What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-01 compared with 2025-05-05 · 325 added, 175 removed, 488 unchanged (51% of the section changed)

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Business” in the Annual Report.

The following discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but

not limited to, those described in “Part II Other Information - Item 1A.

The following discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in “Part II Other Information - Item 1A.

Risk Factors.”

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2025 2024 2025 2024

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Please see “—GAAP Results of Operations Analysis” and “—Non-GAAP Analysis” for a detailed discussion of the underlying drivers of our results.

IPI Acquisition

On January 3, 2025, we completed the previously announced IPI Acquisition.

IPI is a digital infrastructure fund manager.

The completion of the IPI Acquisition further enhances Blue Owl’s digital infrastructure strategy as part of the firm’s Real Assets platform.

See Note 3 to our Financial Statements for additional information.

Internal Reorganization

On April 1, 2025, we completed the previously announced Internal Reorganization, pursuant to which, among other things, Blue Owl Carry became a wholly owned subsidiary of Blue Owl Holdings.

Following the Internal Reorganization, each unitholder of the Blue Owl Operating Partnerships who previously held an equal number of units in each of Blue Owl Holdings and Blue Owl Carry instead holds a single class of units in Blue Owl Holdings.

Assets Under Management

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$93.7 billion

GP Strategic Capital

$71.5 billion

$45.4 billion

GP Strategic Capital

$67.1 billion

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$61.4 billion

GP Minority Stakes

$40.0 billion

$19.2 billion

GP Minority Stakes

$63.4 billion

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$10.9 billion

GP Debt Financing

Real Estate Credit

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$14.5 billion

GP Debt Financing

Investment Grade Credit

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$17.1 billion

Professional Sports

Minority Stakes

Digital Infrastructure

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$11.6 billion

Professional Sports

Minority Stakes

Liquid Credit

All amounts shown as of March 31, 2025, totals may not sum due to rounding.

As of March 31, 2025, our AUM was $273.3 billion, which included $174.6 billion of FPAUM.

As of March 31, 2025, we have $23.4 billion in AUM not yet paying fees, providing $289 million of annualized management fees once deployed.

All amounts shown as of June 30, 2025, totals may not sum due to rounding.

As of June 30, 2025, our AUM was $284.1 billion, which included $177.5 billion of FPAUM.

As of June 30, 2025, we had $28.6 billion in AUM not yet paying fees, providing $379 million of annualized management fees once deployed.

See “—Assets Under Management” for additional information, including important information on how we define these metrics.

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Our business is impacted by conditions in the financial markets and economic conditions in the United States, and to a lesser extent, globally.

During the first quarter of 2025, global equity and debt markets experienced volatility driven by elevated inflation, economic slowdown and ongoing developments regarding international trade and economic policies.

We believe that our management-fee centric business model and base of Permanent Capital contribute to the resiliency of our earnings and the strength of our business growth, particularly during periods of market volatility.

As global economic and geopolitical uncertainty continues to ramp up into the second quarter, we believe our business model will prove to be stable and defensive, as we demonstrated in prior periods of enhanced uncertainty such as the COVID-19 pandemic and the subsequent spike in global inflation.

Likewise, we believe that our products are well-suited for this type of market environment and should demonstrate the benefits of income generation, inflation protection and structural downside protection through periods of dislocation.

During the second quarter of 2025, global equity and debt markets experienced significant volatility driven by the announcement of tariffs, which impacted investor expectations regarding economic growth and multi-national trade dynamics.

Our management-fee-centric business model and base of Permanent Capital supported the continued resiliency of our earnings and the strength of our business growth, much as we demonstrated in prior periods of enhanced uncertainty such as the COVID-19 pandemic and the subsequent spike in global inflation.

We believe that our products are well-suited for this type of market environment and should demonstrate the benefits of income generation, inflation protection and structural downside protection through periods of dislocation.

Over the past twelve months, approximately 86% and 87% of our GAAP and FRE management fees, respectively, were generated by Permanent Capital and the remainder was predominantly from long-dated capital, with no meaningful pressure on our asset base from redemptions.

We raised $10.7 billion of capital during the first quarter of 2025, with $6.7 billion of equity capital raised, resulting in $48.6 billion of total capital raised during the last twelve months, with $29.4 billion of equity capital raised.

Fundraising and capital deployment contributed to management fee growth of over 30% over the last twelve months, compared with the corresponding period.

We ended the first quarter of 2025 with substantial available capital to deploy, reporting approximately $23.4 billion of AUM not yet paying fees.

During the first quarter of 2025, industry M&A and capital markets activity was muted relative to the second half of 2024 as investors adjusted to a new Presidential administration and as headlines around tariffs introduced incremental uncertainty into the markets.

Broad loan market activity declined during the quarter as spreads widened and market volatility increased.

This market environment drove a moderation of industry-wide new issuance and substantially lessened the pace of refinancings, which played a significant role in volumes in 2024.

For Blue Owl, continued positive net deployment and ongoing capital raising were the primary drivers of higher Credit management fees and offset modest pressure to Part I Fees from the interest rate cuts in the fourth quarter of 2024.

The first quarter of 2025 was once again a very active quarter for direct lending deployment, with $12.8 billion of originations, bringing our last twelve month gross deployment to $55.8 billion and net funded deployment to $18.2 billion.

