Blue Owl Capital (OWL) 4 Nov 222022 Q3 Earnings call transcript

Good morning. My name is Sophiana, and I will be your conference operator for today. At this time, I would like to welcome you to the Blue Owl third quarter 2022 earnings call. Today’s call is being recorded. All lines have been placed on mute to prevent any background noise, and after the speaker’s remarks, there will a question-and-answer session. Instructions]. [Operator you. Thank now Ann would turn conference the And like to Dai. over I to ahead. Please go

Thanks, morning and operator, good to everyone.

XXXX, and future a are Alan per number outside to or Rees, Joining those per including reported offer $X.XX to $X.XX of company's our offer me forward-statements or remind not The fund. any to Fee-Related purchase in a of of results of statements. this refer call the risks an sell remind any Co-Presidents; the filings our assumes to Earnings, note Michael We'd earnings, differ FRE, share, a nothing a Investor available during remarks like as update like to on are which which are may from morning, issued Resources our call, of time Chief and Ostrover, non-GAAP that solicitation and may the DE, our obligation to Chief figures of uncertainties quarter and our involve earnings the for Owl reconciled Commission. share. Executive to Officer; listeners presentation on Capital's Actual of company blueowl.com. the third a website forward-looking with an we interest or Please no constitutes and result This at Officer. Owl in also time today that Blue Marc our performance GAAP those Blue distributable described we'll call Lipschultz to measures section are I'd that factors, of results, everyone financial Kirshenbaum, our control. on results Doug contain Securities or materially made statements, the in Financial Exchange in that number and guarantee from of a and forward-looking

per of dividend of XX. also a November as record $X.XX November to shareholders share of on We payable declared XX

the to posted we'll this be our call website the earnings referring morning. to we presentation, During today, which

I'd like Doug. please hand So, that the to on have turn to along. With call that, over to follow

Thank Blue our we traded I to Owl. two Today, everyone. months, and you, growing of stock how I'm the power contrast another struck few by growth as for of our these reflect that over the Ann, and strong on earnings good firm, quarter disparity between the morning, And trends. reported last really has

have business. XXXX ambitious out it markets that we have at plan. volatility, dislocation the So, be At plan. in market that an time We in moment our May of been pull this time, progress $XX growth focus midst investors I would with interesting shared and the in an in and to past the public entered the a six lens accomplished of as what we really thought on mapped over per substantial And share. outperforming quarters, making and we back

can have X, XX%. Slide by you markets, since to by and by our on entrance public see AUM fee-paying grown As AUM XX%, capital XXX%, permanent the we

acquired a $X.X robust We our and retail distributable by lease business, billion by expand and business, We and continued $XX have XX%, dividend XX%, also already by have distribution. a our fees XX%. net CLO management we estate real to earnings grown billion

of quarter. at the durable looks we end can can't growing the our few like price, our market. management stream up annuity the continue again initial despite highly and Our control from And weeks, XXX% $XX to a that put did is day XX% past earning with earnings share FRE, are like this an with do capital. have trading stream. over we per we driven of the permanent fees strong below We All results quickly coming traded

and XXX in market elevated XXXX despite across achieving markets. raising Day, in towards perspective companies across with we operating GP our The share work Portfolio unique over real made Solutions, $X in of remain progress durable managers this the trends positive Across $X have public XX highlighted fee-paying we cohort, good the we see company over the estate. and dynamics, partner we volatility portfolio which revenue work business, supports XX an therefore, in company's service dividend firm, the a pass in debt. Investor along the milestones its line, AUM inflation and and the most XXXX. our after-tax XXXX, per over ability considering our billion lending in continues with to XXXX, we impacts trend paying each have XXX ability within and billion on DE the direct key positively, to We to of of for bottom companies part,

be model, more tenants. payment our larger, continue managers, their what market investors through Blue to be And we Our real continued and alternative that partner with we rent to challenging meeting resonate fundraise and targets. resilient to ultimately, And who Owl's business that capital-raising out continue across more asset in volatile will we continue stated to XXX% specialized a believe as diversified, tend to managers, see we public estate, successfully, backdrop. expect prove

had billion constituted on private prior of than institutional and we cross And past and billion including Asia, billion tech results. a and prior the LP that existing a XX-month institutional Institutional raised for period, XX% year integrate which and the institutional billion equity over the our to to for distribution $XX US, the lending XX fund GP new and over another non-investors well inflation minority stakes. markets, wealth to protection, often steady The very months, we principal greater expand across last private with third fundraising, strategies, million robust and we markets, footprint, diversified with the quarter over have capital accounts significant capital aggregate, last bringing good a our institutional on challenging roughly diversified $X capital sell desirable times record and XX have What XX-month LPs the we preservation, have from raised focus in quarter of from are half, accounts broaden We have progress capital quarter continued from billion. months. income commitments billion private and our last institutionally, of entire base. raised generation, LPs We and efforts quarter and that nearly demand and had public continue raised with new in were the nearly highly new but over across our and inflows Moving with ongoing and across the globally. is is strategies, our our expanding wealth illustrating distribution from $XX.X our de had $X.X $XX even to $XX introduction Europe, wealth to of growing we the they as management raised fundraising, quarter-over-quarter investors quarter, XX% with raised hear approximately and of quarter, three minimis, another robust platform. inflows remained requests defensive out demonstrated of and the of nature Tender during and across our strong third In environments. third year-over-year. more the channels, their platform. across across we during stand $X.X fundraising XX% fees growth, our We quarter, debt,

