Blue Owl Capital (OWL) 9 Feb 242023 Q4 Earnings call transcript

Good morning, and welcome to the Blue Owl Q4 2023 Conference Call. Please note that today's call is being recorded. [Operator Instructions] I will now turn the call over to Ann Dai, Head of Investor Relations.

You may begin your conference.

Thanks, operator, and good morning, everyone.

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

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or Corporation successfully investors listing traded the delivering BDCs promised. of ago, III, XXXX. OBDC and company, second couple our publicly York the Owl first which this our remarkable results to returned a as those on traded Blue the Exchange, OBDE, Finally, to a become OBDE Stock publicly liquidity follows is of of Capital listed weeks XXXX in New XX% BDC,

lending retaining downside flexibility scale on focus for. excellent benefits known while optionality providing through structure that income, Our product direct protection remains investors Owl quality, the credit attractive is Blue our and and

the with a In in saw quarter Repayments constructive again business redeploy additional performance. we deployment so were far booming to environment Moving on to credit, in elevated, XXXX. capital. providing trends somewhat in fourth opportunities

the and detail, As basis has been more at of revenue gains digits EBITDA than health with our direct average. realized remain are remain at notable X and double changes of on no strong, Alan of by will to portfolio inception, points low offset annualized realized the companies. We lending robust growth loss which metrics portfolio since underlying the

consistent across our partner to seen allocate challenging more has share managers growth to asset cap We from continue incremental broadly classes. accelerating activity the positioned and more with we are to of to alternatives larger managers. phenomenon LPs to This in these translates we GP resilience impressive well growing sponsor-driven of benefit our the during continuing gains fundraising with market been stakes witness market And GPs share. In combined the environments. business, have

actively spreads we to pace meaningful across has to estate, attractive resonated and substantiating scale in real steady strategy for addition, for our industry enhanced of In looking tailwinds well the attractive deploy at further monetized to our rates funds. In and close alternatives, triple return a investment-grade the secured essentially X% appreciation points. our The witnessing net with are offer scale and continue we incremental at cap our this benefits live income rising consolidation in of consistently for have this potential. allow to value creating of entry lease investments credit, capital us investors risk

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to number a flow launch are to Looking of we intend focused ahead, a existing driven in pursuing net on expansion deal already are Europe, the our of see lease growth triple We today. platforms. there by strategy avenues we supplement

look the expertise strategic and And other to expect the to in strategic look for fourth discuss close its that to a me our quarter, further Alan there's are to expand positioning. large we can to and saying we acquire that, continue to to continue will please expanding alternative have into where immediate strategy to to lies credit lot to turn financial it what leadership. our market strategy. to wealth excited capital, first from institutional about we we'll forward first And grow institutional and held intend we committed Our evaluate conviction and a scale speak with results. business, and where the to. With we long-duration in investment the of very benefit we we pools grow addition as during such equity ways our entire and ahead I to team organically distribution, insurance. Generally, partner let

over fourth Thank Marc been Marc. to off, consecutive results. past manager both dividend years, show we our this with is and along XXth of recurring fees. you FRE X, XX% you, on our over to year that growing for quarter And management demonstrated quarter Slide X as driven To that able fee solely we alternative this, are this the but today. Good us and management has pleased only full growth, by I'd the we've this and morning, sequential like period. start XXXX with Thank grow reiterate that, asset mentioned our everyone. joining

over little fees go on and XX%. are right the these to and up management as basis. earlier, XX% our XXXX XX%, the not we for a target we of but the past fees we built across some driving and that past full intention few the margin fact on of model. are seen be of proving key And only mentioned up teens bit, management over tougher low highlights in growth with Let's up generated the market conditions, FRE on like we've double-click percent Marc permanent XX-plus growth, of expect XX%, of DE year believe the on growth year, is key a during were comparative we is continue favorable environments, capital from business importantly, year our results we generate through strong target, so. how our to next or to And vehicles. years. the FRE testament these is Management this fee which a average declines when our are peers is out able our top to metrics To XX% more DE

spend I'd moment efforts. a Now on like our fundraising to

see $XXX GP had funds sixth as fund well our of an co-investment Capital, $X.X over lending strategy. a lending raised break to capital, launched and Slide minority vintage can fourth initial for nontraded across we $X.X estate, quarter-over-quarter. our in billion REIT quarter across billion billion was XX, billion products. up $X.X software $X.X sixth of as remainder drawdown first our raised for our in $X.X lien raised you raised full Inclusive billion. in on In this equity approximately quarter million we fund, with brings Strategic XXXX. for This newly quarter-over-quarter. The over I'll In In BDC, that close and our raised $X.X strategies roughly OCIC, real equity raised strategy. fourth strategic $XX.X XX% over the up billion for XX% $XX strategies we we debt As billion billion non-traded the down and and the ORENT, which diversified year. with $XXX our million numbers includes over raised in $X.X stakes the in credit, and in million billion $XXX we fund

presence early to from each, coming our are in incremental of expanding see signs on XXXX. added and adding further starting forward ORENT in platforms distribution also late We the platforms production while XXXX that look to

over fee-paying have end represents earlier, our fee-paying AUM billion since As XXXX. X, AUM $XX added of the in since XXXX, to Marc alluded Jan we XX% growth the of over

of our assets layer it in in the AUM that largely notable is number emphasize is that to and While capital, I is permanent case. layer also will in have that next our so itself, stay system this be these

dollar every or for quarter, was result raised we the During distributions a that of paid $X.X out as redemptions.

we fees of Separately, on you the listing million to annual those of raised had our AUM over management paid $XXX know, of that fundraising, one corresponding we of December about quarter, turn upon time. we unlock staying fees once million the every that talked as for that incremental And BDCs Blue BDCs average dollar context, deployed. at benefit another previously of translates and power management addition over billion paying many of will have substantial Owl. list was $XX $XXX-plus $XX.X fact, would our of AUM For embedded And OBDE's to to the out. existing million in listing earnings ongoing not in last to was on $X.X incremental of time. XX, approximately management yet did, that million additional roughly annual peers $XXX-plus private recently. also fees fees of

platform. of the gross XXXX $X.X deployment. This billion and billion. deployment originations to quarter gross for for billion had billion on $XX.X net Moving of originations net brings funded our with funded credit $X.X of $X.X to We our

