Blue Owl Q2 Profit Rises, AUM Hits $319B Amid Private Credit Scrutiny
OWL sits 20% above its 52-week low of $7.95.
Summary
Blue Owl Capital reported Q2 adjusted distributable EPS of 22 cents, up from 21 cents a year ago, with AUM reaching $319 billion, a 12% YoY increase. Fee-related earnings rose to 25 cents per share from 23 cents. However, new capital commitments fell sharply to $7.8 billion from $13.9 billion a year earlier, and private wealth inflows dropped to $1.7 billion from $4.4 billion, reflecting ongoing redemption pressures in private credit. The stock was volatile post-release, last down 1% premarket. This follows a challenging period marked by a $1.3 billion short interest, a major shareholder sale filing, and maintained 5% withdrawal limits on two private credit funds. The earnings show resilient fee generation but weakening fundraising momentum, a key metric for future growth. The completion of the Sila Realty Trust acquisition in early July adds to the real assets platform, but the direct lending business remains under scrutiny with originations of $3.6 billion and deployment of only $600 million in the quarter.
At the time of this announcement, OWL was trading at $9.51 on NYSE in the Finance sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $7.95 to $20.58. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.