Blue Owl played a significant role in new deals and add-ons while refinancings declined, leading to net deployment of $4.5 billion during the quarter, more than double net deployment in the fourth quarter of 2024.

We were also active in deploying capital for our alternative credit strategy, where we have entered into forward flow agreements with two large consumer lending platforms, and across investment grade Credit for our insurance clients.

We continue to see attractive deployment opportunities for our GP Strategic Capital products, as capital needs across the private alternative asset management sector remain elevated, particularly in a more challenging fundraising and realization environment.

In addition to our leading franchise in larger-cap GP stakes, we recently launched a strategy intended to finance mid-cap alternative asset managers, further expanding our suite of solutions.

During the quarter, we raised incremental capital in our large-cap GP minority stakes strategy, primarily from the private wealth channel, and made the first investment out of the latest vintage of this strategy.

In Real Assets, we completed the IPI Acquisition on January 3, 2025, reflecting a significant step forward in Blue Owl’s presence in the digital infrastructure ecosystem.

In combination with the scaled capabilities in our Net Lease and Real Estate Credit businesses, Blue Owl is able to provide an even wider range of cross-asset solutions, with offerings across investment grade, core, and opportunistic categories.

We continue to actively deploy capital in our net lease strategy across a number of scaled opportunities, with our latest fund now over 87% committed despite having just held a final close in the first quarter of 2024.

Our pipeline of deployment opportunities remains robust, reflecting the very significant capital needs of corporations, and we continue to see strong demand from investors in these products.

We had a record fundraising quarter, bringing in $13.9 billion of new capital commitments during the second quarter of 2025, resulting in $54.6 billion of total capital raised during the last twelve months.

Fundraising, capital deployment, and acquisitions contributed to management fee growth of over 30% over the last twelve months, compared with the prior corresponding period.

We ended the second quarter of 2025 with substantial available capital to deploy, reporting approximately $28.6 billion of AUM not yet paying fees.

During the second quarter of 2025, industry M&A and capital markets activity remained relatively lackluster, further shining a spotlight on the importance of scale and incumbency in generating deployment opportunities during more challenged market landscapes.

While the market volatility in April and subsequent pause of capital markets did not extend into the back half of the second quarter, we believe it pushed out further the return of significant M&A activity, extending pipelines across the industry.

Despite these dynamics, the second quarter of 2025 was moderately active for direct lending deployment, with $9.7 billion of originations, bringing our last twelve month gross deployment to $46.9 billion and net funded deployment to $13.5 billion.

Much like in direct lending, we saw cross-platform network effects benefiting our alternative credit and investment grade credit strategies, demonstrating the expanding role that private lenders are being asked to play in the broader credit markets.

In alternative credit, we renewed and upsized a forward flow agreement with a large consumer lending platform and upsized a transaction with a U.K.-based lender that funds both U.S.

small businesses.

In Real Assets, we held the first close for the seventh vintage of our net lease strategy, less than 15 months after the final close of the prior vintage.

Deployment opportunities in net lease, and across the Real Assets platform broadly, remain robust, as we believe the large capital needs in the data center space are creating an important risk-reward setup.

This includes the largest data center project in the U.S., which Real Assets is financing.

These strategies present a differentiated proposition – offering the ability to fund the leading edge of innovation, but to do so through products and structures that are designed to be income-oriented and downside protected for our investors.

We continue to see attractive deployment opportunities for our GP Strategic Capital products, putting capital to work in the second investment out of the latest flagship GP minority stakes vintage.

Capital needs across the private alternative asset management sector remain elevated, particularly in a more challenging fundraising and realization environment.

Our GP minority stakes strategy stands out in this environment due to its demonstrated ability to generate return of capital, or distributions paid in, to investors.

Over the past year, our GP Strategic Capital flagship funds have distributed more than $2.9 billion in a market where return of capital has been scarce, situating our funds within the top quartile on this important metric.

We are continuing to closely monitor developments related to the macroeconomic factors that have contributed to market volatility, and to assess the impact of these factors on financial markets and on our business.

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In addition, our calculation of AUM includes amounts that are fee exempt (i.e., not subject to fees).

As of March 31, 2025, assets under management related to us, our executives and other employees totaled approximately $5.3 billion (including $3.0 billion related to accrued carried interest).

As of June 30, 2025, assets under management related to us, our executives and other employees totaled approximately $5.4 billion (including $2.9 billion related to accrued carried interest).

A portion of these assets under management are not charged fees.

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AUM not yet paying fees could provide $379 million of additional annualized management fees once deployed or upon the expiration of the relevant fee holidays.

All amounts shown as of March 31, 2025, totals may not sum due to rounding.

All amounts shown as of June 30, 2025, totals may not sum due to rounding.

Permanency and Duration of Assets Under Management

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Changes in these relative percentages will occur over time as the mix of products we offer changes.

For example, our Real Assets products have a higher concentration in what we refer to as “long-dated” funds, or funds in which the remaining contractual life is five years or more, may cause our percentage of management fees from Permanent Capital to decline.

For example, our Real Assets products have a higher concentration in what we refer to as “long-dated” funds, or funds in which the remaining contractual life is five years or more, which may cause our percentage of management fees from Permanent Capital to decline.