Our average across Weighted in low lending in remain XXXX. the X% LTVs the XXs, almost direct lending software in XX% the specifically fourth and low portfolio. returned credit our quarter in portfolio and XXs in

very the returns real of transaction volume estate net XXXX or our of Fund With million Fund the that activity the For trends equity presents with performance, a leases same capital of to and inflation XX% of compare private scarce $X real expense into the platform, Strategic across deployment which from for remains are for while which XX% robust in of including market performance the invested sight structure of with And And opportunities gross industry billion under XX% are deployment. principle of in portfolio of Fund from in deployed agreements our for attractive GP estate and strong over our distinctive to funds $X we fund, available funds strong, strategy as contract comparing recent insulates duration if and into pipeline quarter. contractual the line remains the would through us in fifth the many of remaining our the vintages. And total IRR remained a Fund on $XXX of across favorably most X% during GP III, net And returns V. environment, opportunities. our rent commitments stakes capital signs are or net rent capital for escalators portfolio shield billion IV experiencing, our all regards funds result close. platform, V, achieved The were with our over nearly favorably for of to with lease of billion these returns our long $XX broader Capital declining a growth opportunities, capital letter raised our across that risk-adjusted estate deployed median bring over intent timing which real seeing. being lease to and the our others

effective a X%. tax Okay. tax to tax We the on lower rate I'd like the for couple various to end of headline benefits, our margins at taxes, rate impact set rates and here is expect XXXX the keeping stage a with XXXX longer. be for of and we On saw our beyond. for effective to tax low comments FRE

rate we rate. For say, XXXX, And in tax a XXXX, expect the single-digit digits, that effective we to for high mid-single are X%. currently expecting be

cash XX%. the first rate first We say, mid-teens, an result of the in in quarter will be should making elevated payment TRA which in our XXXX,

X%, in margins, quarters just on and to the which roughly margins, approximately I down that alone, operating the industry. stepping noted. And frequently the business about in in For best for XX% for spoken very we XXXX, few feel years X% FRE the I've subsequent before averaging is X next the quarter our the FRE comfortable among

the that growth. is revenue into in very We're why the R&D so in about more lead to back continue bit a we investing talk can dollars the the business, level industry Let's for us. this valuable right putting future

follow-on like or have real that or the us grow fund, So every our continuing GP stakes a business, net product wealth launch into we're for equity strategic we scale like European sixth also All dollars funds launching estate our expand product new valuable sacrificing fundraising while, R&D we're and for to those growth our putting lease. We're efforts. and institutional not margin. helps FRE

thank the line I'd best that, everyone to has dividend we is revenue Our in open the please us and who joined like Operator, for call among growth on industry. With today. questions? the can the

Glenn Instructions] Schorr from Evercore. with [Operator first comes question Your

all outlook the love the love and I growth, So I stuff.

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so And products think having really net estate I lease strategies, year. on this distinctive it do are having a way the everybody we direct angle else's suffering that's really real by triple when

have as thriving estate differentiated We a real strategy. a product

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on would product Can that Cowen in update care, with think conversation? health you care us and is congo. health I on timing given this line right this

part set science extremely capabilities care, which, -- particular, pharma on Cowen -- I adding an the loans certainly sector and again, billion more care of another in putting in expanded of of done, it another ever saw investments that year. And the Well, product of cycle, And and health let Cowen think, care yet of or in level been about we health the is us deep $XX active you including brings have has in for actually adjacent this the contextualize earlier us. line another side. me side, Health the acquisition. activity way, royalties, better very

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comes from question Brian next Your Mckenna Securities. with JMP

as bright one X So a deal business the Oak transactions and done Marc the pretty XXXX, out But and estate that the outlook you have growth here. thing up me just to is stands ability of just source XX% absolute job flow. at level And acquired their years. has team the to some terrific well. the in AUM is Street real terrific end then with had about since of

the And how origination What's AUM much capacity time? their talk of can business you perspective? can about So support team size from the today? the investment over ultimately, an

Well, a Marc spectacular has Zahr done job.

billion over the We transactions a that's I'm the fund, is that in our partner you this millions LOIs. you tell of already really $X hundreds twice start. X So the in LOIs that, and if and largest strong model, architected for you The unique And durability of dollars fund could U.S. through attributes, billion you I business, know, in real fund size sorry, have have a year. course, entire commending now estate of shine this to I its as of has over thank off which -- deployment year. with fund, business and last raised already $X in new join I'll in -- we and our billion, will there -- the

say it this ahead pacing and users element of credit. So our more ways of And moment, needs much adaptation. alternative People because private would demand for high to have we're finding year, product. ordinary corporate like thinking finance. is the over right solution disruptive probably pace it's product more people in capital experienced at an about large I using of the like There's markets to the this ultimately you and people innovative get the last

have, at highs And this really running in the so record we right, point, billion. our things overall backlogs of pipeline at $XX terms our all over are in

have and, on to So course, we focus of we as plenty Europe. to reach that into also extend continue

you say don't if I space. owned So think by very, massive I that's the to large mean mean, constraint. is the It's a amount that around and an very a mostly not it's of real world, no estate just there's transacted. area institutions about critical investment-grade want I white

every fund kind company with marketplace, you a is or do a step are fragment. to, every to market contextualize course, amounts asset take it not So what this biggest that but our we're even going of in suggesting I'm and close, of if versus that back

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been in very wonderful great long institutional credit asset for a chip A going us. many dollars active a for core example, we've with So time, for dialogues many, with very companies, run big asset to what and that's counterparties.