our and during the for these strategies. have fundraising reflects the in third track Our ongoing generated record quarter the demand qualities, we for

capital strategies, advantages think this fact, in we we real expertise we our in Looking focus Marc. capital the to the in to to should that, investment raised, well. year, see at the slightest. institutional successive new layers market. business, businesses. Permanent supporting in across our you backdrop Investor dollar We like most wavered will and new channels, with ahead, Blue creating the And we Owl’s direct continue each key right of business. call people, in view, remains changed, Owl's but invest lending resonate market growth. and and may place to highlighted of I'd the competitive that past on assets to wealth turn right estate The to over to to we've continue And cornerstone update our capital raise the over power. and earnings and an today's Marc our that give market recently have strategic add runway messages not the and long-term have Blue favors environment With in deep Day, have meaningful

in liquidity scarce, where to capital Great. The environment favorable unable quarter, Thanks highlighted place through direct investing sponsors unwilling we or a with integral financings. Blue lending commit in role in so quarter, third Owl played been as much, market provider to has remained to last Doug. the lenders an as

standards. our seen values see underwriting loan at to biggest selective firm fundraising to time, spreads as continue and deals some wider to we've for opportunities and the and very most Anaplan, quality even we lower And companies such Avalara. We remain well the today, very lead and seen, in healthy have in to larger happening our trends and Zendesk, compelling some of the higher attractive market position than

opportunities So, typical just let me the ago. from to a evaluating now bit deal the right expound we're seeing to year further, what of even on attractiveness today, about contrast this we're a a

actions, higher On than result year XXX the of to spreads be might wider XXX an as average basis we're XXX a and a points seeing about we basis Fed deal, ago. points base rate, about on

relative could we're an even at better for the today, X% approximately us generally, create to sponsors with that to a to unlevered a combined looking for more in cushion yields to So, seeing as position equity provide for negotiate a similar also stronger greater And unlevered ago. XX year terms, financing creditor. even put XX% deals we're X% investments

investments M&A a to have In continue approximately pipeline, market-leading of broader exceeding XX looked addition, in XXXX deals for full the over and facility good XX decline the despite excess billion, that the in large year. of volumes. in all $X we of size with sizes at continue see to year-to-date, industry finance evaluated we And companies, we very

we driving by management So, portfolio, for of the ongoing gross and had you net see of billion Slide high-quality $X.X quarter, growth on fees. third of XX deployment billion, the of $X originations presentation, the funded earnings can and extension, our

inception, direct approximately last since in realized even realized strong, in the have XX points gross with billion, we across but our very at that originated gains. lending remained the losses annualized our For had or basis XX-month direct been than overstates portfolio we as lending originations remaining greater what $XX.X Credit five losses period. also XX% quality prior months,

realized five points. investors. That we've to gains if fact, of had annualized gains for a realized basis our realized that positive In say, is we net positive net our take losses with is together,

increases cost loan across resiliency great customers, see our in XXs their to across we pass portfolio, and companies Our impact remains value to the low lending weighted the their ability continued tech the to in finance the margins. portfolio to to direct We've along our average the in end XXs limiting low portfolio. of

So, for turning the portfolio months. over performance, lending the X.X% to X.X% the third direct XX and of gross appreciation achieved last quarter,

to turning opportunities high we to lease see of very levels to work. estate, interest real myriad in to put capital and continue our strategy, Now, net

to positive. current inflation, attractive by response very syndicate potential continue think in other as taxes, close of committed Net activity, other about initial Investors in end strategies harder strategy and transaction of investors’ in the one with volume net We're environment desirable Lease an are keeping approach. $XX of as fund, of counterparties, latest Fund we in fifth VI advantages attributes, invested volume. opportunities, our us and product, out of roughly we've see solution through yield the real As $X.X a quarters. or become result, quarter. high net been there. increase, corporate process strategy and of the has tax compares structure letter Trust under primarily launched more pipeline offers borne net close, able and over a large the are the expanding the coming are X% with the lease and and grade lease to the robust access, of got markets borrowing on estate of of to closed contract the very the generally, the near-term owning continue we announced maintenance We targets tenant, our to solely differentiated for we've intent, expenses CapEx, of of attractiveness the September, XX% and costs a Inclusive our to track pipeline and wirehouses, In very inflation-hedging hold quite we characteristics, open-end of grows, our excited persistently over a a plus to estate, to of billion of currently lease strategy a than net this beneficial favorably or believe equity an structure, to investment this access lease real which billion this acquisition

us what inflation heard appreciation for this You've strategy are downside provides markets generation, across for portfolios, speak bears underlying for and months. of say fund our that. for lease Income quarter, returns think seem X.X% I credit real mitigation, profile exactly and gross and investors looking they these, estate risk-adjusted but These third such times, of as multiple it repeating. in our are XX.X% protection, investors be well are We resonating the achieved the portfolio XX the last these the and to we with to. strong net

to me Michael Solutions turn let that, discuss business. with it So, Capital to GP the