Changes in AUM

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

(dollars in millions) Credit GP Strategic Capital Real Assets Total Credit GP Strategic Capital Real Assets Total

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024

(dollars in millions) Credit Real Assets GP Strategic Capital Total Credit Real Assets GP Strategic Capital Total

Beginning Balance $ 139,239 $ 67,062 $ 66,968 $ 273,269 $ 91,289 $ 27,238 $ 55,793 $ 174,320

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Ending Balance $ 145,468 $ 71,486 $ 67,131 $ 284,085 $ 95,104 $ 39,208 $ 57,844 $ 192,156

The increase in AUM for the three months ended March 31, 2025 was driven by the following:

• $2.9 billion new capital raised in direct lending, primarily driven by continued private wealth fundraising in OCIC and OTIC, $0.4 billion new capital raised in liquid credit, as well as additional fundraising in products from recent acquisitions.

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

(dollars in millions) Credit Real Assets GP Strategic Capital Total Credit Real Assets GP Strategic Capital Total

Beginning Balance $ 135,710 $ 49,374 $ 66,035 $ 251,119 $ 84,632 $ 26,856 $ 54,199 $ 165,687

Acquisitions — 14,206 — 14,206 — 10,850 — 10,850

New capital raised 9,803 7,952 1,003 18,758 6,463 1,708 1,950 10,121

Change in debt 4,421 142 — 4,563 5,238 735 — 5,973

Distributions (5,918) (1,392) (900) (8,210) (2,918) (468) (729) (4,115)

Change in value / other 1,452 1,204 993 3,649 1,689 (473) 2,424 3,640

Ending Balance $ 145,468 $ 71,486 $ 67,131 $ 284,085 $ 95,104 $ 39,208 $ 57,844 $ 192,156

The increase in AUM for the six months ended June 30, 2025 was driven by the following:

• $7.2 billion new capital raised in direct lending products, primarily driven by continued private wealth fundraising in OCIC and OTIC, $1.0 billion in alternative credit products, $0.8 billion in strategic equity products and $0.4 billion in liquid credit products.

• $4.4 billion of additional net debt commitments, primarily in direct lending as we continue to opportunistically manage leverage in our BDCs.

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• $1.5 billion of overall appreciation across the platform, primarily in direct lending.

The increase in AUM for the six months ended June 30, 2025 was driven by $14.2 billion of products added in connection with the IPI Acquisition, as well as new capital raised of $8.0 billion across various products, primarily in our seventh flagship net lease product, Blue Owl Real Estate Net Lease Trust (“ORENT”), our net lease REIT, and Blue Owl Digital Infrastructure Fund III (“ODI III”), our digital infrastructure drawdown product, as well as additional fundraising in other recently launched products.

GP Strategic Capital.

The increase in AUM for the three months ended March 31, 2025 was driven by new capital raised of $0.6 billion, primarily in our sixth flagship minority equity stakes product and overall appreciation primarily in our GP minority stakes strategy of $0.6 billion.

The increase in AUM for the three months ended March 31, 2025 was driven by $14.2 billion of products added in connection with the IPI Acquisition, as well as new capital raised of $2.2 billion across various products, primarily Blue Owl Real Estate Net Lease Trust (“ORENT”), our real estate investment trust, and Blue Owl Digital Infrastructure Fund III (“ODI III”), our digital infrastructure drawdown product, and $1.4 billion of additional net debt commitments, primarily in Blue Owl Real Estate Fund VI (“OREF VI”).

The increase in AUM for the six months ended June 30, 2025 was driven by new capital raised of $1.0 billion, primarily in our sixth flagship minority equity stakes product and overall appreciation primarily in our GP minority stakes strategy of $1.0 billion, partially offset by distributions of $0.9 billion, primarily in our GP minority stakes strategy.

Changes in FPAUM

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

(dollars in millions) Credit GP Strategic Capital Real Assets Total Credit GP Strategic Capital Real Assets Total

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024

(dollars in millions) Credit Real Assets GP Strategic Capital Total Credit Real Assets GP Strategic Capital Total

Beginning Balance $ 92,890 $ 43,920 $ 37,822 $ 174,632 $ 58,779 $ 14,895 $ 31,763 $ 105,437

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Ending Balance $ 93,684 $ 45,366 $ 38,432 $ 177,482 $ 63,736 $ 25,025 $ 32,788 $ 121,549

The increase in FPAUM for the three months ended March 31, 2025 was driven by the following:

• $2.3 billion new capital raised in direct lending, primarily driven by continued private wealth fundraising in OCIC, OTIC, $0.4 billion new capital raised in alternative credit and $0.4 billion new capital raised in liquid credit.

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

(dollars in millions) Credit Real Assets GP Strategic Capital Total Credit Real Assets GP Strategic Capital Total

Beginning Balance $ 90,957 $ 31,500 $ 37,337 $ 159,794 $ 57,074 $ 14,547 $ 31,075 $ 102,696

Acquisitions — 10,723 — 10,723 — 9,430 — 9,430

New capital raised / deployed 6,034 3,860 1,211 11,105 7,850 1,858 1,713 11,421

Distributions (4,753) (1,333) (235) (6,321) (2,704) (468) — (3,172)

Change in value / other 1,446 616 119 2,181 1,516 (342) — 1,174

Ending Balance $ 93,684 $ 45,366 $ 38,432 $ 177,482 $ 63,736 $ 25,025 $ 32,788 $ 121,549

The increase in FPAUM for the six months ended June 30, 2025 was driven by the following:

• $4.5 billion new capital raised in direct lending products, primarily driven by continued private wealth fundraising in OCIC, $0.8 billion in strategic equity products, $0.5 billion in alternative credit products and $0.4 billion in liquid credit products.