estate every in now. us then appreciate have is the and we work global. Pipeline -- And we addressable they sizable. I another hard rich real with Europe So to vein that is companies we Europe day as they ask work real is in mentioned, we're to as very continuing and market working on have estate about how a right mine Europe. investments, whole to best their but find best the because I active And are

view. of leg growth another that's of So point from our

quarter. Super helpful. And on congrats another great

comes Goldman Alex Your next Blostein question with Sachs. from

little I just bit, talk -- to a out broadly. fundraising about more a little I maybe wanted bit zooming want to

important a it's between channels products. guys flows are balanced the really You had that to both year. I exiting note, little nice the And becoming and bit momentum think, a more

fundraising next expecting importantly, So how for you're see that of year? of into out for as the should And what sort aspirations whole? the the breadth XXXX, is more think firm as to the about flows we you're looking a

something in phrasing I about I both highway. several the business, think, our adjacent is the And to important strategies, the your start fourth insightful the in several Alex. Thanks, having did just continuing of indeed question an much very want and legs observation reflect, in adjacent with, evolution staying of northbound quarter which is having

people this of things not conversation. So all have to the beginning all a is that back be clear, strategy to we

do we that have But arrows quiver. in more

what And we one show so in to up the saw in well set that period. of kind fourth all starting was of quarter

that will obviously to in repeat you We which focus sort in our very any think did exact you is manage business as we and of way flagships that see cautious so try see launches, I'm guess Fundraising, of what mandates quarter-to-quarter know, timing itself just products. I the quarter. Now on or based this product manage don't fourth way. between breadth about very is episodic and quarter, quarter-to-quarter. But more

significant now of -- have have see plenty fundraise significant launching We and very is which the only continue XXXX. our we're few both year had in we've product, GP in Because estate products. And and again, inflow on access number much in we likewise, have and then institutional, to offer we and between platforms multiple to only and expect -- in and to net we real got real room fundraising is still product wealth more this we significant offer of platforms marketplace, in credit, will to a continues points that have that just the product to stakes, on developing a we real estate multiple very estate are run. of product. many There's new fundraising

good new in channels. long credit, be talked chunky always flows SMAs. or heading as I a of and numbers when composition think those big comes the are is a strong of to kind feel on in strong. well. those platform, seen we're do be balance the place and there's into and think exactly building going actually like for We've convert to between some to institutional we when be block in continues I start that the between about into us We've launch So to XXXX. Again, and XXXX new and we continues a flagship products but of ebbs wealth And

X-parter, then of one but you for sort Great. guys, bit a promise of related. a I question actually, they're And strategic

guys insurance doing But why opportunities mentioned explore just you On not balance sheet, Solutions? the kind the does, looking stakes you JV that's the Dhabi, to that, strategy an ownership the and to think bigger the How JV? a insurance taking partnering in think saw manager And you you do Dyal of balance GP majority insurance so sort structuring launched are of sort guys that's counterintuitive a behind you companies of and sheet, maybe do ownership, related out scale. about the Abu for strategy again, of How minority one. What's part little obviously, firm. that? a about with do minority what given asset fact I

appreciate both and Sure, questions.

have Owl look, area years, insurance, time to trying develop been spending that it's regard to with a Blue we an first, on for strategy. So appropriate

So this. with let's start

Look, working wealth done that, is on We institutional, We're have X that. we with traditional may about point not peers of that terrific we're we're strategy. our our we be have our adding solution, to that that something channels management to developed. From true to pretty view, and obviously, third We've on today, others capital most leg thoughtfully. again, of insurance. that focused right don't The access so develop have but some of institutional. in We been the aware the business. in bring we have of able are stay it's to one well talked key going asset

do insurance on strategy, strategies, That's have We focus. strategy. been will company. of aspire those anybody Both are opining We to our successful sheet balance insurance remain to have an an other We for else's own enormously company. we're people. our not so aspire People different not become not light.

So management, our access asset a how channel way. much more we about is balance in the light do sheet strategy insurance

an where Maybe what question? as now cylinders firing it of continue acquisitions So intense focus. an into focus second in that's as was it's And gotten our the And we kind focus more -- ever regard and your really intense quarter. With fourth XXXX. other really our you see sorry, integrated, we've head -- will is. to can the to be

Lunate.

Yes, JV. Lunate Yes. the

product highly to clear adjacencies point architecture, for is about strategic to that and having where can GP our we back be of the and just solutions add are on way. additive our investors this this distinct in part a So value

we large fund, So the today, as the in by managers, Veritas, for fact, are focuses cap GP And the really very Silver solutions. much design, cap CBCs, large that Lakes. on you market know, the

distinct we've area built an a so been network. And that's

firms our flagship it fourth smaller market. operational a got space. the in because BSP, our firms -- not which we may growth younger more another support that where that have been actually love has middle we're well, and with not higher these are firms We we a those substantially, start And our off focus, lot good or be quite but resources in to potential grow of so-called ongoing arena or higher quarter. There's our course, we that have the of

we're we combination to advantage equity. beyond should results, our for. I'll coming practice and growing and our as, investor delivering value. be again, paid all consider things our around back very are of think our been largest value our network to to understanding you with to in our and to whole But real a firm We're all $XXX with the market. In delivering -- in far, so a themselves, with billion going coming distinctive. a on have fund of lot people anchor to but can't proposition large can certainly resources, market, the in big operational for operational to growth, to That's paid hold at billion, get intends GPs support BSP hence, about when Well, the brings marketplace to there and best a that. $XX So now resources what how and are to something the Lunate private get $X When our a for very all that is want Lunate outstanding capabilities growing risk-adjusted delivering of entire valuable to big impact of speak, you the way solution right? cap with bring capability that Zahr, do that to capabilities that value-added have this markets, investor manage GPs, by kind which and the value a to have If we our in-house. we middle investor of continue are those you partnership billion best is of the manage to afford ability price. And that those we're X it. And to many that's

along have positive view who's also to someone anybody obviously, of going bring partner we So we a very, very with. strong and,

bring that own goes make their deep this along they'll but So pool. partner capital that, decision with we

in So and below this value space, of billion a middle $XX don't brings think position AUM. we real market that into to add that I control us

way complementary. the pie, it's out -- filling going the really It's across So the not it's the all spectrum. just puzzle,

with Craig Bank of Your America. next from question comes Siegenthaler

we So fundraising. back on circle wealth private wanted to

of we the flows smaller you could if could major major OCICs it wanted So in flows both you XXXX. today. into would trajectory platform early be products near ORENT's comment too, products And platform you real update impressive. on is to if a given the investor both also improved any estate. expect And And PB roughly or see I helpful amount, on provide an launches over had doubling just in which many if the sales shelves on quarter, how term? wirehouse sentiment But softer although pretty sit

we've that channel. been we It's up obviously see I able channel a started build to after Great. We're benefits into and guess, since been investment. of And coming years, to be to a X. decade, on X trying day great it's that the

