year. Management said it is continuing to expand the product’s distribution footprint.

Company executives also distinguished chip and GPU financing from data-center investing. Lipschultz said chip financings involve greater technology risk and shorter durations than long-lived, leased digital infrastructure assets, but said the firm sees opportunities to structure financings for its credit businesses.

Wealth flows, margins and 2027 outlook

In private wealth, third-quarter inflows increased 14% sequentially. Kirshenbaum said redemption requests for Blue Owl Capital Corporation, or OCIC, declined for a second consecutive quarter, with more than 90% of the vehicle’s 90,000 shareholders remaining fully invested. He said redemption requests at ORENT declined for a fifth straight quarter and reached a nine-quarter low.

The company said newer wealth vehicles continued to gain scale. Its alternative credit interval fund, OWLCX, was approaching $3 billion in AUM after launching slightly more than a year ago. Year-to-date inflows from 1031 exchange structures into ORENT tripled from the comparable period a year earlier, management said.

Blue Owl’s fee-related earnings margin was 58.6% for the first nine months of 2026, slightly above its 58.5% outlook. Kirshenbaum said the company expects a modest margin increase in the fourth quarter and modest margin expansion in 2027.

For full-year 2026, management reiterated confidence that it would exceed fee-related earnings of $1.02 per share and distributable earnings of $0.89 per share. The company also reiterated its expectation that management-fee growth in 2027 will be higher than in 2026, supported by fee-paying deployment, fundraising annualization, higher rates, reduced credit management-fee offsets and new product launches.

In closing, Lipschultz characterized Blue Owl’s outlook around “diversification, performance and inflection,” saying the company sees accelerating growth in the second half of 2026 continuing into 2027.

About Blue Owl Capital (NYSE:OWL)

Blue Owl Capital Inc NYSE: OWL is an alternative asset manager that provides private-market investment solutions to institutional investors, financial professionals, and other clients. The company focuses on strategies designed to deliver income, long-term capital appreciation, and customized exposure to private markets.

Blue Owl operates across three primary platforms: Credit, GP Strategic Capital, and Real Estate. Its credit business provides private financing to companies, including direct lending and other asset-backed and specialty finance strategies.

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