• $4.8 billion offsetting decrease in distributions, which primarily relate to dividends paid from our BDCs and CLOs.

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• $1.4 billion of overall appreciation across the platform, primarily in direct lending.

The increase in FPAUM for the six months ended June 30, 2025 was driven by the $10.7 billion of products added in connection with the IPI Acquisition, as well as capital raised and deployed of $3.9 billion, primarily in ORENT and ODI III.

GP Strategic Capital.

The increase in FPAUM for the three months ended March 31, 2025 was driven by new capital raised of $0.6 billion, primarily in our sixth flagship minority equity stakes product.

The increase in FPAUM for the three months ended March 31, 2025 was driven by the $10.7 billion of products added in connection with the IPI Acquisition, as well as capital raised and deployed of $1.8 billion, primarily in ORENT and ODI III.

The increase in FPAUM for the six months ended June 30, 2025 was driven by new capital raised of $1.2 billion, primarily in our sixth flagship minority equity stakes product.

Product Performance

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The performance information of our products reflected is not indicative of Blue Owl’s performance.

Additionally, the nature of a product's performance itself is not considered in determining whether a product should be included in the tables below.

An investment in Blue Owl is not an investment in any of our products.

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Blue Owl Capital Corporation (1)(2) 2016 $ 21,497 $ 7,736 $ 7,736 $ 3,915 $ 7,739 $ 11,654 1.70x 1.51x 13.6 % 9.9 %

Blue Owl Capital Corporation III (1)(2) 2020 $ 5,056 $ 1,845 $ 1,842 $ 720 $ 1,839 $ 2,559 1.46x 1.39x 14.0 % 11.9 %

Blue Owl Credit Income Corp.

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(1)(4) 2018 $ 16,543 $ 7,707 $ 7,707 $ 1,121 $ 7,947 $ 9,068 1.23x 1.18x 12.0 % 9.0 %

Blue Owl Technology Finance Corp.

II (1)(4) 2021 $ 8,665 $ 4,184 $ 2,880 $ 397 $ 2,971 $ 3,368 1.23x 1.17x 16.1 % 11.5 %

Alternative Credit

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(2) On January 13, 2025, OBDC completed its merger with OBDE, with OBDC as the surviving company.

The information presented in the table above does not reflect the impact of the merger as it is presented on a quarter lag, see Note 1 for additional information.

(3) For the purposes of calculating Gross IRR, the expense support provided to the fund would be impacted when assuming a performance excluding management fees (including Part I Fees) and Part II Fees, and therefore is not meaningful for OBDC II, OCIC and OTIC.

(4) On March 24, 2025, OTF completed its merger with OTF II, with OTF as the surviving company.

The information presented in the table above does not reflect the impact of the merger as it is presented on a quarter lag, see Note 1 for additional information.

(5) Information presented in the Invested Capital through IRR columns for these vehicles is presented on a quarter lag.

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(10) Gross MoIC is calculated by adding total realized proceeds and unrealized values of a product’s investments and dividing by the total amount of invested capital.

Gross MoIC is calculated before giving effect to management fees (including Part I Fees) and Part II Fees, as applicable, but net of other expenses.

Gross MoIC is calculated before giving effect to management fees (including Part I Fees) and Part II Fees, as applicable, but net of all other expenses.

(11) Net MoIC measures the aggregate value generated by a product’s investments in absolute terms.

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An individual investor’s IRR may differ from the reported IRR based on the timing of capital transactions.

GP Strategic Capital

(dollars in millions) Year of

Inception AUM Capital

Raised Invested

(dollars in millions) Year of Inception AUM Capital Raised Invested Capital

(4) Unrealized

Value Gross (6) Net (7) Gross (8) Net (9)

GP Minority Stakes (1)

Blue Owl GP Stakes I 2011 $ 769 $ 1,284 $ 1,266 $ 807 $ 555 $ 1,362 1.22x 1.08x 3.5 % 1.1 %

Blue Owl GP Stakes II 2014 $ 2,925 $ 2,153 $ 1,963 $ 1,049 $ 2,139 $ 3,188 1.94x 1.62x 13.0 % 8.8 %

Blue Owl GP Stakes III 2015 $ 9,714 $ 5,318 $ 3,289 $ 4,127 $ 5,253 $ 9,380 3.54x 2.85x 29.0 % 22.5 %

Blue Owl GP Stakes IV 2018 $ 16,982 $ 9,041 $ 6,621 $ 5,719 $ 8,436 $ 14,155 2.62x 2.14x 57.2 % 37.7 %

Blue Owl GP Stakes V 2020 $ 14,355 $ 12,852 $ 6,808 $ 2,440 $ 5,662 $ 8,102 1.36x 1.19x 31.2 % 15.4 %

(1) Information presented in the Invested Capital through IRR columns for these vehicles is presented on a quarter lag and is exclusive of investments made by the related carried interest vehicles of the respective products.