Marc. you, Thank

in constructive to see continue Solutions trends our business. Capital GP We

what remain managers the beneficiaries largest, GP stronger. strong with close year-end. consolidation, most come in the We be we managers of before Given agreed alternatives capacity and a a our of quarter, of scale, getting at trend the persistent our our bigger, Dyal fund getting to These on V to the are expected the the held we allow for to diversified universe. final focused within big $XXX had that with of final million end the investors, and towards time,

of The was reach billion, strategic over and investors, billion a of equity intermediary With clients to partners and and strong two has two the the twice the and over $XXX Dyal billion goal. fund a capital We leading for new of months XXX run. base, we the V pace fundraise such Blue changes are three GP less provide a Not thirds demand two Owl approximately differentiated stakes and close a to of next about competitor. equity collaboratively relatively Funds Blue final commitments and across within relationship-building the in the the of over from scale for size intermediary GP products. very Fund well to of sell and fundraise, and institutional what co-investments positioned successful cover half with Total anticipated Fund timing for the remain our that V a across III, next new to firms look and Owl of are with capital into large which capability market optimistic opportunity billion us allocated have is to LPs, $X.X and our from XX This capital additional the LP strategies. a to the on as Dyal the strong, short-term conversations, Capital over investments, Fund net to business. decade. largest with for outperform $X characterized smooth will Fund been at closed continue is for only remain the these continue size of a raised relatively who we've strategy, industry, V expect we IV. equity $XX.X see GP the GP has investment approximately beneficiaries Clearly, environment. very small platforms the Dyal highlights very pace, XX.X% to Performance This of the economic channels, will that cross players principle make of what market-leading fund of of including in From leading culmination the but to to investors, growth our committed existing we with over relationships. other strategy, roughly growing smooth the all of consolidation. bring investments We've fundraise, thirds the and capital who track agreements With position annually Fund to seeing for believe subset relationships. was Solutions last our through million, funds of Dyal XX.X% billion discuss to net We're position. partner invested last Overall, results. we stakes to $X.X were $X investments, deployment to and many in in minority few of our clients, puts billion opportunities this managers GP to capital deployment stakes the a alternatives years continue years, are dependent many long was our each growing large committed of be to whom believe on our financial hold that been that, ahead. of the we diversified relative deploying continue in dynamics. I take advantage will current to initial to a are additional and record in managers, with $X.X IRR to we for billion, highlighting records, despite to to we by deployment large new was see greatest flows firms firm continue $XX confident incremental which dislocation and the V market are of making firm turn The new GP number approximately wealth over conditions. attractiveness things ample from the Alan stake market we minority and V,

quarter. before, we We that a this lot interest expected to To by the alt sound walking And earnings than of the remarks be diversified this feel in next us want like touch we I making flows. and this will suspect other going a so I'll with quarter, from lumpy going Michael. remarks foundation everyone. steady my is permanent that off, presentation, our vol you, through have revenues predictable and of on last our my for cash along. don't available differentiate quarter business look in I'll this peers. have to quarter earnings going call to built so quarter lot management pages our like P&L, fee sound a and and carried through capital free to start I'm from references please Thank We cover different start last items earnings to follow have morning, I few next quarter, quarter, Good industry. a the to to off continue will our and quarter, then releases today. numbers

quarterly our cover Okay, let's results.

last strong or last quarter Our third XX% Broken by last and year and the and a from XX% from million, year million, $XX.X was fees are management XX% of ago. $XX million up estate from real third quarter, GP quarter quarter, XX% are down year up quarter, the ago, Management quarter from a up up up another are and fees business. XX% Capital quarter for growth from from XX% fees are third quarter Solutions from lending last up management $XX.X million quarter. or our strategy, up management ago. the or third direct or a $X.X fees XX%

had last So, last from lower on which strategies. with $XX.X are ago. fee in quarter-over-quarter quarter the line margins million sequentially also a of our call little earnings from brought all we increase FRE double-digit is and guidance quarter-over-quarter, X% Distribution FRE last our provided August. quarter, the driving in in up down costs FRE all in growth quarter, or as the a third we can year management you XX% three see, from up

more I'll with on We that track cover moments. a FRE XXXX, for to in few right continue guidance our but XX% be margin

for last ago, $X.XX dividend ratio XX% of in announced a flat dividend per revenue compensation at share XX%. a to share in a quarter is our year Our quarter, $X.XX last third as $X.XX in increase And and from share we resulting the of per up per a of third year-over-year. roughly quarter, percentage the quarter

is we this quarter. with All last our what line our of noted expectations in call on and earnings

very Now, the I'd again large moment posted in a like to on fundraising our spend third as efforts we quarter. numbers

