BLUE OWL CAPITAL INC.
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 31, 2026
OWL$9.82-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001823945-26-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001823945-26-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 205 previous paragraphs and 246 current paragraphs.
137 unchanged; 54 reworded; 37 added; 13 removed; 1 previous and 18 current paragraphs rearranged.
Tables are not compared: 20 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (37)
Current report
During the second quarter of 2026, global equity and debt markets adapted to shifts in expectations around major themes such as inflation and the trajectory of interest rates as well as ongoing geopolitical relations and their impact to certain energy prices. Stronger than previously indicated job growth and sticky inflation drove expectations of rate hikes, a reversal away from the forward rate cuts anticipated at the beginning of the second quarter. Temporary periods of de-escalation in the Middle East throughout the quarter drove certain energy prices lower. Equity market dispersion continued, with single stock volatility outpacing index volatility by a wide margin as artificial intelligence (“AI”) hardware and other perceived beneficiaries of AI spend continued to drive thematic investment.
Current report
The 10-year Treasury yield in the United States ended the second quarter of 2026 approximately 15 basis points higher than March 31, 2026 and experienced a peak to trough range of more than 40 basis points during the quarter. The CBOE Volatility Index, or VIX, peaked above 25 during the second quarter of 2026, but mostly sat below 20 as tensions in the Middle East experienced temporary periods of de-escalation throughout the quarter.
Current report
In Credit, gross deployment in the second quarter was robust, led by alternative credit and investment grade credit strategies. Alternative credit has become a larger part of our Credit platform, having grown AUM 35% over the past year. Over this time, we have meaningfully scaled both drawdown funds and our interval fund, the latter of which eclipsed its one year anniversary in the second quarter. In direct lending, credit health remains strong and the performance of our funds and vehicles has continued to outpace their relevant public benchmarks. We also continued to experience elevated redemption requests in certain Blue Owl managed non-traded BDCs, though such requests were moderately lower compared to the first quarter of 2026. We continued to see deployment consistent with an industry backdrop of moderate sponsor-driven M&A activity and continued to see meaningful repayments at par, another metric demonstrating health and liquidity within the portfolio.
Current report
As of the second quarter of 2026, our Real Assets platform has expanded seven-fold in AUM since we first established our foothold in late 2021. Over the past year alone, Real Assets AUM and revenues have each grown by more than 25%, and we were ranked #2 on PERE’s Top 100 Real Estate fundraisers globally. Our strong presence and performance in Real Assets is due in part to our focus on sectors such as data centers, industrials and reshoring, healthcare and cold storage. Across the platform, we see nearly $160 billion of near-term opportunities across both our digital infrastructure and net lease pipelines.
Current report
In GP Strategic Capital, we continue to focus on generating attractive and income-driven returns for our fund investors, with an emphasis on distributions paid in. Over the past eight quarters, we have engaged in five strip sale transactions that in aggregate generated $4.6 billion of capital returned to investors. We continue to see strong interest in our capital solutions from both limited partners in our funds and general partners in which we take stakes as a result of the current market landscape.
Current report
•Credit increased $23.3 million, primarilydue to continued fundraising and deployment of capital within new and existing products, including management fees from direct lending and alternative credit products which increased $14.2 million and $11.6 million, respectively.
Current report
•$1.0 million increase in fee income earned for services provided to portfolio companies.
Current report
•The remaining increase was due to higher compensation to existing employees, as well as increased headcount due to our continued growth.
Current report
•$7.6 million increase in dealer manager expenses, primarily due to growth in the distribution of Blue Owl Digital Infrastructure Trust (“ODIT”), ORENT and other net lease products.
Current report
•$8.6 million offsetting decrease in Transaction Expenses (as defined below), primarily due to lower costs incurred in the current-year period, compared to costs incurred in the prior-year period related to the mergers of certain of our BDCs that occurred in 2025.
Current report
Change in Earnout Liability. The change in the earnout liability for the current year period was due to an increase in the fair value of the Prima Earnouts and Atalaya Earnouts. The change in the prior year period was primarily driven by the IPI Earnouts, as a decrease in our share price drove a decrease in the value of Common Units delivered to sellers during the second quarter of 2025 when the earnout liability was settled (each as defined in Note 3 to the financial statements in our Annual Report).
