Blue Owl Capital Reports Strong Q4 with Record Fundraising

Blue Owl Capital has showcased remarkable growth with Q4 earnings of $0.23 EPS and significant fundraising. Strong net deployment and diversified strategies indicate a positive outlook for investors, making it a compelling opportunity in the alternatives market.

Date: 07-02-2025

AI Rating: 8

Financial Overview
Blue Owl Capital reported fee-related earnings (FRE) of $0.23 per share for Q4 2024, with full-year FRE reaching $0.86 per share. This indicates a growth of 26% in FRE for the year, showcasing strong earnings performance.

Record Fundraising
The company set a record with total fundraising of $27.5 billion in 2024, which is approximately 75% higher than the previous year. This is a substantial increase and demonstrates strong investor interest in Blue Owl's products.

Deployment and Credit Quality
In a challenging macro environment, net deployment for 2024 was robust, amounting to $16.6 billion, alongside strong origination metrics in direct lending. The average annual realized loss rate stood at a low 11 basis points, signaling high credit quality.

Strategic Expansion
The firm's diversification and strategic acquisitions enhanced its position in the alternatives market, with an optimistic outlook for M&A activity in 2025.

Key metrics from the report indicate a favorable growth trajectory:
- FRE increased by 26%.
- DE increased by 22%.
- $9.5 billion raised in Q4, a record quarter.
- Net lease capital deployed reached over $4 billion in Q4.

A strong dividend announcement of $0.90 per share for 2025 indicates financial health and confidence in continuing returns for shareholders. The company continues to emphasize growth and innovation in its investment strategies, particularly in credit and alternative assets, further solidifying its market position.

Overall, Blue Owl Capital exhibits strong operational metrics, effective management practices, and a clear growth strategy, thus presenting a positive opportunity for investors.

Stocks: OWL