(2) Invested capital includes capital calls.

Blue Owl Real Estate Fund IV 2017 $ 900 $ 1,250 $ 1,250 $ 1,502 $ 357 $ 1,859 1.62x 1.48x 19.5 % 16.0 %

Blue Owl Real Estate Net Lease Property Fund 2019 $ 7,507 $ 4,852 $ 4,205 $ 1,821 $ 3,312 $ 5,133 1.26x 1.22x 8.6 % 7.4 %

Blue Owl Real Estate Fund V 2020 $ 4,228 $ 2,500 $ 2,500 $ 1,045 $ 2,330 $ 3,375 1.46x 1.35x 16.8 % 13.1 %

Blue Owl Real Estate Net Lease Trust (1) 2022 $ 7,756 $ 5,821 $ 5,821 $ 285 $ 5,345 $ 5,630 NM NM NM NM

Blue Owl Real Estate Fund VI 2022 $ 7,315 $ 5,163 $ 2,115 $ 119 $ 2,328 $ 2,447 1.23x 1.16x 22.4 % 15.1 %

Digital Infrastructure

Blue Owl Digital Infrastructure Fund I(2) 2016 $ 2,117 $ 1,484 $ 1,730 $ 1,337 $ 1,850 $ 3,187 1.97x 1.84x 18.1 % 13.6 %

Blue Owl Digital Infrastructure Fund II(2) 2020 $ 5,258 $ 3,805 $ 3,494 $ 28 $ 4,919 $ 4,947 1.49x 1.42x 16.7 % 11.3 %

Blue Owl Digital Infrastructure Fund III(2) 2022 $ 7,654 $ 7,170 $ 1,653 $ — $ 2,137 $ 2,137 1.43x 1.29x 42.4 % 20.7 %

(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 return to be a useful measure of the overall investment performance for this product.

Total net return was 7.9%, 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.

(2) Information presented in the Invested Capital through IRR columns for these vehicles is presented on a quarter lag.

(3) Invested capital includes investments by the general partner, capital calls, dividends reinvested, recallable capital which has been reinvested and periodic investor closes, as applicable.

(4) Realized proceeds represent the sum of all cash distributions to investors.

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An individual investor’s IRR may differ from the reported IRR based on the timing of capital transactions.

(dollars in millions) Year of Inception AUM Capital Raised Invested Capital

GP Strategic Capital

(dollars in millions) Year of

Inception AUM Capital

Raised Invested

(3) Unrealized

Value Gross (5) Net (6) Gross (7) Net (8)

Blue Owl Real Estate Fund IV (1) 2017 $ 930 $ 1,250 $ 1,239 $ 1,477 $ 383 $ 1,860 1.66x 1.50x 20.5 % 16.8 %

Blue Owl Real Estate Net Lease Property Fund 2019 $ 7,155 $ 3,805 $ 4,205 $ 1,741 $ 3,367 $ 5,108 1.25x 1.21x 8.9 % 7.7 %

Blue Owl Real Estate Fund V (1) 2020 $ 4,282 $ 2,500 $ 2,500 $ 969 $ 2,329 $ 3,298 1.41x 1.32x 17.9 % 14.0 %

Blue Owl Real Estate Net Lease Trust (2) 2022 $ 6,995 $ 5,040 $ 4,683 $ 236 $ 4,667 $ 4,903 NM NM NM NM

Blue Owl Real Estate Fund VI (1) 2022 $ 10,143 $ 5,163 $ 2,115 $ 56 $ 2,040 $ 2,096 NM NM NM NM

Digital Infrastructure

Blue Owl Digital Infrastructure Fund I(1) 2016 $ 2,094 $ 1,484 $ 1,719 $ 1,324 $ 1,828 $ 3,152 1.96x 1.83x 18.5 % 13.9 %

Blue Owl Digital Infrastructure Fund II(1) 2020 $ 5,438 $ 3,805 $ 3,494 $ 28 $ 5,100 $ 5,128 1.55x 1.47x 20.4 % 14.0 %

(1) Information presented in the Invested Capital through IRR columns for these vehicles is presented on a quarter lag.

(2) 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 return to be a useful measure of the overall investment performance for this product.

Total net return was 8.0%, 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.

(3) Invested capital includes investments by the general partner, capital calls, dividends reinvested, recallable capital which has been reinvested and periodic investor closes, as applicable.

(4) Realized proceeds represent the sum of all cash distributions to all investors.

(5) Unrealized value represents the fund’s NAV.

GP Minority Stakes (1)

Blue Owl GP Stakes I 2011 $ 764 $ 1,284 $ 1,266 $ 807 $ 561 $ 1,368 1.23x 1.08x 3.2 % 1.1 %

Blue Owl GP Stakes II 2014 $ 2,776 $ 2,153 $ 1,963 $ 1,060 $ 2,099 $ 3,159 1.92x 1.61x 12.5 % 8.4 %

Blue Owl GP Stakes III 2015 $ 9,873 $ 5,318 $ 3,289 $ 4,290 $ 5,376 $ 9,666 3.65x 2.94x 28.9 % 22.5 %

Blue Owl GP Stakes IV 2018 $ 16,412 $ 9,041 $ 6,621 $ 5,719 $ 8,481 $ 14,200 2.64x 2.14x 55.2 % 36.0 %

Blue Owl GP Stakes V 2020 $ 14,593 $ 12,852 $ 7,381 $ 2,724 $ 6,146 $ 8,870 1.37x 1.20x 29.6 % 15.3 %

(2) Invested capital includes capital calls.