Current report
Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025
Current report
Revenues, Net
Current report
•Credit increased $75.4 million, primarily due to continued fundraising and deployment of capital within new and existing products, including management fees from direct lending and alternative credit products which increased $52.5 million and $20.8 million, respectively.
Current report
•Real Assets increased $10.1 million, primarily due to higher management fees of $40.5 million driven by continued fundraising and capital deployment within new and existing Real Assets products, particularly ORENT, partially offset by lower digital infrastructure management fees, as the prior-year period included $35.1 million of catch-up fees from Blue Owl Digital Infrastructure Fund III, substantially all of which were paid as contingent consideration to the sellers of the IPI business.
Current report
•GP Strategic Capital increased $12.4 million, primarily driven by fundraising in our sixth vintage GP minority stakes product, partially offset by a fee step down in a prior vintage GP minority stakes product that occurred in the fourth quarter of 2025.
Current report
•$10.8 million increase in fee income earned for services provided to portfolio companies.
Current report
The increase in fee offsets of $21.9 million was driven by alternative credit and digital infrastructure products. There were no fee offsets for the six months ended June 30, 2025.
Current report
Expenses
Current report
•$47.0 million of increased amortization related to equity compensation grants, primarily driven by annual grants made during the fourth quarter of 2025 in connection with year-end bonus compensation, as well as acquisition-related equity compensation.
Current report
•The remaining increase was due to higher compensation to existing employees, as well as increased headcount due to our continued growth.
Current report
Other Loss
Current report
Interest Expense. The increase in interest expense was primarily driven by higher average debt outstanding, reflecting a higher average balance on our Revolving Credit Facility (as defined in Note 7 to our Financial Statements).
Current report
(1)There were no catch-up fees for the three months ended June 30, 2026. Includes $5.3 million of catch-up fees for the three months ended June 30, 2025.
Current report
(3)There were no catch-up fees for the three months ended June 30, 2026. Includes $1.5 million of catch-up fees for the three months ended June 30, 2025.
Current report
•Credit increased $23.3 million, primarilydue to continued fundraising and deployment of capital within new and existing products, including management fees from direct lending and alternative credit products which increased $14.2 million and $11.6 million, respectively.
Current report
•GP Strategic Capital increased $7.4 million, primarily driven by fundraising in our sixth vintage GP minority stakes product.
Current report
Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025
Current report
FRE Revenues
Current report
(3)There were no catch-up fees for the six months ended June 30, 2026. Includes $1.5 million of catch-up fees for the six months ended June 30, 2025.
Current report
(4)Includes $5.2 million and $0.8 million of catch-up fees for the six months ended June 30, 2026 and 2025, respectively.
Current report
Management Fees. For the six months ended June 30, 2026, the increase in management fees was primarily driven by the following:
Current report
•Credit increased $75.4 million, primarily due to continued fundraising and deployment of capital within new and existing products, including management fees from direct lending and alternative credit products which increased $52.5 million and $20.8 million, respectively.
Current report
•GP Strategic Capital increased $12.2 million primarily driven by fundraising in our sixth vintage GP minority stakes product.
Current report
Fee offsets. For the six months ended June 30, 2026, the increase in fee offsets was driven by alternative credit and digital infrastructure products.
Current report
Included in the six months ended June 30, 2026 were the cash outflows of the portion of the KAM Earnouts classified as contingent consideration in excess of the acquisition-date fair value that was paid in the second quarter of 2026. The amount paid up to the acquisition-date fair value was included in financing activities and the remainder (i.e., accretion since the acquisition date) was included in operating activities.
Removed paragraphs (13)
Previous report
All amounts shown as of March 31, 2026, totals may not sum due to rounding.
Previous report
During the first quarter of 2026, global equity and debt markets experienced elevated volatility, with significant dispersion across equity markets, spread widening in fixed income markets, and outsized moves in commodities as a result of intensifying geopolitical conflicts and heightened focus on the evolution of artificial intelligence (“AI”). The 10-year Treasury yield ended the first quarter of 2026 up nearly 15 basis points from December 31, 2025 and experienced a peak to trough range of nearly 50 basis points during the first quarter of 2026. The CBOE Volatility Index peaked above 30 during the first quarter of 2026, its highest level since April 2025.