We've trusted of spent people partnerships. a a this. focused on of lot time building have We lot

these it. quarter it's day, since So a if look end in no return. delivering very keep XX% small TIC products. listen, our momentum In At coming about we to did I'll back have continues. you it's the The the inception about of good wealth just and channel interest And and part, product, performance. that fourth a delivered

XX% that X% -- investors. product, our mean, outperformance just mammoth CIC tax return. And distribution product a our rate many at a advantages for I has stability look You and delivering about with ORENT

always that to. I come that's are back the because hopefully drawn So value-add people to part

and tech of core income growth products. income on So a we our continue to and That's great see in lot interest platforms.

number that's you is I frankly, people so-called actual That's utilize lot say platforms be low. work very platforms. places still who have that really that to continue There can't of I that share looked low. a answer in we low. The the front this, of numbers don't on of partner platforms. penetrate. mean the And we've power meaningful really with our of is look, numerically. amounts I the of all the users, the it. recently But product Now so to will use of what And I penetration FAs one of me,

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this to as as our We're real both talked this deep We're credit. So we in because know, view estate has at have enormous of the would year think we're We've -- when working business mentioned. Europe, deep estate credit. strength you in the I we real And been we in distinctive last still potential about model estate we about look and business, assets. to our have ahead, fastest-growing like fastest-growing channels adjacencies. something the geography, continue be of real be we It in. real filling before, think in into distribution, literally things we estate.

real very for reason, we're you is about is think quite very I'll thing a the opportunity, real I estate good disruption. Last very, the say -- this a estate. wisely. enthused and said There So about a negative sentiment given especially

So we through the sell to have of kind up.

baby in succeed way number, you we're but this category, bit actually here the we'll an it. right? to manner, higher is yes, lease pap cap client then disruptive of sentiment, showing are the where You a get a said rates, And measure, getting cap investment-grade "Oh, negative to real but net we therefore, saying, estate, those and of purchases that's it's get by X take today, if down uplift water great a our rate warehouse great in people that's words triple just it. There's wait, the

because institutional side I platform. a if Marc, wealth on the we that add very obviously can to strong have

We're expecting we very And in of already this very off also a strong already institutional XQ. We've got multiple year you of strong institutional. a XQ strong there, well. and we in were come And the to a when year institutional XQ, strong in products. saw We saw very we start platform. institutional numbers have number credit side the on a we in We business. breadth have have out products think about XXXX the as what

product. strategic equity our have We

very a but in got lending we GP We are Stakes that have fund some have we and real be going to very to in close, have existing a XXXX new products VI. We space clients. interesting estate the strategies. diversified to Fund long XXXX, institutional obviously here think initial strategies, just we We've and lien and first go did big way

Great.

about barbelled with as you $X for in that hold that I you this And close middle new first follow-up know there markets you the $XX the some quarter the end, like in middle. still? VI near expect the Do launched and some you had billion XQ, Just billion term target. at or fund for in beginning over the V. on I kind a a more of just I my a be Dyal big out fund, should until something raises Dyal recall fundraising every two very for raises be little but being to know then $X get billion to consistent?

Sure.

did out On we your take we XX that. in an close with XX initial last to a release hours. point, So so Lunate last that press or just just got happy the

gates, gets they're when I'm I kind of out product the the I attributes have that. listing sorry anchor a commitment mentioned, the large making here, to also of but us was Yes. should right on

not all. at no, No,

have ahead a continue Fund we've so GP be of there's got got that and excitement some to take done. going think our -- Stakes going We to to some time It's raise a first raise interest road like lot product close And we've to product. that And there the product. to VI. over just we

with For for of that we listing we Blue don't barbelled it Fund V like VI, our expect right Owl. was did Fund in to we saw what be the middle when

of wealth. a straight And so line be between flow we a more it's institutional and it'll and think there. Look, to little going ebb

a us It bank. large on a like you'll to. And one platforms platform. wealth to private may institution, time little some really were for on we Don't the take a quarter one one so stronger get It big see wealth. all quarter was little forget Fund we'd that stronger for V,

table to platform. ability Now the and we all a bring wealth out the Owl relationships more Blue the on lot to really here get have

on X recall, So you if when our percent we across brought that. And we're investor amongst excited bases institutional all had businesses very these side, businesses. the together, overlap single-digit we about our

we opportunity all those Now across cross-sell have investors. the of to

still alternative products, definitely as this It certainly look, it's very And a front-end has back-end so all bit Craig. But load but excited we're well, and one. that as about a of load. a

everyone -- the not Everyone don't want listening that linear. of be lumpiness will this -- quarter. knows close. to it billion So the of $X we nowhere near It's timings different natural on here

acquisition that particular we time the in IPO. V at did a Fund then So and have with the attribute

do get first time So before to period of It's calls then there's another close done. we think close. more time anticipate I should some period don't you some -- we before then of But get you and still another have that.

will linear, So it out middle. in be hold will it as be quite -- not it but the should