(3) Realized proceeds represent the sum of all cash distributions to investors.

(4) Unrealized value represents the product’s NAV.

There can be no assurance that unrealized values will be realized at the valuations indicated.

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Prima’s, KAM’s, Atalaya’s and IPI’s results of operations are included from June 6, 2024, July 1, 2024, September 30, 2024, and January 3, 2025, respectively.

Three Months Ended March 31, 2025, Compared to the Three Months Ended March 31, 2024

Three Months Ended March 31,

Three Months Ended June 30, 2025, Compared to the Three Months Ended June 30, 2024

Three Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

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See Note 9 to our Financial Statements for additional details on our GAAP management fees by strategy.

• Credit increased $83.6 million, including an increase in Part I Fees of $14.2 million, due to continued fundraising and deployment of capital primarily within new and existing Credit products, as well as management fees from products relating to the Atalaya Acquisition of $21.2 million and the KAM Acquisition of $16.7 million.

• Credit increased $79.7 million, including an increase in Part I Fees o f $8.3 million, primarily due to continued fundraising and deployment of capital within new and existing direct lending products.

Also contributing to the increase were management fees of $19.3 million from alternative credit products as a result of the Atalaya Acquisition that closed in the third quarter of 2024, as well as management fees of $16.2 million from investment grade credit products as a result of the KAM Acquisition that closed in the third quarter of 2024.

• Real Assets increased $63.2 million, primarily due to management fees of $48.2 million related to digital infrastructure products as a result of the IPI Acquisition that closed at the start of the first quarter of 2025.

Management fees from digital infrastructure included $15.7 million of catch-up fees, substantially all of which were paid as contingent consideration to the sellers of the IPI business.

Also contributing to the increase was continued fundraising and deployment of capital within new and existing Real Assets products, primarily ORENT and Blue Owl Real Estate Fund VI (“OREF VI”).

• GP Strategic Capital increased $14.7 million , primarily driven by fundraising in our sixth flagship minority equity stakes product.

There were no material catch-up fees in the first quarters of 2025 and 2024.

• Real Assets increased $68.1 million, attributable to continued fundraising and deployment of capital within new and existing Real Assets products, primarily OREF VI and ORENT, as well as management fees from products relating to the IPI Acquisition of $52.2 million, which includes $21.0 million of catch-up fees related to the IPI Acquisition, substantially all of which will be paid as contingent consideration to the sellers of the IPI business.

Additionally, the KAM Acquisition drove an increase of $5.5 million and the Prima Acquisition drove an increase of $4.9 million, as such transactions closed in the third and second quarters of 2024, respectively.

Administrative, Transaction and Other Fees .

The decrease in administrative, transaction and other fees was driven primarily by the following:

• $23.2 million decrease in fee income earned for services provided to portfolio companies, reflecting a decrease in the volume of transactions on which we earn such fees.

• $9.5 million increase in administrative fees, primarily due to a higher level of compensation expenses reimbursable from our products due to the growth in our products and business overall.

• $8.6 million increase in dealer manager revenues, primarily due to growth in the distribution of OCIC and ORENT.

Compensation and Benefits.

Compensation and benefits expenses increased primarily due to the following:

• $47.0 million increase, driven by higher compensation to existing employees, as well as increased headcount due to our continued growth .

• $35.1 million increase in amortization related to recurring annual equity grants, driven by additional grants made during the fourth quarter of 2024 in connection with year-end bonus compensation.

• $17.1 million increase in amortization related to acquisition-related equity compensation, primarily due to the Atalaya Earnouts, as the Atalaya Acquisition closed in the third quarter of 2024.

Amortization of Intangible Assets.

Amortization of intangible assets increased $32.7 million, primarily due to intangible assets acquired in connection with the IPI Acquisition, KAM Acquisition, Atalaya Acquisition and Prima Acquisition.

General, Administrative and Other Expenses .

General, administrative and other expenses increased primarily due to the following:

• $56.9 million increase related to the Services Agreement (as defined in Note 1 to our Financial Statements), which was entered into in January 2025.

See Note 10 to our Financial Statements for additional details on the Services Agreement.

• $8.6 million increase related to expense support, primarily related to recoveries related to a Credit product during the second quarter of 2024 versus expense support expenses for a Credit product during the second quarter of 2025.

• $8.1 million increase in dealer manager expenses, primarily due to growth in the distribution of OCIC and ORENT.

• $21.0 million increase in other operating expenses across various categories that were individually immaterial, primarily in office-related and other expenses driven by our continued growth.

Interest Expense .

The increase in interest expense was 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) and the issuance of the 6.250% Senior Notes due 2034 (the “2034 Notes”) in June 2024.

Change in Earnout Liability .

The change in the earnout liability for the current year period was primarily driven by the IPI Earnouts (as defined in Note 3 to our Financial Statements), as an increase in our share price drove an increase in the value of Common Units (as defined in Note 1 to our Financial Statements) delivered to sellers during the second quarter of 2025.