Previous report
In Credit, the environment was characterized by tighter spreads and muted sponsor M&A activity, resulting in gross deployment of $6.8 billion for direct lending and $2.8 billion across our other Credit strategies. We continue to monitor key performance indicators across our direct lending strategy, and underlying portfolio company growth has remained healthy. In the first quarter, we held final closes at above their targets for both our inaugural GP-led secondaries and our alternative credit opportunities products.
Previous report
Across Blue Owl’s Real Assets platform, we continue to find attractive ways to partner with investment grade companies, building, financing and owning their most mission critical assets. The appetite for data centers and build-to-suit net lease projects has continued to grow meaningfully as a result of cloud computing, AI, and reshoring demand, with pipelines near record levels across net lease and digital infrastructure. Investors continue to commit significant capital to these strategies, reflecting increasing demand for Real Assets strategies industry-wide and interest in Blue Owl’s differentiated capabilities.
Previous report
In GP Strategic Capital, we continue to focus on generating attractive and income-driven returns for our fund investors, with an increasing emphasis on distributions paid in. During the first quarter of 2026, our GP Strategic Capital product made an investment into Atlas Holdings, a leading investment platform with a differentiated owner operator model within the industrial, manufacturing and distribution space, and we see a strengthening pipeline of deployment as a result of the current market landscape.
Previous report
All amounts shown as of March 31, 2026, totals may not sum due to rounding.
Previous report
•Credit increased $52.1 million, primarily due to continued fundraising and deployment of capital within new and existing direct lending products, including management fees from alternative credit products which increased$9.2 million.
Previous report
•$9.8 million increase in fee income earned for services provided to portfolio companies.
Previous report
•$16.9 million increase, driven by higher compensation to existing employees, as well as increased headcount due to our continued growth.
Previous report
•$15.3 million increase in amortization primarily related to acquisition-related equity compensation, driven by the Atalaya Earnouts. See Note 3 to the financial statements in our Annual Report for additional information.
Previous report
Income Tax Expense
Previous report
The change in income tax expense was due to higher pre-tax income in the current period as a result of the drivers discussed above. Please see Note 11 to our Financial Statements for a discussion of the significant tax differences that impacted our effective tax rate.
Previous report
•Credit increased $52.1 million, primarily due to continued fundraising and deployment of capital within new and existing direct lending products, including management fees from alternative credit products which increased$9.2 million.
Reworded paragraphs (54)
Previous wording
As of March 31, 2026, our AUM was $314.9 billion, which included $188.4 billion of FPAUM. As of March 31, 2026, we had $29.9 billion in AUM not yet paying fees, providing approximately $349 million of annualized management fees once deployed. See “—Assets Under Management” for additional information, including important information on how we define these metrics.
Current wording
As of June 30, 2026, our AUM was $319.0 billion, which included $190.6 billion of FPAUM. As of June 30, 2026, we had $31.1 billion in AUM not yet paying fees, providing approximately $380 million of annualized management fees once deployed. See “—Assets Under Management” for additional information, including important information on how we define these metrics.
Previous wording
Our business is impacted by conditions in the financial markets and economic conditions in the United States, and to a lesser extent, globally.
Current wording
Our business is impacted by the financial markets and economic conditions in the United States, and to a lesser extent, globally.
Previous wording
During the first quarter of 2026, we experienced more modest inflows and higher redemption requests in certain Blue Owl managed non-traded BDCs, driven by heightened focus on private credit. More broadly, capital raising during the first quarter of 2026 was diversified across asset classes, strategies and channels, resulting in $11.0 billion of new capital commitments during the first quarter of 2026 and $56.6 billion over the last twelve months. We ended the first quarter of 2026 with substantial available capital to deploy, reporting $29.9 billion of AUM not yet paying fees.