TD with Cowen. question comes Your next from Bill Katz

through coming earnings that's up the Just It's back to a lending. theme season. entire been of been sort direct coming

of the up. developing. nonetheless, out volume on see growth a that of curious competition extent particularly direct Just for to how pricing pricing could you unit wondering the that side little the on be sort outlook as I'd you Appreciate bit platform there's comment things more maybe as lending well if picks there. But the

lending. to certainly environment for and Sure. be been direct a It's good continues very

that not. whether of happy to in fact, about a large talk in are sun. You but not part perfectly is, how lot wants satisfied credit, their I'm day of we're strategies about of a all private point But to talking -- about a said it. people attention the to we're or a Dyal, little happy chuckling, much a it's sudden it. We're bit have

sun. We stay in also the gets get to that everything

with it a that long is solution in very and users, and equity. we to our for going scale them look, So at to a compete long time, don't be are reliable in in capital at a way this and doing that tailored for and a time in them, we've fashion private delivering for been

think we do And I distinct it's good a environment today. architecture here. a So look, said, with all have that

economy where -- if can will that months. quarter, from you look I the with the think XX to report the we'll sound. to full views. it is, and our we lag X course, the able call you last this our it portfolio, be at all is We companies. I portfolio all of have what have performance different about tell in And of

platform than was across were growth higher growth Our point quarter. the EBITDA EBITDA In average revenue the the XX%. of and prior fact, on

from certainly, good macro a that's broadly to U.S. -- biggest on have portfolio. not portfolios, micro of here attractive suggesting at indicative very, pretty solid don't And measure a industries, from So we've think me very economy this I I we're we does economy, not would an businesses up tell now we think the actually some the the reason a very or economy micro the in but unhealthy attractive it healthy and all with obviously focus backers. be point got experts the

good. that's So

people We the seeing all you the M&A activity go And what understand, I they're continue But into this. fourth into things if restart to picking big and first are always then because have all quarter. talk these new quarter cyclicality M&A have from things to Those finishing here which related, are a first again, is quarter community, are a to as obviously up natural processes. people quarter, to of is are able you and strong demand. insights better say we to lot that

natural So aside timing. the setting

feel is like very sentiment I think we strong. the

year. of So very good the had dry activity us likely very activity private trillion a equity this obviously year $X.X tepid outlook in year. powder. to There's And of feels they last terms

we We there'll that world would the have our this, love more thing a be more one it share. lot I what So But love looks boundary in position think I getting ultimately a lending, still activity. activity. And have would market like love more that a aggregate expect is credits. imagine activity liked condition. just would market be we're in direct activity be aggregate We the We and done. to

more hopefully, and So that. should expect gladly and be XXXX take reasonable a year to it seems active we'll

to on come to question finally, about So your competition. spreads

assets has obviously no more been equity So to to have equity. accumulating been now it's private deployed. raised here have credit, historically more proportion in dollars course, than in true, private private that of And that in get fact, but

And a fully the I we we out, to the the of anticipating needs so remains liquid think need I have capital and market to in -- more all balance again, meet markets generally looking market feel markets. We capital return like environment. activity, functioning the can't

we is our down Remember, peaks. XXXX, exactly since levels. running from that while that from public billion what -- have operated public years We're so than we'll come it's X and environment gains. more big functioning and really take back there that's But that's done over Look, ago. a rate basis credits was been market. just and come our loss no And measure. of our has getting a okay. their loans, points. And And have in and been activity couple still pie of by spreads, inception, spreads, meaningful in saw more We $XX for course, fact, time well by in certainly we've paid offset will market, wonderful a in overall, hopefully, them particularly wide realized

remains wider new to can deliver of So that a the parting I large And it's end today. Doug which in. attractive is, We're for our have a the topic. But different in the this originate activity lot the we to the of if with pyramid headlines reasons, about proposition take credit performance, sponsors, of but ability we the your double-digit in of we top and of That like lot other the course, a and, market, companies that's articles pyramid, returns. entrants, credits as are people, credit comment part our better whom really it, the of we before. of of very At some it's mean, not have risk-return the of the we'll a largest of kind largest have doing course, we're the market of like, spread that has in a a handful many in talked domain trendy the point, we're raised for like money. view. reason underlying

are of had the if that look them people -- you a hands of dollar flows, the dollars dollars same at the the So of handful before. in lot the

of there's we The lot changing the really been pyramid of of jocking there. where top not the isn't bottom down the pyramid, a meaningfully. It's new operate. So definitely people

don't interrupt I sorry, -- mean Okay to you.

and wondering But you think then the offset? have you production one back other how later trying in spending to was bigger into an Blue they're you, I'm started if XX% reinvest the cycle. for Owl you the business that quickly spend into transaction quarter. of you mentioned going of sort the little picture and broader that. is, this than you do elevated number your continue that. is item, just line if Blue what's bit margin, spent Alan, business. A ramp on unpack certainly question, second that housekeeping just flesh much within particularly who for The the management one in wondering behind that signaling heavily could question what the Owl quite wealth could was which as get was I a question investment could maybe out to of peers strong, of side behind my have So of terms strong still that, up sort particularly

Sure. Thanks, Bill.

generally talked They in So gross follows on the follow originations. lockstep. that trend the don't of we've the past transaction fees, about

biggest could a quarter. have XQ quarter. quarter, bigger ever we one the So lower transaction in little origination next quarter our second and a was growth fees

had following a we -- had transaction that, very fee So quarter. we strong

and we for will focused have And built-out into to both And not continue in wealth expand the for margin, -- expand. a and lot to We the being valuable dollars institutional complacent put we the fundraising. to about institutional want grow back regards. in on both want and On world around institutional to look, U.S., wealth a very teams. We we're expand XX% to We the we're to fundraising that. we to those want both to talk wealth. very in want continue industry continue we going and

launching So new to to ours invest continue going products. that. we're also in We're

Stakes like VI. so real you when or think big a remarks, I raise scale I estate about And Fund about GP talked each product, every that my VI think in Fund scale product we

launching we're products new that other margins. lower have have much We

the that next few XX% blends everything we to see so for And back that years.

next with Wolfe comes Chubak question Steven from Your Research.