brings GP raised second billion close an strategy commitments down run these $XXX In we in outcome and raised quarter, distribution Fund billion. the rate $X.X other now as core early we distributed break billion, BDC, momentum to which which our these continues approximately and VI product around Net of strategies quarter, Capital million lending GP now and the has in estate our very the fourth raised billion. included a this in V income for third I'll direct rate Fund non-trad reminder, equity, $X.X about. or raised total and a our which of we That ORCIC, funds the $X.X numbers best-in-class additional Not and an As overall, $X.XX a quarter, we through are have product, $XXX to the $X.X raised million annualized, launched up run million which estate, think retail numbers, Fund have V. in ability In the the across quarter billion good September Solutions $X first direct nicely In for planning us, Fund Capital an products. Dyal revenue fourth about raised would billion Lease is tech fundraising year over to number recently our from includes $XXX into of excited raised real $X.X also through $X.X to biggest in REIT, US, billion million, Trust over our one the I of three strategy, XX. V, billion, then revenue raise we co-invest. initial $XXX build XX. $X That real end $X.X the for the that are to Dyal through a network. Solutions, all leveraging we state all we billion $XXX for for relationship retail for we was pensions raised of new of for our for additional billion million you When for our products. September in $XX.X Dyal billion think lending,

fourth and quarter. heard, second third quarter fundraising we extraordinarily we strong have had levels, have heading good As into you just the and momentum

quarter. and strong as expecting levels we We are the the second quarters, are expecting not quarter in third the fundraising in another fourth saw record but we same

businesses. addition the V, as CLO in year our ago. of $X.X the a deployed. not annual quarter estate expected of billion, was an increase of XX% ago, totaling including As billion primarily and corresponds paying relates compared million AUM of paying estate. direct Capital $XXX permanent metrics, the $XX.X billion. increase $X.X XX, Fund $XXX yet to grew quarter, $X raised from $XX.X AUM direct AUM as $XX.X XX% Permanent well in $XXX.X fees Solutions, XX% AUM ago. billion grew total $XXX.X billion, addition real and and the real management increase XX. September billion Fee-paying and yet XX% $XX.X a billion quarter, quarter lending, driven a from of to reported business to to by billion, increase in AUM billion, and year as an Dyal lending, billion, increase quarter last a in XX.X a in our year on from and direct by from an a we the AUM billion fees year at grew a our ago, third third fees last billion $XX capital This when when capital AUM capital year billion to capital $XXX primarily increase growth $X.X Fund ago, in in and GP fee-paying and capital Slide real approximately from metrics to X% quarter, lending, driven increase last a not billion, was estate V, raise an raise of capital from deployment third and deployment the once it AUM from those XX% raised in Dyal looking

for to gross highlighted deployment continue our and funded funded billion gross have brings Marc $X.X $XX.X lending, with months quarter, This of last with originations XX $XX.X deployment $X direct billion the in net deployment. we strong of to net for billion, of billion. earlier, As the originations

our AUM net based billion about yet this, So, XX last paying it average to would deploy take fully to it relates lending, funded months. as the two the deployment not of pace direct fees in on quarters $X over us

capital in Turning continue position. to we our balance to be sheet, strong a

As X.X% average $X liquidity, XX, cost low you of can over an see we currently with borrowing. maturity, Slide have of billion and on XX-year

to I to So, items few wrap here cover. to are Q&A, want up a last before there getting

approximately distribution I've and incurred in costs, distribution calls, year. $XX been million this last quarter it, had I coming In third session, to $X about V. distribution million of in during earnings this quarter, this G&A anticipated, costs $XX talking to costs. the but of were Q&A The back the previous closing of guidance of the million Most due costs For on was of approximately was much half and this larger on provided second distribution final that million quarter, our approximately quarter. incurred Fund distribution of larger compares Dyal the some $XX of costs we

fees, every raising our As year that would shareholders. capital previous I fees I generate quarter, for have here, we're management dollars Part valuable significant and mentioned on calls, these are permanent incredibly every

down grow of this approximately expect hard costs. second business. the the line of calls, wage the costs, to simply as look excluding distribution continued predict regular timing size item I do these from the Also, I've we year, said slightly in result costs, overall and the distribution quarter our fourth we although G&A, as of sometimes our third growth earnings of is to could a to think but quarter, $XX million incur future continue quarter, this for to of quarters, previous As we on it's

but of more a on we milestones with As to update. all financial it put are specific the them, on, out guidance we've track here's relates

right this $X.X are achieve revenues track billion We year. on to of

We are right on track to achieve a XX% year. FRE margin this

September year-to-date approximately less billion during XXXX raised we and fees fee-paying XXXX. we equity have track raised of debt $XX products raise We represents capital. AUM fee-free to year-to-date year-to-date $XX are Of billion, amount plus debt, This right XX. where raised, $XX for on billion on the earn through

our We of revenues on to XXXX. XXXX $XXX million $X.X billion double in track to are