Current wording
We operate three differentiated platforms at scale across Credit, Real Assets and GP Strategic Capital. AUM of $319 billion grew 12% year over year, with growth across each platform. Over the last twelve months, approximately 85% of our GAAP and FRE management fees were generated by Permanent Capital. Capital raising during the second quarter of 2026 was diversified across asset classes, strategies and channels, resulting in $7.8 billion of new capital commitments during the second quarter of 2026 and $50.5 billion over the last twelve months. We ended the second quarter of 2026 with substantial available capital to deploy, reporting $31.1 billion of AUM not yet paying fees.
Previous wording
As of March 31, 2026, assets under management related to us, our executives and other employees totaled approximately $6.2 billion (including $2.9 billion related to accrued carried interest). A portion of these assets under management are not charged fees.
Current wording
As of June 30, 2026, assets under management related to us, our executives and other employees totaled approximately $5.8 billion (including $3.0 billion related to accrued carried interest). A portion of these assets under management are not charged fees.
Previous wording
Management uses AUM not yet paying fees as an indicator of management fees that will come online as we deploy existing assets in products that charge fees based on deployed and not uncalled capital, as well as AUM that is currently subject to a fee holiday that will expire in the future. AUM not yet paying fees could provide approximately $349 million of additional annualized management fees once deployed or upon the expiration of the relevant fee holidays.
Current wording
Management uses AUM not yet paying fees as an indicator of management fees that will come online as we deploy existing assets in products that charge fees based on deployed and not uncalled capital, as well as AUM that is currently subject to a fee holiday that will expire in the future. AUM not yet paying fees could provide approximately $380 million of additional annualized management fees once deployed or upon the expiration of the relevant fee holidays.
Previous wording
Credit. The increase in AUM for the three months ended March 31, 2026 was driven by the following:
Current wording
Credit. The increase in AUM for the six months ended June 30, 2026 was driven by the following:
Previous wording
•$4.1 billion of new capital raised, primarily driven by $2.3 billion in direct lending products reflecting continued private wealth fundraising in OCIC and OTIC, as well as new and existing products across the strategy, $0.6 billion in alternative credit products and $0.6 billion in strategic equity products.
Current wording
•$5.8 billion of new capital raised, primarily driven by $3.1 billion in direct lending products reflecting continued private wealth fundraising in OCIC and OTIC, as well as new and existing products across the strategy, $1.0 billion in investment grade credit products and $0.8 billion in alternative credit products.
Previous wording
•$0.7 billion of additional net debt commitments, primarily in direct lending, as we continue to opportunistically manage leverage in our BDCs.
Current wording
•$1.2 billion of additional net debt commitments, primarily in direct lending, as we continue to opportunistically manage leverage in our BDCs.
Previous wording
•$4.3 billion of distributions, which primarily relates to distributions paid from our BDCs, alternative credit products and investment grade credit products, as well as $1.2 billion of redemptions from non-traded BDCs.
Current wording
•$9.0 billion of distributions, which primarily relates to distributions paid from our BDCs, investment grade credit products and alternative credit products, as well as $1.1 billion of redemptions from non-traded BDCs.
Previous wording
•$0.9 billion of overall appreciation, primarily in our alternative credit strategy.
Current wording
•$2.3 billion of overall appreciation, primarily in our alternative credit and direct lending strategies.
Previous wording
Real Assets. The increase in AUM for the three months ended March 31, 2026 was driven by new capital raised of $4.0 billion across various products, primarily in our seventh vintage net lease product, Blue Owl Real Estate Net Lease Trust (“ORENT”), our net lease REIT and our real estate credit products, as well as $1.3 billion of additional net debt commitments, primarily in our sixth vintage net lease product and ORENT, partially offset by distributions of $1.0 billion, primarily in our net lease strategy.
Current wording
Real Assets. The increase in AUM for the six months ended June 30, 2026 was driven by new capital raised of $8.5 billion across various products, primarily in our seventh vintage net lease product, Blue Owl Real Estate Net Lease Trust (“ORENT”), our net lease REIT and our real estate credit products, as well as $1.1 billion of additional net debt commitments, primarily in ORENT and our sixth vintage net lease product, partially offset by reductions resulting from distributions of $2.1 billion, primarily in our net lease and real estate credit strategies.