ask on on acquisition, tech-focused earlier is to some gave great hoping sense better today? funds? of the scale given that a have great faster I health it capabilities your broader I care even question you strategy. trajectory wanted an you in recognition, Should quickly foothold about in it Healthcare Or how It the just to following Cowen you you similar of brand greater what could growth strategy. sciences to be could just some which better response a distribution space. think the we was the a gives life color to But get

right add. and develop to certainly be value things well take we and opportunity. a These Well, see the to time develop able look, to meaningful

been look, think maybe tech lucky able that and I future appreciate -- wish someday, don't to -- we was has and we we're health would of care so we extraordinary, that's mind. in the create template I that And will. I are the and opportunity. somehow that have it

It's be very is clear. across building this an active already methodically platform. the and about think we're area to I

As this $XX in arena. I investments said, done we've billion of already

early and pretty think, lot it's direction on say timing, a a So our too to really scale focused to is of developing area but platform. Tech, very give was it's I you we're it think safe I an on a a of software and much much is with that. such is But trend, It we developed true developed more more case. special LPs. were set platform have early more we infrastructure and and developed a much mega so

that solutions special. care it. life was services we talking and this definitely of huge certainly from opportunity. I'm complete economy, part about a sciences is is exciting health have another pretty think the But set now I care health structured to to capabilities. And an

as you your Thank And XX blue the way, posted -- all you develop. note. nothing to we're in the work flash on it, and keep about So certainly we'll by for that. we love going I

with Patrick from comes Research. question Davitt next Your Autonomous

middle like bank and you less that there deal disintermediation the market than is to out view play. where activity exposed lending larger market This

volume that what take the borrowers in opens guys syndicated refinancing new up. So outflows vein, market as you are seeing high-yield broadly give back and of larger terms and and that from between deal in

other the the day, course, whether end have it's certainly bank not you true. lines to syndicated traditional as us, flow been the -- mean, I away susceptible back, It's way know. of from of So the toward the less market at

companies nothing the You're of part loans. better. all, of offered get you We the average, nature listen, those problem -- and fits size kind as not syndicated brought on but nowhere scalability. that's do near one But to tell can the credits transactions. And with not always of and smaller a take going terms no good small these credits are are the I the and

and large us, "Oh, if it's mean fine argument I So know want position alone somehow, isn't to I genuinely banks an cap." flows. There But With not a don't understand an perfectly of here's the over for advantage It's strategy. to strategy. smaller perfectly to cap doesn't you don't the business. advantage. kind a try That regard good the

liquid with to I the think hands. in in seeing and good some we're point. it's of at entirely different return liquid when different some forces vibrant the that kind course, return about work, make a of asterixis and have function on I you functioning a is which in mean in really show the good There's say, are ways is the that. and they'll we market, market of of abstracts market. of functioning up is, happy I'll the X need nice private we sort So the times, Again, marketplace. The

try our again, return had document. calls, So the if years. And the And you of to from there's the won't And liquid transaction little stricter periods, were no for or activity statement. equity people well, performing the up in speaks when markets our origination a and private is in more you going for proposition remember, very point having some be point forward. The work in like do by aggregate. equity of wasn't view that's a said, this all, the an I we wide that there work happened a ends thriving that of paid even then now absolutely it's over matter there's point which XXXX bit not open what's predictability, by something And more and that's But what course, document. when way, market. the we've and the last because on going that I just to other using was I for a that loans. once a they have of the net the users an want kind private privacy, equity to asterixis charge being will conclusive. this have if not XX several they lot we not solution, don't true. value of proposition when XPs, Look, when bumping you be, active but option or don't partnership there's years, I option. But be around to positive the meets anything knowledge private bad private course, overly a even this, think, that's many do those people, And been tested do value people that investor about decide stricter a to that talked of this, did many, often it and to has mean dynamic you're bidirectional is option return, biggest of means I an say every can asked, it going

course, it trouble, of You get in will that's matter, and how ourselves. we protect

I that I preferably dealing at importantly, private worse, a ease is, instead to option. having and predictability of of to can to capital thrive having our buy I'm a be an else opportunity one the XXXX. "Absolutely." the lot go Can truly so add calling call, that, of continue terms, then day, times And on will No think, of And can "Hey, So as buy. saying, realizing syndicated change so what of are for me will now. structure, will want execution or last, think to bondholders And there I less, that answer up some of that provide in when we've end people now the for mentioned, you you the an people, I quarterly lot stockholders. as market. reporting And phone the not partnership with things had better. And better most right a capital?"

suggesting that are market down going come to are market. syndicated But to the our something in otherwise. not We

everybody question, that I out direction of there's "Oh, in lenders X." great lot of already market be propositions. to saying, I'm have We've Things and having seriously. Finastra. The to that job. private are a done noted had we with them a the you market in that people a value right? with different that, experience have back coming your done take really We've to when So than otherwise for who with As do X market, And banks seen with deal flow PetVet. we've would I opportunity the more excited or great great there's suggest probably that that XXX can

us we a great job. both doing I our a ecosystem do think and healthy as of job

great, follow-up. Helpful. The obviously, but growth EBITDA I recurring revenue in excludes XX% that the assume loans. portfolio, A quick the

you us is the on how borrowers update are what of could percentage those portfolio performing? and revenue So recurring

in front percentage the have of me. Don't

can very is healthy. they're say software So well. continues I the that but doing extremely to be can't That quite answer to that, say I area

software a to a be where loss on have we yet a continue had in We place not loan.

that be we've not a fact, default true. had And to In continues on software loan. a

stand recurring or years we would businesses by about loans when well. the continue I what And concluded -- are ago. do very I the to X think revenue So those portfolio,

now. the why is there the the best market, to and place went average are we in on there Software -- is credit why which we first go

loans SaaS right, the rates spending loans big gross revenue is recurring that or to revenue XX%, well. a way very recurring their understand, amount traditionally a of has revenue, the tremendous in gross in further of reasons a U.S. that grow a above But of recurring gets pictured. profit, business Remember, those doing people loan the margins. But company and is grow further because lot revenue what elsewhere. dollars of lot of not again, for at So XX% therefore, a the company that's context in hey, average enterprise are a attention thing of, sort one on I the it other lot margin

revenues that XX% you to pay and bill. get company, you don't of marketing your don't a if to on As spend interest sales, your lender

a for undervalued. If I margin, that thought all business. Blue may and has I have And revenue structure $XXX until million think by million though average think pay I this to I shown, and on XX%. it's one it my percent any I And that it's So don't have spend get think of not to we And true. a to XX% on of But want it's spend. I XX% capital has and it spend I my durability in growing fraction say $XXX sometimes be to I the of still elements only but distinction, that gross financed. to lost, Owl of

through. want of Those just feel to company, love Like we positions, we stability I we experienced our the So this talk raised. there are have "No problem, And let's of questions those got that to we've and growing. the when say, good very some you." people earliest about and been keep

we for everybody? up come works how about How money? that something up we put So about more some with

with question from Brennan Hawken next UBS. comes Your

Covered a lot this morning.

