Blue Owl Capital reported $156.9 billion in assets under management as of Sept. 30, up 4.9% from $149.6 billion at the end of the second quarter, and an increase of 18.7% from $132.1 billion one year earlier.
Blue Owl executives attributed the increases, in part, to its fundraising. Blue Owl is a top industry fundraiser in both credit and real estate in terms of gross inflows, said Marc Lipschultz, Blue Owl's co-chief executive officer, during the firm's third-quarter earnings call on Nov. 2.
Blue Owl's credit business raised $2.2 billion in the third quarter and $7.3 billion for the year ended Sept. 30. The firm's real estate business raised $680 million in the third quarter and $6 billion in the 12 months. Its third business, GP Strategic Capital, raised $98 million in the quarter and $1.2 billion in the year ended Sept. 30.
"Overall as we head into the end of 2023, we continue to see fundraising tilting institutional for the year," said Alan Kirshenbaum, chief financial officer, on the earnings call.
Lipschultz and Kirshenbaum stressed that Blue Owl keeps more of the capital it raises than its peers.
For about every $5 of inflows in fee-paying assets, Blue Owl has just $1 going out in the form of distributions or redemptions, Kirshenbaum said.
"For our peers on average every $2 raised is met with $1 leaving their system, meaning half of their fundraising covers assets that are being paid out to investors in one form or another," Kirshenbaum said. "That's a huge difference. It's a big advantage for us."
Blue Owl reported generally accepted accounting principles net income of $15.1 million in the third quarter and $37.9 million in the year ended Sept. 30 compared to GAAP net income of $2.1 million in the third quarter of 2022 and GAAP net loss of $10.8 million in the 12 months ended Sept. 30, 2022.