Previous wording
GP Strategic Capital. The increase in AUM for the three months ended March 31, 2026 was driven by appreciation of $1.4 billion, primarily in our GP minority stakes strategy, and new capital raised of $0.9 billion, primarily in our GP minority stakes strategy, including our sixth vintage product and co-investment vehicles, partially offset by distributions of $0.8 billion in our GP minority stakes strategy.
Current wording
GP Strategic Capital. The increase in AUM for the six months ended June 30, 2026 was driven by new capital raised of $2.2 billion, primarily in our GP minority stakes strategy, including our sixth vintage product and a continuation vehicle in conjunction with a strip sale, and appreciation of $1.3 billion, primarily in our GP minority stakes strategy, partially offset by reductions resulting from distributions of $1.1 billion in our GP minority stakes strategy.
Previous wording
Credit. The decrease in FPAUM for the three months ended March 31, 2026 was driven by the following:
Current wording
Credit. The decrease in FPAUM for the six months ended June 30, 2026 was driven by the following:
Previous wording
•$2.7 billion offsetting increase in new capital raised, primarily driven by $1.1 billion in alternative credit products, $0.6 billion in strategic equity products and $0.5 billion in investment grade credit products.
Current wording
•$3.9 billion in new capital raised, primarily driven by $1.7 billion in alternative credit products, $1.0 billion in investment grade credit products and $0.6 billion in strategic equity products.
Previous wording
•$3.4 billion of distributions, which primarily relate to distributions paid from our BDCs, and $1.2 billion of redemptions from non-traded BDCs.
Current wording
•$7.1 billion of distributions, which primarily relate to distributions paid from our BDCs, and $1.1 billion of redemptions from non-traded BDCs.
Previous wording
Real Assets. The increase in FPAUM for the three months ended March 31, 2026 was driven by capital raised and deployed of $2.1 billion, primarily in ORENT, our real estate credit products and our seventh vintage net lease product, partially offset by distributions of $0.7 billion, primarily in our net lease strategy and a $0.3 billion fee step down from a prior vintage net lease product.
Current wording
Real Assets. The increase in FPAUM for the six months ended June 30, 2026 was driven by capital raised and deployed of $4.5 billion, primarily in ORENT, our real estate credit products and our seventh vintage net lease product, partially offset by distributions of $1.4 billion, primarily in our net lease strategy.
Previous wording
GP Strategic Capital. The increase in FPAUM for the three months ended March 31, 2026 was driven by new capital raised of $0.6 billion primarily in our GP minority stakes strategy, including our sixth vintage product, partially offset by distributions of $0.4 billion, primarily in our GP minority stakes strategy.
Current wording
GP Strategic Capital. The increase in FPAUM for the six months ended June 30, 2026 was driven by new capital raised of $2.3 billion primarily in our GP minority stakes strategy, including our sixth vintage product and a continuation vehicle in conjunction with a strip sale, partially offset by distributions of $0.4 billion, primarily in our GP minority stakes strategy.
Previous wording
(1)Information presented in the AUM through Total Value columns for this vehicle, as well as total return, is presented on a quarter lag due to the vehicle being a public filer with the SEC and not yet filing its quarterly information as of our filing date. Additional information related to this vehicle can be found in its filings with the SEC, which are not part of this report. MoIC and IRR are not meaningful as we consider total net return to be a useful measure of the overall investment performance for this product. Total net return was 8.8%, calculated as the change in NAV per Class I share since inception (annualized) plus any distributions per share declared in the period and assumes any distributions are reinvested in accordance with our distribution reinvestment plan.
Current wording
(1)Information presented in the AUM through Total Value columns for this vehicle, as well as total return, is presented on a quarter lag due to the vehicle being a public filer with the SEC and not yet filing its quarterly information as of our filing date. Additional information related to this vehicle can be found in its filings with the SEC, which are not part of this report. MoIC and IRR are not meaningful as we consider total net return to be a useful measure of the overall investment performance for this product. Total net return was 8.9%, calculated as the change in NAV per Class I share since inception (annualized) plus any distributions per share declared in the period and assumes any distributions are reinvested in accordance with our distribution reinvestment plan.
Previous wording
Management and Other Fees, Net. The increase in management and other fees is due to increases of $59.7 million from management fees, and $21.8 million from administrative, transaction and other fees, partially offset by an increase of $10.9 million in fee offsets. Fee offsets refers to management fee offsets as a result of amortization of incentives paid to certain investors in our products.