feedback was been what far. I traded hopefully, about So long it's here. that questions but my aren't haven't listing so from days, has curious I early the well. too OBDE know shares

would talk the of between some of or in reception. any not vehicles. any the consider and investors could impacted And maybe a that's benefits to whether merger what about those listed bring BDCs you curious potential So to those

Of course, long. not certainly are well, too your questions

But transparent. can be think to we any are like there's my long. too conclude answers I all to danger we

option now these -- have an amount wonderful that So an but position with the listing not for we that create extremely We people a regard create received in we been told with here's that appropriate the a to had basis listing, obligation of to liquidity. People wonderful and when has liquid orderly private well vehicles in return. why. said, the time, illiquid the position, return, an earning a earning will,

buy it And there's a a their at to that so mystery the in and remained lending, are to I for but investors you that wouldn't certainly we in sell why direct a NAV? Now to many public considering discount has to no would anything us, don't that. reason market say prefer one fact, BDCs

want of level don't Some volatility. that people

different a different to invest. the points, they preferences the create how people fine ecosystem, different heck a have create of So point, But proposition. for access back it's want to

going So priorities, variances in going matter, sell adjusted may your to wherever price because you be, you're that want if trading these to you you don't have great. and other if sell really for aren't get dividends. But then them to

a Now fund. that you traditional option that doesn't exist have in

our for to to -- important and we because it's deliver the received option investors well at time. right deliver commitment very our that us our us, been commitments it's think was I So on to to

to with regard that. maybe to you forward, So possibilities the it turn going I'll Alan, mergers, for

to question. for Thank the evaluate shareholders. you are continue we options BDC Sure. thank Marc. the that strategic Look, you, to available Brennan, our

continue the the have shareholders. On into natural to side, at continue look something that could OBDC. be III, lending we which is that and York we Stock diversified OBDE. like listed time Exchange. OBDE we We to to to have on But to continue New BDC could X, over our talk BDC also have now merge It

private continue public lending as the II. options OTF evaluate X on side, and BDCs, tech for side, we And OTF the we those to On well. shareholders software have to

It's fully OTF levered. is the II, are OTF, invested, some we have fully We still fully which of capital. deploying deployed.

and drawn to capital the lot whether down we'll make progress our list it continue the there. to evaluate then that. we'll over them look then But shareholders And merge X sense a course list year, We this of or continue there. all at have and those next from to makes of to not one

the I know and spoke months dividend only about then X to And dollar, it. to the environment but ago potential seem does be better. getting the Got risk when it the you was guys last

So in guys growth that Has some we have should -- unchanged? to given improvement you risk dollar environment? nice outlook year. the that guys up putting the dividend the in for the Or those are that diminished, seen consider in XXXX this you still

raised Listen, the we remain dollar. are $X.XX. on taken business deliver really XX% step, fundamentals in nice And we've dividend or another to the right? around track And strong. in certainly, to We've

And range. give So We here we you around, and remains pick enough in There's that time feels step XXXX and about in obviously, that The purpose. get still we us trying being to all target. feel in deliver. variables comfort. good more obviously, every in on dollar good collectively closer, there we can our that

year incredible I stability of of of organization. of all than all peers at grown of look is results, our point come because the the when think and an we to I that our the predictability average results, really double kind key that's metrics our are now the many to we've of our back important XX%. And here which more good this growth, the want kind model,

And predictable in now ago. that where we is are also a all talked true. is done highly we we've right a So Remember about that exactly where year way.

but I of I pure changes predictability with, pleased this didn't numbers. We our think fourth did carry. have in in really performance year there'd just despite of what the We maybe be quarters, think is the expect we're mean but the things and obviously, People people -- after is the market. carry quarter. was it, much in strength our be all most distinct some didn't that the lot to fourth about strong consistency good also have don't a very not which, people

So down. came numbers

So I narrow. the us band tighter closer, comfort. following gives every dollar qualitatively around probably And that you think get that the a should time predictability band, be

So our dollar. aim remains the

to band We continue the business. given forward. see that pathway it gets case, band within be narrower any and should a our just But the of in nature narrow

colleagues many $X you So to do you on for really to I'd things folks, helpful. your real find that have it's what It's do paint When share how modeling. straightforward, picture that all for the and and we a in Marc, happen. to love get how to get this that your goal. that to we keeping handful not you of a about Brennan, just do the It's focus and will things hopefully, think of

about think of billion. I billion $X.X when So $X.X revenues XXXX to

We line sight on. have revenue $X that of have billion we another of

revenues $XXX equity raising billion? of are million $X of fundraise million, that is that, from $XXX Some those way, by dollars. more any the what So not about

in OTIC, as that growth growth as and just without private earning And have so the line from OCIC revenue our fee XXXX X whatsoever. Then about from when XX% we product you million well add would years, fundraising a public for our That's million a and AUM So talked -- GP $XXX that's non-traded X-year deploying 'XX. our step-ups million XXXX BDCs. 'XX over GP we're just revenues a and from fundraising of that doing to any and right? BDCs, VI. the not $XXX few taking the Stake to next That's fees XX% revenues products, targeting stakes our our represent we've X over another yet on $XXX

earlier, Marc total little As commented, a that's a XX% a I of that's and growth. revenue but closes, between ebb flow as going to commented

And on what so need to to wealth side. a do we the fundraising you hit think need the to do share, $X when keep we about

happen. When hard we've We if Fund one, we the OBDC lot key but this. keep of to $X achieved a Stakes to we're margin nontraded there's III, a out that dollars for happen BDCs, and maybe work, coals in of products, have all out ORENT, of how of of -- a We be talked a an achieve deal dividend. lot take a the the you for a CIC, then We've clear, beyond not us rate those we're listed to And lending things share happen. fire not that lot VI. one there. things putting few FRE things of that putting just traded our TIC, continue as back of goal going and GP And growth to about It's to both, accretive but have list M&A already share. to to XX but a XXXX. to raise our growth, have software that dollar to number that have to continue now our XXXX, it's raise out It's XX% OBDE. business can that to Fundraise R&D very beyond a into obviously, are strong look it's

question Sandler. next Piper Love with comes Your from Crispin

Just one question for me.