We are billion on of in track to XXXX. achieve $X distributable earnings

the the track first cash can are for our about for for stock, this dividend I quarter, the the Since we of products, given new of hold target XXXX. a our us quarter. in in DE, a think have feel quarter, dividend a ability second of and posted this set and investing to XXXX, we $X we a quarter, the dividend dividend comfortable for back back $X.XX on GP commits funding beginning our We we per buying distributing achieve to our for has this dividends at a share $X.XX business. fourth year XX% dividend to had growth of When $X.XX for the an $X.XX some post approximately

dividend fix plan for our continue about in our earnings quarter to will XXXX, talk call. which We more to on fourth February I

As ran the I of model. I and them all strong just times on and overall through, all market these we the had headwinds, think quarter-over-quarter, see remain strong quarter, items about continue a business to after growth very quarter strong message dislocation, our we I track milestones for set ourselves. of demonstrate as volatility, about In with

have of share, shares Since the could potential bought $X.X shares, few brings have and to average million or share, That rate back our back an commented the environment few stock $X.XX totals have on third active about million. that $XX past at of we're calls we of the business. shareholders. on have impact Speaking our $XX at been our quarter, buying our we buying year, earnings price for per in, cents average approximately per an of rising buyback value particular $XX.XX shares $X.X months. of the these back million, approximately total for year-to-date incredible I beginning a in million past the over this price

rising lending again rates We direct have included Slide on XX, the business. of here impact our to

our BDCs, XX% I II. management expected, was rates, our we Part our third our quarter. our saw some AUM portion million increased by last a previous the this X$X.X As in or second ORTF In with I from growth increase in from in was it fees BDCs, quarter. fee and and Part of our in fees significant line, A the newer quarter, and of large included higher ORCIC like line from driven interest guidance, from

and rates, fourth could see expecting are year. quarter an see possible fee in in continued into due to increases our We next to rising line increase the additional management

So, a all strong fee-paying as capital, will us very we and February. we results the key will report we DE. summing line and Heading delivering Thank for AUM, on our year fees, quarter-over-quarter metrics, our this excited about wait open again first who are that, with permanent up, operator, questions? wrap into very pleased are to again to FRE, growth to the joined you it our those up, how quarter, With today. management please of full AUM, end, in can't has all public everyone results year company you call in you

Instructions]. [Operator

first Our go Alex will Goldman come Please from with Blostein Sachs. ahead. question

Hey good guys, morning.

I think that was me.

thought Sorry, I it wasn't - clear. particularly

So, thanks the update. for

space. around $XX I retail the you environment fundraising mean, is billion a all the seen that reiterated question target for we've think XXXX. the I volatility guys softer whole have has clearly, the in gotten sort the the flows I and for of across through you've industry, that bit moderation given

fairly uncertain retail help of original XX if sort short a the we going falls from your continue expectations to of to where be come to to fundraising incremental us gaps in the macro can So, backdrop, the get if is fill you of you billion?

Good for Alex. Sure. question, the thanks and morning

out billion. are that We our Day in came So, the reiterating Investor we on $XX yes, May. with

we'll on. quarter. mentioned We're date, fourth $XX into a Alan good we've think expecting billion raised I this to and go further

but no have retail. remember, don't we institutional, sell is, a if positive we just a capitalize opportunity. out our about, and you And had lot these third lot on we opportunity very starting almost We takes spend are raised to of time that quarter. cross great we spend it's in think that breaks billion, when together, know I don't businesses that you're basis, time, seeing a $X put to We what beginning. talking on of XX% institutional, all we're and You XX% I but want LP on. it. is overlap something overstate just we to It time

$X.X of for quarter. In raised wealth, we terms billion the

no we you the think back current a with line superior know we High in we in the downside-protected. to did but have, the be not think out better touched than the second very right, also anywhere what I all or find in had every know in de public far if to you want that's basically think the think peel I consistent quarter. important that's to work. anyone, onion you and up We I with think markets. in this. minimis and the redemptions about on regard and quarter we are But products is just want wealth, income than how I could comment, it's the markets flows we investor they mutual redemptions to I high-net-worth and second what a fund that to virtually third or quarter, point

capital can't I tell significant I a exactly years, that meaningful we quarter-over-quarter, the what position flow tell we're wealth I capture the confident, think we're alternative the over those amount be of in the markets. to five strongly believe will of next into a last you of flows you So, amount going flows. that And to we've a years, see and wealth proved we're but over number can

you. thank Okay,

ISI. from next Evercore Glenn Please go come Our Schorr with ahead. question will

Thanks Hi. very much.

have think I in someone and environment, is would GP for access, there's big ways So, question stakes, no pipeline because opportunity I a like the except to this other you. on

on is using talk So, digits how about it it. on the They’re talk you. company-specific Meaning, you B, but comps. if great, how discount this on go rate. Thank A, just curious to could a There’s you - Dyal market, in higher is could public about Expected a mid market? double pipeline, work marks but I'm there. curious low about the down you - IV inception and, date on Fund it the is quarter-on-quarter. if to I'm

note. get Thanks other many, Michael. hoping many maybe this Was the that's your and Glenn, in we'd Beastie Hey years. The Boys We time. it's pipeline time, next for Guns Roses questions. a the GP one over built saw but reference is reference Solutions in

to the market really are to a aren't doing of XX of to five they quarter-over-quarter. environment worth result deals and most the years’ we're specific of conversations, seven So,

consistent. So, extremely We billion pipeline back a that's number is several year, our and $X you of target per and consistent look have years. deployments about when achieved

So, ours. quarters not great GPs, in it's part we're timing going year, last of with market their really several or the do this and to two on deals

just XXXX, XXXX, GP very a consistent deployment Solutions, expect would pace of I So, and out ‘XX.