Income Tax Expense

The change in income tax expense was due to lower 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.

Net Income Attributable To Noncontrolling Interests

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 represent an approximately 58% and 66% weighted average economic interest in the Blue Owl Operating Group for the three months ended June 30, 2025 and 2024, 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.

Six Months Ended June 30, 2025, Compared to the Six Months Ended June 30, 2024

Six Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

Management fees, net (includes Part I Fees of $270,521 and $249,603)

$ 1,227,555 $ 913,652 $ 313,903

Administrative, transaction and other fees 151,746 147,303 4,443

Performance revenues 7,291 2,233 5,058

Total Revenues, Net 1,386,592 1,063,188 323,404

Compensation and benefits 652,240 451,894 200,346

Amortization of intangible assets 178,945 112,929 66,016

General, administrative and other expenses 378,831 170,206 208,625

Total Expenses 1,210,016 735,029 474,987

Net gains (losses) on investments (10,120) 5,797 (15,917)

Interest and dividend income 22,245 18,542 3,703

Interest expense (80,510) (55,199) (25,311)

Change in TRA liability (6,302) (1,959) (4,343)

Change in warrant liability — (11,650) 11,650

Change in earnout liability 22,947 (655) 23,602

Total Other Loss (51,740) (45,124) (6,616)

Income Before Income Taxes 124,836 283,035 (158,199)

Income tax expense 17,470 32,968 (15,498)

Consolidated Net Income 107,366 250,067 (142,701)

Net income attributable to noncontrolling interests (82,510) (191,031) 108,521

Net Income Attributable to Blue Owl Capital Inc.

$ 24,856 $ 59,036 $ (34,180)

Revenues, Net

Management Fees .

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.

• Credit increased $163.3 million, including an increase in Part I Fees of $22.5 million , primarily due to continued fundraising and deployment of capital within new and existing direct lending products.

Also contributing to the increase were management fees of $40.5 million from alternative credit products as a result of the Atalaya Acquisition that closed in the third quarter of 2024, as well as management fees of $32.9 million from investment grade credit products as a result of the KAM Acquisition that closed in the third quarter of 2024.

• Real Assets increased $131.3 million, primarily due to management fees of $100.5 million related to digital infrastructure products as a result of the IPI Acquisition that closed at the start of the first quarter of 2025.

Management fees from digital infrastructure included $35.1 million of catch-up fees, substantially all of which were paid as contingent consideration to the sellers of the IPI business.

Also contributing to the increase was continued fundraising and deployment of capital within new and existing Real Assets products, primarily ORENT and OREF VI.

• GP Strategic Capital increased $19.3 million, primarily driven by fundraising in our sixth flagship minority equity stakes product.

Administrative, Transaction and Other Fees .

The increase in administrative, transaction and other fees was driven primarily by the following:

• $10.0 million increase in dealer manager revenues, due primarily to growth in the distribution of OCIC and ORENT.

• $6.3 million increase in administrative fees, driven by a higher level of reimbursable compensation expenses due to growth of our products and business overall.

• $8.7 million offsetting decrease in fee income earned for services provided to portfolio companies, reflecting a decrease in average fees on transactions.

• $18.6 million increase in dealer manager revenues, primarily due to growth in the distribution of OCIC and ORENT.

• $17.8 million increase in administrative fees, driven by a higher level of compensation expenses reimbursable from our funds due to the growth in our products and business overall.

• $32.0 million offsetting decrease in fee income earned for services provided to portfolio companies, reflecting a decrease in the volume of transactions on which we earn such fees.

Compensation and Benefits.

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• $105.7 million increase, driven by higher compensation to existing employees, as well as increased headcount due to our continued growth.

• $23.1 million primarily due to an increase in our other recurring annual equity grants driven by additional grants made during the fourth quarter of 2024 in connection with year-end bonus compensation.

• $19.4 million increase related to acquisition-related compensation, primarily due to the Atalaya Earnouts related to the Atalaya Acquisition.

• $63.5 million increase in amortization related to recurring annual equity grants, driven by additional grants made during the fourth quarter of 2024 in connection with year-end bonus compensation.

• $31.2 million increase in amortization related to acquisition-related equity compensation, primarily due to the Atalaya Earnouts, as the Atalaya Acquisition closed in the third quarter of 2024.

See Note 3 to the financial statements in our Annual Report for additional information.

Amortization of Intangible Assets.

Amortization of intangible assets increased $33.3 million primarily due to an increase of $34.2 million related to intangible assets acquired in the IPI Acquisition, KAM Acquisition, Atalaya Acquisition and Prima Acquisition.

Amortization of intangible assets increased $66.0 million, primarily due to intangible assets acquired in connection with the IPI Acquisition, KAM Acquisition, Atalaya Acquisition and Prima Acquisition.

General, Administrative and Other Expenses .

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• $118.4 million increase related to the Services Agreement (as defined in Note 1 to our Financial Statements), which was entered into in January 2025.

See Note 10 to our Financial Statements for additional details.

• $17.0 million increase in Transaction Expenses, primarily due to the IPI Acquisition, as well as the mergers of OTF II into OTF and OBDC III into OBDC.

See Note 3 to our Financial Statements for additional details on our Transaction Expenses by acquisition.