Current wording
Management and Other Fees, Net. The increase in management and other fees is due to increases of $38.2 million from management fees, and $23.7 million from administrative, transaction and other fees, partially offset by an increase of $11.1 million in fee offsets. Fee offsets refers to management fee offsets as a result of amortization of incentives paid to certain investors in our products.
Previous wording
•Real Assets increased $2.7 million, primarily due to higher management fees of $18.5 million driven by continued fundraising and capital deployment within new and existing Real Assets products, particularly ORENT, partially offset by the change in management fees related to digital infrastructure products which reflects $21.0 million of catch-up fees related to the IPI Acquisition during the first quarter of 2025.
Current wording
•Real Assets increased $7.4 million, primarily due to higher management fees of $20.4 million driven by continued fundraising and capital deployment within new and existing Real Assets products, particularly ORENT, partially offset by lower digital infrastructure management fees, as the prior-year period included $15.7 million of catch-up fees from Blue Owl Digital Infrastructure Fund III, substantially all of which were paid as contingent consideration to the sellers of the IPI business.
Previous wording
•GP Strategic Capital increased $4.9 million, primarily driven by fundraising in our sixth vintage GP minority stakes product, partially offset by fee step downs from prior vintage GP minority stakes products.
Current wording
•GP Strategic Capital increased$7.5 million, primarily driven by fundraising in our sixth vintage GP minority stakes product, partially offset by a fee step down in a prior vintage GP minority stakes product that occurred in the fourth quarter of 2025.
Previous wording
•$7.2 million increase in administrative fees, primarily driven by a higher level of compensation expenses reimbursable from our funds due to the growth in our products and business overall.
Current wording
•$20.0 million increase in administrative fees, primarily driven by a higher level of compensation expenses reimbursable from our funds due to the growth in our products and business overall.
Previous wording
The increase in fee offsets of $10.9 million was driven by alternative credit and digital infrastructure products.
Current wording
The increase in fee offsets of $11.1 million was driven by alternative credit and digital infrastructure products. There were no fee offsets for the three months ended June 30, 2025.
Previous wording
•$17.8 million increase in amortization primarily related to recurring annual equity grants, driven by additional grants made during the fourth quarter of 2025 in connection with year-end bonus compensation.
Current wording
•$19.2 million of increased amortization related to equity grants, primarily driven by annual grants made during the fourth quarter of 2025 in connection with year-end bonus compensation, as well as acquisition-related equity compensation.
Previous wording
•$4.8 million increase in dealer manager revenues, primarily due to growth in sales of net lease products.
Current wording
•$7.5 million increase in dealer manager revenues, primarily due to growth in sales of net lease products.
Previous wording
•$25.8 million decrease in Transaction Expenses (as defined below) primarily driven by expenses in the first quarter of 2025 due to the IPI Acquisition, as well as the mergers of certain of our BDCs.
Current wording
•$34.4 million decrease in Transaction Expenses primarily driven by expenses in the first quarter of 2025 due to the IPI Acquisition as well as lower costs incurred in the current-year period, compared to costs incurred in the prior-year period related to the mergers of certain of our BDCs that occurred in 2025.
Previous wording
•$7.2 million decrease related to the Services Agreement, which was entered into in January 2025. See Note 10 to our Financial Statements for additional details on the Services Agreement.
Current wording
•$9.2 million decrease related to the Services Agreement, which was entered into in January 2025. See Note 10 to our Financial Statements for additional details on the Services Agreement.
Previous wording
•$9.6 million offsetting increase related to expense support for certain products that we manage.
Current wording
•$12.3 million offsetting increase related to expense support for certain products that we manage.
Previous wording
•$4.6 million offsetting increase related to dealer manager expenses, primarily due to growth in the distribution of Blue Owl Digital Infrastructure Trust and ORENT.
Current wording
•$7.1 million offsetting increase related to dealer manager expenses, primarily due to growth in the distribution of ODIT and ORENT.
Previous wording
•$11.9 million offsetting increase in other operating expenses across various categories that were individually immaterial, primarily in occupancy and other office-related costs, and professional fees, driven by our continued growth.