On the all European product, organically between the product you major that talk to little a lease time? more are Is than other there and over can done be the differences the European net any about And expected that? obvious? bit U.S. if

Yes, happy to.

we the a today, with work obviously, U.S.-centric So we some we have are But companies a do product, opportunities global. U.S.-centric Europe, focus. in but in

and is have have we'll how U.S., what great And need solution dedicated we to we for expand structure we capital and said, need, be now pool you that's the this available to periodically, about really to we that through that they a able do us listen, Europe. so a have regularly And what of appropriate one. But "Hey, in to with come do Europe?" meet

And similarities difference? Well, enterprises, customers, and they're is following the in so really case. demand Is that in every obviously, demand same following the cases, substantial. is there high-quality we're a our companies. the really global And very many not

work are the is customers. and in can The of with. we with work we our current opportunity, for have So therefore, the where we skills. can distinctive lens us expands the it leader expands that our customers market because terms It already in organic

organic terms, opportunities say right terms in is an real thing little average, now. to build, is better talk the team Europe the the lease this only probably that when are to opportunity. any So the an a there on I differences? The Are today,

the in more Europe. But the end rates structure of well of know really a At is do place here marketplace what say, putting credit, for don't little I significant. statistically it attractive. probably it's cap taking so quality doing that's a day, I'd that this we in and meet So and optimized so if to doing

Brian Your Deutsche Bank. next with Bedell question comes from

with Brennan's Alan, mostly. answered question Great. question my you

on you going Maybe mentioned the impacting and just alternative prepared been whether that right talk opportunities the for NGP Whether opportunities then like you can probably to on the -- seeing that direct to get -- VI maybe the I'm of earlier there's considering about you around that. the activity. can So in management your combine within you event, from asset for on And we've potential skip GP maybe about to follow-up. business, how if one it that's vein, that in thoughts Marc, -- see size, that thoughts sounds that's business. this. Maybe deal go in consolidation also remarks Certainly, stakes, just just Fund that. XXXX my that wanted lending your more just but check rising the Solutions I around turning the

alts of consolidation terms a happening -- It's material there is And fashion, like in right? The having. Absolutely. in it's and of are explorations pretty continuing pending it conversations, clearly people seems to you. thank in activity a activity noticeable, lot out there's be

implications do I tailwind was back seen big We've deliver that seen for is, was that, it's already consolidated of guess, for ways. investors. for we themselves IPOs, one, of for the a purchased right? our And importantly, up substantial results selling good GP great your more be say And a will result in Capital probably coming question We path to X Strategic to over or so on most to a a right some which stakes that. few great ] how us. Perhaps like [ in hits and GPs, some time. a ArcBot other that tends look, of be end that, whom there'll other business. And number We've us get tours Most clearly products. vast I our own I

the lift funds. our potential value of in So GP prior all in that a consolidation realization valuation is and

one to So be to working the for consolidators. good is start our presents there, opportunities, other on I'm another also capital to Strategic and have hand, going also with capital GP the that's that's to you it, for buy It you're going people because new firm great the investors. choosing there's do of one So provide need need our to right? business motivation another to might Capital where

creates We're stake side. on that the more GP so active And demand.

We as have of know, V. lot commitments, of Fund investing conversations. largely We're you a through active the

even bring this a VI, close. Fund before, kind of In Fund V done just vehicle from fact, little here to that did us now we've we mentioned bridge where co-investment we to

an So portfolio clearly more for it deal It a should area. have both activity. and is be active favorable dynamic to activity, for consolidation

much but of So positive trend. out, plays the a exactly helpful it's as a it's see a positive we'll how year

Brian, closing, our to of end Fund VI out, did And close on that the towards the just closing the we quarter.

XQ. So impact management starting a we'll start see in to positive fee

with final question Ken JPMorgan. Your from comes Worthington

Hard to left, got I've imagine there's one. any but questions

Bring it home strong.

real held Real market and last this favorable XQ. really year Yes. private year out yield triple sort and returns, in environment negative the estate has up was the net you well of called the in lease and estate were of versus parts quarter other

returns call So out the anything drove the quarter? to of what negative? on kind this Or

this on been wonderful is design. our durable high-risk by -- markets, and it's signal a market, really strategy That's to seen in mean in value this performs the we've obviously, And that that and in add that hard environment, all through be. I So to noise. brand signal our people loud a look, get through reason this that comes the and is has here.

result this about aggregate but actually are was on negative I for loss, to a -- peculiarities this about very remains business. pretty estate There mark-to-market for what template nothing quarter to the the we Performance is in really, performance. really was part, The our good than The strong. for a we've and where done As some it's nothing for But the that direction. fourth where this year tied has loss which a mark-to-market haggle been. quarter, other well. not peculiar extremely small worth was slight in real debt portfolio

This Lipschultz Marc for question-and-answer I any remarks. concludes turn now our the will session. back call closing over to

you time here to your this look time. the appreciate And and us. patience Thank for drive we spending We to forward the really continuing all do hard. morning with

forward mission share We and work and year about $X goal have opportunities point that excited get but in our we in good a to ahead, to a to are and lot XXXX. driving a of this try the the Have to keep starting day. conditions for

everyone. you, Thank

conference. today's concludes This

now You disconnect. may