I specific. IV like said, not it’s So, Fund is it's environment doing not overly great. - market

you companies well include the there investment, Owl at result Owl do Bridgepoint. specific as public things of fund that IV. as very original to are look this If quarter, as that several Rock Those want held are Fund a in drove Blue the and in performance price stocks,

cash that early probably share IRRs really We when will deployment IRR performance. the being at change, names high to by those the predominantly J look quarter so, curve the and to out outset, fund's a the a look of continues, hesitate reflection they'll as lack of probably a of that have of fund's you it fund a super in at losses IRRs sort And the wouldn't IRR I really a mark-to-market in two moderate. going high flows they actual mean put we're life quarter-on-quarter the early that from driven - price perspective. had going high at was any those to over because

Dyal with to be much time it's out great goes are over consistent report our years modulate and don't that much a be capital flow six, likely the funds. for stakes III, has IRR, is fund progressed just for Fund a We cash in IRR get pretty so investors and cash to of down generator to see hard will five, But flow much we seven given only time. eye-popping, most will how how the budge Fund because mid-XXs fund coming we more of it fund ground. expect a V’s GP like as even that yet We it once you'll

much. very November the avoid you thanks Hope rain. Okay,

of come question Bank from will with Craig America. next Siegenthaler Our

good you're well that doing on you're everyone. Hey, Hope and good track to hear with your targets. morning, - the

Thanks, Craig.

my front And lending within credit ORCIC disclosures, zero on portfolios, from you credit loans? the like is So, restructure kind, anything would across the higher helpful, front? Any quality recession. on your all in last just still Has that you to any question a the there a but of paying quality it seeing needed non-accruals, in been are had delinquencies, non-accruals? Have migration on it early-stage given what we’re of be pickup direct like lending. direct looks that looks number compensation

Of course. Thank you.

thoughts. a few So,

job earning talk performance Let It's purposes we actually for with thankfully bedrock But about each it. important know credit for the us. doesn't remember, good the credit me I fee-based shareholders, really, quarter, really which This really with of matter. headline we is a is do and business. performance Owl a

from our revenues of come All fees.

Craig the this issue managing of continue strong. because With very is see for a ORCC capital. to So, and portfolio. in that for question we've sectors characterize talked actually capital continue and we defensive. shareholders the know returns, as many of we that on continue in very strength it's matters Obviously, long-term XX matters. answer, sectors performance is very here, day, what intensely this raising credit said, At We are say, in see call, tour world, credit revenue great the the people growth our the focused see I is we a over EBITDA from, the what picked. end logical straightforward are quality comes in portfolio, and where performance tumultuous the question quarter-over-quarter on to - good we That about the to this yesterday to do would the

And strong that mathematical continue margin so, environment. there of consistent more to coverage. look, a And very times. interest performance, has than recession, a booming But on to tumultuous we're definitely entering businesses puts see strain we very course, be a somehow on that in certainty the

even what’s three has for and out, and amendments, for the types Whereas early not accelerating like those you below. be that. and companies been two, interest, stable, see BDCs, the very things requests accelerating now, we one, point early incremental will picking there Actually, would or measures our you some know, asked our rate quite in more we requests very have coming. and Right if of in capital. question But You as pace of ratings, remained a we're portfolio that seeing is challenge good sometimes any all the about categorically steady. on of publicly indicators of sometimes requests

ignoring the money horizon not We plan always clouds on them. we're the for So, measure.

We building have in them planned portfolio. for the

loss seeing in realized gains, realized by our been billion actually is, we've positive is cycle the rate as benefits. - a has through as you and portfolio number we for deduce know, result, has of net way can losses across I our virtue before, as actual of been for And loss we're built take and effect since - when commented you since points planned portfolio best platform as rate I a inception. into our $XX five basis in the this the gains done this, So, having - a always loans like durability inception,

So, is, very we're recognize environment strong We the seeing eye. but a we are performance. close continued tumultuous how keeping

That's great to hear. Thanks.

come Katz Our Bill next question will Credit Suisse. from with go Please ahead.