Current wording
•$21.0 million offsetting increase in other operating expenses across various categories that were individually immaterial, primarily in occupancy and other office-related costs, and professional fees, driven by our continued growth.
Previous wording
Change in Earnout Liability. The change in the earnout liability for the current year period was primarily driven by the change in fair value of the KAM Earnouts (as defined in Note 3 to the financial statements in our Annual Report).
Current wording
Change in Earnout Liability. The change in the earnout liability for the current year period was primarily driven by the increase in fair value of the KAM Earnouts. The change in the earnout liability for the prior year period was primarily driven by the IPI Earnouts, as a decrease in our share price drove a decrease in the value of Common Units delivered to sellers during the second quarter of 2025.
Previous wording
Net income attributable to noncontrolling interests primarily represents the allocation to Common Units of their pro rata share of the Blue Owl Operating Group’s net income due to the drivers discussed above. The Common Units represented an approximately 56% weighted average economic interest in the Blue Owl Operating Group for the three months ended March 31, 2026.
Current wording
Net income attributable to noncontrolling interests primarily represents the allocation to Common Units of their pro rata share of the Blue Owl Operating Group’s net income. The Common Units represented an approximately 56% and 59% weighted average economic interest in the Blue Owl Operating Group for the six months ended June 30, 2026 and 2025, respectively. The year-over-year decline in the Common Units’ interest in the Blue Owl Operating Group was driven by exchanges of Common Units for Class A Shares.
Previous wording
(3)Includes $0.3 million and $0.4 million of catch-up fees for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(4)Includes $4.9 million and $0.4 million of catch-up fees for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
•Real Assets increased $22.0 million, driven by continued fundraising and deployment of capital within new and existing Real Assets products, primarily ORENT.
Current wording
•Real Assets increased $21.8 million, driven by continued fundraising and deployment of capital within new and existing Real Assets products, primarily ORENT.
Previous wording
Fee offsets. The increase in fee offsets was driven by alternative credit and digital infrastructure products.
Current wording
Fee offsets. For the three months ended June 30, 2026, the increase in fee offsets was driven by alternative credit and digital infrastructure products.
Previous wording
FRE General, Administrative and Other Expenses. For the three months ended March 31, 2026, FRE general, administrative and other expenses increased, primarily driven by occupancy and other office-related costs, reflecting our increased headcount due to our continued growth.
Current wording
FRE General, Administrative and Other Expenses. For the three months ended June 30, 2026, FRE general, administrative and other expenses increased, primarily driven by occupancy and other office-related costs, and professional fees, reflecting our increased headcount due to our continued growth.
Previous wording
(1)Includes $7.5 million and $1.7 million of catch-up fees for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(1)Includes $7.5 million and $7.0 million of catch-up fees for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
FRE Administrative, Transaction and Other Fees. For the three months ended March 31, 2026, the increase in FRE administrative, transaction and other fees was driven primarily by an increase of $11.0 million in fee income earned for services provided to portfolio companies.
Current wording
FRE Administrative, Transaction and Other Fees. For the six months ended June 30, 2026, the increase in FRE administrative, transaction and other fees was driven primarily by an increase of $17.2 million in fee income earned for services provided to portfolio companies.
Previous wording
We rely on management fees as the primary source of our operating liquidity. From time to time we may rely on the use of our Revolving Credit Facility (as defined in Note 7 to our Financial Statements) between management fee collection dates, which generally occur on a quarterly basis. We may also rely on our Revolving Credit Facility for liquidity needed to fund acquisitions, which we may replace with longer-term financing, subject to market conditions.
Current wording
We rely on management fees as the primary source of our operating liquidity. From time to time we may rely on the use of our Revolving Credit Facility between management fee collection dates, which generally occur on a quarterly basis. We may also rely on our Revolving Credit Facility for liquidity needed to fund acquisitions, which we may replace with longer-term financing, subject to market conditions.
Previous wording
We ended the first quarter of 2026 with $190.5 million of cash and cash equivalents and approximately $1.1 billion available under our Revolving Credit Facility. Based on management’s experience and our current level of liquidity and assets under management, we believe that our current liquidity position and cash generated from management fees will continue to be sufficient to meet our anticipated working capital needs for at least the next 12 months.
