Blue Owl Capital Inc.

Blue Owl reported second-quarter 2026 FRE of 25¢ per share and DE of 22¢ per share, both up 9% versus the second quarter of 2025. Management fees grew 8% excluding fee offsets, and FRE and DE each grew 9% year over year. FRE margin was 58.5%, modestly above first quarter and 2025 levels. The company raised $7.8 billion of total capital in the quarter and $50.5 billion over the last 12 months. AUM not yet paying fees rose to $31 billion, which management said represents about $380 million of expected annual management fees once deployed. For 2026, management reiterated it thinks it can beat visible alpha consensus, and specifically referenced prior figures of FRE per share of $1.02 and DE per share of $0.89 as levels it thinks it can exceed.

Marc Lipschultz emphasized diversification as the key theme, saying Blue Owl’s growth is increasingly broad-based across products and geographies rather than dependent on one segment. He highlighted strong performance across direct lending, real assets, alternative credit and GP stakes, and repeatedly framed the quarter as evidence of resilience amid private credit and wealth-channel volatility. His tone was confident and upbeat, with a focus on the firm’s long-term durability, product expansion and ability to keep growing through changing market backdrops.

Alan Kirshenbaum focused on the financial bridge to future growth: FRE was 25¢ per share and DE was 22¢ per share, both up 9% year over year, while FRE margin was 58.5%. He pointed to $31 billion of AUM not yet paying fees, which he translated into about $380 million of future annual management fees once deployed, and said $3 billion of that queue had been added since year-end. He also said the company raised $7.8 billion in the quarter, with about 75% of that in institutional capital, and reiterated 2026 stock-based compensation guidance of $365 million for the “equity based compensation other” line. He said management fee growth should build in Q3 and Q4 and be higher in 2027 than in 2026.

Analysts focused on the path to beating 2026 guidance, the source of future fee growth, and whether Blue Owl should launch a more traditional drawdown credit fund. Management said growth should come from GP stakes, net lease deployment, and the next digital infrastructure vintage, with fee growth building over the next two quarters. On the retail side, management said redemption pressure in nontraded BDCs has eased, wealth inflows are improving, and they are open to launching a traditional drawdown structure if that is where investors want to allocate capital. Questions also targeted data center cap rates and tenant credit risk; management said cap rates remain strong and its business is overwhelmingly investment-grade in nature.