Key facts
- Blue Owl's second-quarter profit increased.
- Assets under management reached $319 billion, a 12% increase year-over-year.
- Adjusted distributable earnings per share were 22 cents.
- Fee-related earnings were 25 cents per adjusted share.
- The company raised $7.8 billion in new capital commitments in Q2.
Alternative asset manager Blue Owl reported an increase in its second-quarter profit, with adjusted distributable earnings per share rising to 22 cents from 21 cents a year earlier. The company's assets under management (AUM) grew 12% year-over-year to $319 billion, benefiting from a rebound in financial markets.
Blue Owl highlighted its diversified business model, which extends beyond direct lending to include investments in data centers, infrastructure, real estate, and stakes in other asset managers. This diversification aims to demonstrate reduced reliance on any single asset class, particularly in light of recent turmoil in the private credit sector.
Fee-related earnings also saw an increase, reaching 25 cents per adjusted share compared to 23 cents in the prior year. Within its credit platform, direct lending originations amounted to $3.6 billion in the quarter, with $600 million in deployment.
Fundraising remains a key indicator for alternative asset managers. Blue Owl secured $7.8 billion in new capital commitments during the second quarter, contributing to a total of $50.5 billion over the past 12 months. The company maintained a 5% quarterly withdrawal limit for two private credit funds due to ongoing redemption requests, though these requests saw a slight decrease.
Total equity fundraise for the quarter was $7.6 billion, with contributions from its credit platform ($1.8 billion) and real assets ($4.4 billion), alongside $1.7 billion from wealthy individuals. Despite these positive results, Blue Owl's shares have declined approximately 36% year-to-date, reflecting broader market jitters surrounding private credit.