Blue Owl’s shares rose 7.7% after earnings, as investors responded to accelerating sequential management-fee growth, record institutional fundraising and continued expansion in AUM. The company also reported 15% year-over-year FRE growth and 14% DE growth, though more than $36 billion of AUM is not yet earning fees and depends on deployment to generate the projected incremental fees.
- Q3 FRE was $0.27 per share and DE was $0.24 per share; the declared dividend was $0.23 per share.
- AUM increased 12% year over year to $330 billion. Blue Owl raised $49 billion over the last 12 months, including a record institutional fundraising quarter, and returned more than $20 billion to investors.
- More than $36 billion of AUM is not yet earning fees—nearly 30% above the year-ago level—and management said deployment could add $400 million in fees.
- Management said shifting rate expectations and higher rates create opportunities in floating-rate lending and credit; it also said rising rates can lift income on existing floating-rate loans and benefit the firm through Part One fees.
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