Current wording
We ended the second quarter of 2026 with $169.1 million of cash and cash equivalents and approximately $1.1 billion available under our Revolving Credit Facility. Based on management’s experience and our current level of liquidity and assets under management, we believe that our current liquidity position and cash generated from management fees will continue to be sufficient to meet our anticipated working capital needs for at least the next 12 months.
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Current report — wording carried from elsewhere
•$2.7 million increase in dealer manager revenues, primarily due to growth in the distribution of ORENT.
Current report — wording carried from elsewhere
General, Administrative and Other Expenses. General, administrative and other expenses increased primarily due to the following:
Current report — wording carried from elsewhere
•$4.7 million increase in other operating expenses across various categories that were individually immaterial, primarily in occupancy and other office-related costs, and professional fees, driven by our continued growth.
Current report — wording carried from elsewhere
Net income attributable to noncontrolling interests primarily represents the allocation to Common Units (as defined in Note 1 to our Financial Statements) of their pro rata share of the Blue Owl Operating Group’s net income. The Common Units represent an approximately 56% and 58% weighted average economic interest in the Blue Owl Operating Group for the three months ended June 30, 2026 and 2025, respectively. The year-over-year decline in the Common Units’ interest in the Blue Owl Operating Group was driven by exchanges of Common Units for Class A Shares.
Current report — wording carried from elsewhere
Management and Other Fees, Net. The increase in management and other fees is due to increases of $97.9 million from management fees, and $45.5 million from administrative, transaction and other fees, partially offset by an increase of $21.9 million in fee offsets.
Current report — wording carried from elsewhere
The increase in management fees was primarily due to the drivers below. See Note 9 to our Financial Statements for additional details on our GAAP management fees by strategy.
Current report — wording carried from elsewhere
The increase in administrative, transaction and other fees was driven primarily by the following:
Current report — wording carried from elsewhere
•$27.2 million increase in administrative fees, primarily driven by a higher level of compensation expenses reimbursable from our funds due to the growth in our products and business overall.
Current report — wording carried from elsewhere
Compensation and Benefits. Compensation and benefits expenses increased primarily due to the following:
Current report — wording carried from elsewhere
Net Income Attributable To Noncontrolling Interests
Current report — wording carried from elsewhere
Three Months Ended June 30, 2026, Compared to the Three Months Ended June 30, 2025
Current report — wording carried from elsewhere
FRE Administrative, Transaction and Other Fees. For the three months ended June 30, 2026, the increase in FRE administrative, transaction and other fees was driven primarily by an increase of $5.2 millionin fee income earned for services provided to portfolio companies.
Current report — wording carried from elsewhere
Fee-Related Earnings and Distributable Earnings Summary
Current report — wording carried from elsewhere
Fee-Related Earnings and Distributable Earnings for the six months ended June 30, 2026 increased as a result of higher FRE revenues in Credit, Real Assets and GP Strategic Capital, partially offset by higher FRE expenses, as further discussed below.
Current report — wording carried from elsewhere
(2)Refers to management fee offsets as a result of amortization of incentives paid to certain investors in our products.
Current report — wording carried from elsewhere
•Real Assets increased $43.8 million, driven by continued fundraising and deployment of capital within new and existing Real Assets products, primarily ORENT.
Current report — wording carried from elsewhere
FRE Compensation and Benefits. For the six months ended June 30, 2026, FRE compensation and benefits expenses increased, driven by higher compensation to existing employees, as well as increased headcount due to our continued growth.
Current report — wording carried from elsewhere
FRE General, Administrative and Other Expenses. For the six months ended June 30, 2026, FRE general, administrative and other expenses increased, primarily driven by occupancy and other office-related costs, and professional fees, reflecting our increased headcount due to our continued growth.
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Previous report — wording carried elsewhere
We operate three differentiated platforms at scale across Credit, Real Assets and GP Strategic Capital. AUM of $315 billion grew 15% year over year, with growth across each platform. Over the last twelve months, approximately 85% of our GAAP and FRE management fees were generated by Permanent Capital.