I questions. thank Good a for Maybe you going code. so to the question, taking the try morning. very apologize two-part much violating sneak Okay, and

us help did part talk timing think can V, the is, about First a terms of, the as of question just in just you on Fund Fund you I through deployment. of VI, but give us about know you given can sense - you you what walk

in of you fees? third anything catch-up in operating terms thinking out the is, look second question should billion a leverage? be So, quarter path. we’re was $X into the as we XXXX, And on then how glide And staying about there

and puts the to be the fees VI. get of in the really earmarked we you the annualized when our Fund start year. or XXXX to and On turn look very us so clients end Thanks, to we is deals, look alluded that committed Fund at $X.X as at commitments deployments, VI, at to we pipeline, the expect Bill. talking position on it I to, year where and on of the V Fund and billion next steady billion Michael in road of And here. and a $X out

time as a more fund about think were but puts at successful of this So, opposed $XX point change had to real overall plan. no opt it, to we'll really clients way place squarely as bigger And we get to we that our fees there. management The thought, fee pay We raising some than catch-up XXXX. guidance us million. to give fees start higher that around most were a in forward-looking in in Catch-up we fees.

management we're so, fee amount the overall given of small this increases capital quarter, and catch-up $XX raised. seeing at And fees in being million rates relatively

been and steady So, our that's fees, prefer as ongoing have well. management what clients selecting higher we'd

And Alan, you could have else? something

your Bill, question? the of it was repeat part could you operating I second believe leverage.

question. Thank the for you, second thank you taking and

you the in placement think transitory just, fees, of some of noise through the past the appreciate So, upfront the moving which terms of and I sort fee of that. catch-up nature

running As line, of high we XX% to the incrementally the sort of of to potentially bottom a that XX? or look beyond operating faster the begin obviously franchise, think spur at pretty to looking core about all drops would some with, reinvest leverage you does that growth to even

Bill. Thanks,

already all our Generally place we for businesses, noted, you business. margin to So, land. speaking, and blend of a our across think I that And continue different it’s as as pretty strategies when comfortable I that's high. It’s, Alan. XX% generally should think our you target to industry - FRE

Thank you.

go next question comes Our ahead. JPMorgan. with from Please Worthington Ken

in dividend attention. dividend thinking correctly, the caught when how this the my that I in the you're If you're I that to of fact morning. were the what Good sort continue Has about fix I you called of And set this guess, something to out you that going caught changed level? you XXXX. future? considerations out thinking you just in called terms Hi. that about the think this are

the Appreciate question. Ken. Thanks,

back in We and open looking the at company a So, that base go-forward Investor investors a shareholder to on variable basis. has our dividend to a to May, fix dividend talked that up has think Day who XXXX the expectation potential I to about in philosophy. our aren't otherwise going our

what about things and And our As that the really in I've DE. calls, on to XX% previous is this do with we've fixed look and focused What DE we as want like on. we on had a dividend this variable is been back call a think line targeting for year. the payout year? on that to Obviously, for we been consider mentioned hold We're setting that year? right next so, something going that when we consider is

think stock to for to fixed back buybacks, GP things want to and in that like have like, about We the we how dividend. hold commits, much order set

a we're and the out in come when So, announce where of it. to lot level fix there'll more to be come going we February

That think about - talked change pay embedded to it's think our be directional your we've that, math target. payout of maybe, This is I in to so underpinning dividend. math. any in question the to a I convert not. before into that bulk got we fixed just But out the clear, the the payout said, remains approach, as the the and We’ve do is just XX% idea it speak, Alan earnings?

we So, philosophy changing out? our I are sheet building but the earnings, question, don't referring fixed a balance around it's, are of want step quarter, but pay We out rising is dividend which versus is functions Al the overread variable sheet-light, paying balance model, what instead to. to stock dividend if perhaps every

said. Agreed. Well

your I Okay, perfect. you so I overreading much. want comments, wasn't to very make thank sure

go next ahead. Our with question UBS. comes Please Adam from Beatty

or you. in thank good potential Oh, a I channel. trend to management the And want trend wealth ask about morning.

strategies and and One is products of at we're increasing are the some only distributors there's of or that an FAs, distinct their available larger firms. that i.e., exclusive things the for among of appetite that certain some hearing products,

cons that consider that something approach? Owl of you. more your consider? that just do Thank I pros the or is would Blue And So, to broadly, Is wanted considering thoughts. what get you and

have that capital thanks - remember them. a don't It's of important launch want not period them is your product first their that. to XXX% most we there's from on platform be the clients exclusivity. to raised to have definitely But capital. There's That wirehouse preference the they Well, a away firms, other for a big of one, are seeing question. and what

agree don't I you. a trend we are I do but with So, - that's seeing, that not

differentiated firms think We bring focused are I and can product. they're focused, that on with working

few If right space. called like in people a funds, income that that you have in think and competing about core diversified there's lot have market other our the we what quite we looks lending a now,

where in the tech We only with our lending are a tech market product. we firm have the product

next lease. quarters, net triple on we but real much And a it's our have We that. good on where It's traction fair products other us different introduce I the to think getting over is estate, see channel. estate, meaningful and capital you'll we're this look, few really it's real virtually investors striving can wrinkle no say and downside products times the always bring have numerous for, And said wealth give where in competition the we've potentially we a gains. and and protect we're current today, what income nice

number a products of the we'll more in of have say we're quarters, that. think next I over those so, wirehouses, And to couple and on with on working conjunction

the nuance. Thank you, Doug. Appreciate Great.

instructions]. [Operator

Our with Bedell Bank. next question from comes go Please Deutsche Brian ahead.

the think - Maybe Great. theme, quarters. Thanks. you remind know retail wirehouses or onboarding on folks. to I and Good stay two of were morning, one that us the I can you fourth in third

market think And (indiscernible). using at penetration is of about how within sort about you to if you when you terms penetration what that? of product, the you're us in on as the least private the remind the now, Just And commenting mind or of RAA those in banks. the advisors opportunity your don't have thinking wirehouses well financial the wirehouses build and

sort - an more any of pullback the kind trying off of of of that retail to runway could by offset So, basically type penetration risk distribution or trying of get than understanding investors. offset

it the break by product. question. a It's for to of out Thanks have Yes. question. I kind good

diversified in sizable but we're wirehouses. with about income, our all I working the pretty don't As I we've syndicate our should saying, strategy, of have wirehouses, of all think core we lending there. built a those products start our by major

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and calling strategies about now, RIAs, the of team if I actively XX people all covering lot generate the comment next big on, of a out right right thing think the Remember, get want these you a advisors. are beneath is, on step of we're and of all we you take about the - marketplace, sales away. massive terms that the you then having don't It pushing three of takes financial about just and back, those bringing layer have products, do to In wirehouse we success. One a and you we're time. that producers, layer

them. educate to have we So,

get to we have success, but We product. can think great with tell the innings we had very We've the are in comfortable as where you, about we of you them we achieve. what are, would think I early

just to firm, Our I a can little penetration is think as nowhere time. as take a going let's we near to they've Blackstone. like say, It's what high bit get of And us close achieved.

the within well understand, to so-called this the I the that, many of these and just product, in product. use penetration a of even very reference the that familiarity significant one could, vast about to, Doug are is, don't individual which a Maybe wirehouses, you the with is to universe. power access set cases, of investors have FAs thin within getting still user. element are of benefits investor to the There's individual these of of just and slice platforms preponderance kind color made if probably even a talked clients But yet have add products. because which There's

it there, particular working all down not and it'll people gets very a us, particular redemptions. adopt particular space. to the end a risk attitude, more and are in bit be risk that's a is for And wealth big products, people the And but penetration. monolithic it's a and favor. off clients, a here So, seeing right? be orders not environment, our your it when to We're longer - off of might sure, lower more for fortunately person your thing, your day, of white per also, of At takes

that products like like distinctive, our adoption are product seeing lease net are triple truly We and our about, of product. Doug tech talked

and platforms we're that, just of new seeing lot we're on products. are of that these seeing many we with not So, a

what will of us. I this Again, happen but month, we're to know good not be think opportunity. we're we this about the trying significant to to area in this direction continues So, feeling takes month very environment, an pretend

you. color. Thank great That's

And Sumeet our will question from final go come with Mody Sandler. Piper Please ahead.

Hey, thanks. question. the Appreciate you taking morning, Good guys.

with on US, the M&A inorganic an adjacent solutions like maybe compelling wanted the any across targets, and maybe real are what to conversations you're front, geographies having get the maybe outside update things you're that. On finding just estate, most the new today the

our to all and to our look, I continue and it growth, business be probably are this of see to which think seeing on very again, Well, going what Sure. model, strong, you're plans predictable seen most we you've distinctive predicated it. know quarter the feature is the and visible, you're

course, all we can As we Alan count We what can of we said regular in that organically, see have and the to that's his control. comments, on, rhythm. speak, can steady so and growth

to own of part environment. scale people their interesting capital either be evaluating in question for Owl, with of a M&A opportunities. degree earlier the growth firms, people is the purposes want to Look, and want was the all to is platform like something for these in a or no we're what's there of good market of pretty IPO access it the continue However, marketplace? to be to going world part a active being benefits certainly, Blue about There happening this

So, certainly selective. going actively to continue to be engaged, we're

capital ecosystem to all extremely want You've We're be not we this all we market heard things times. things many to private to and want trying universe. people. be adjacent us the do, be of providing all in to say them this at good broader We this solutions to

to that will us we in mean, spectacular and thrive so. tactical wealth see which environment, environment, another certainly listen, a there's of Street, if set find you'll this continue continue can find to if think fleet, like we can a particularly are interesting we but all to guide going that funds a or in do some But any opportunities Oak So, I us. platform of spectacular

I will over the Ostrover, to remarks. call like that CEO, question-and-answer now today's would to turn conclude Doug And closing for session.

support. really And firm and steady forward with capital. quarter we've think is quite permanent for growth, grateful remain I'll from to pretty everyone's the of where a investors’ firm built pleased results, confident we're add, unique Well, have you well. thanks, just questions. tie want that poised our we to we Operator, that everyone, We thank a very say, the heading, I and we're income just a meaningful is you, that do take with all expectations. continuing look for third that hopefully it. in you to exceed we do look, stock to appreciate and We away with of hopeful we're stream

again. thanks So,

disconnect. you conclude And now conference. Thank and participation, may for this your today’s you will