• $10.0 million increase related to dealer manager expenses, due to growth in our products and business overall.

• $25.5 million increase in other operating expenses across various categories, driven by our continued growth.

Interest and Dividend Income.

The increase in interest and dividend income was driven by dividend income from the preferred equity investment made in April 2024 in Kuvare UK Holdings.

See Note 10 to our Financial Statements for additional details on the Services Agreement.

• $18.5 million increase related to dealer manager expenses, primarily due to growth in the distribution of OCIC and ORENT.

• $14.7 million increase in Transaction Expenses, primarily due to higher costs incurred in the current-year period related to the IPI Acquisition and BDC-related corporate actions, compared to costs incurred in the prior-year period related to the KAM Acquisition and Prima Acquisition.

• $8.5 million increase related to expense support for certain products that we manage.

• $48.5 million increase in other operating expenses across various categories that were individually immaterial, driven by our continued growth.

Net gains (losses) on investments .

The change in net gains (losses) on investments for the current year period was driven by the change in fair value of the preferred equity investment made in April 2024 in Kuvare UK Holdings.

Interest Expense .

The increase in interest expense was driven by higher average debt outstanding, reflecting the issuance of the 6.250% Senior Notes due 2034 (the “2034 Notes”) during the second quarter of 2024.

The increase in interest expense was driven by higher average debt outstanding, reflecting the issuance of the 2034 Notes in April 2024 and June 2024, and a higher average balance on our Revolving Credit Facility.

Change in Earnout Liability .

The change in the earnout liability for the current year period was primarily driven by the IPI Earnouts, as an increase in our share price drove an increase in the value of Common Units delivered to sellers during the second quarter of 2025.

Change in Warrant Liability .

The change in the warrant liability for the prior period was driven by the increase in the price of our Class A Shares.

All remaining outstanding warrants were exercised in November 2024.

Income Tax Expense

The decrease in income tax expense was due to lower pre-tax income in the current period as a result of the drivers discussed above.

The change in income tax expense was due to lower 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.

Net Income Attributable To Noncontrolling Interests

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 or loss due to the drivers discussed above.

The Common Units represented an approximately 59% weighted average economic interest in the Blue Owl Operating Group for the three months ended March 31, 2025.

The Common Units represented an approximately 59% and 65% weighted average economic interest in the Blue Owl Operating Group for the six months ended June 30, 2025 and 2024, 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.

Non-GAAP Analysis

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changes in TRA, warrant and earnout liabilities;

Transaction Expenses are expenses incurred in connection with the Business Combination (as defined in Note 1 to our Financial Statements) and other acquisitions and strategic transactions, including subsequent adjustments related to such transactions, that were not eligible to be netted against consideration or recognized as acquired assets and assumed liabilities in the relevant transactions.

Transaction expenses are expenses incurred in connection with acquisitions and strategic transactions, including subsequent adjustments related to such transactions, that were not eligible to be netted against consideration or recognized as acquired assets and assumed liabilities in the relevant transactions (“Transaction Expenses”).

FRE revenues also exclude the portion of IPI catch-up fees earned that relate to periods prior to the closing of the IPI Acquisition, as such amounts are payable as contingent consideration to the sellers.

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Management believes that FRE Margin can be useful as a supplemental performance measure used to make operating decisions and assess our core operating results.

Three Months Ended June 30, 2025, Compared to the Three Months Ended June 30, 2024

Fee-Related Earnings and Distributable Earnings Summary

Three Months Ended March 31,

(dollars in thousands) 2025 2024

Three Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

FRE revenues $ 646,050 $ 520,006 $ 126,044

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Distributable Earnings $ 323,014 $ 272,965 $ 50,049

Fee-Related Earnings and Distributable Earnings for the three months ended March 31, 2025 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.

Three Months Ended March 31,

(dollars in thousands) 2025 2024

Fee-Related Earnings and Distributable Earnings for the three months ended June 30, 2025 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.

Three Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

Credit Platform

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Management Fees, Net (1)

368,016 288,310 79,706

Administrative, transaction and other fees 22,942 41,703 (18,761)

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FRE Revenues - Credit Platform 391,077 330,201 60,876

Real Assets Platform

Net lease 47,514 40,853 6,661

Real estate credit 9,687 1,356 8,331

Digital infrastructure 33,892 — 33,892

Management Fees, Net (2)

91,093 42,209 48,884

Administrative, transaction and other fees 627 69 558

FRE Revenues - Real Assets Platform 91,720 42,278 49,442

GP Strategic Capital Platform

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Management Fees, Net (3)

161,043 145,895 15,148

Administrative, transaction and other fees 2,210 1,632 578

FRE Revenues - GP Strategic Capital Platform 163,253 147,527 15,726

Total FRE Revenues $ 646,050 $ 520,006 $ 126,044

(1) Includes $5.3 million and $0.5 million of catch-up fees for the three months ended June 30, 2025 and 2024, respectively.

(2) Includes $1.5 million of catch-up fees for the three months ended June 30, 2025.

There were no catch-up fees for the three months ended June 30, 2024.

(3) Includes $0.4 million and $2.5 million of catch-up fees for the three months ended June 30, 2025 and 2024, respectively.

FRE Management Fees .

For the three months ended June 30, 2025, the increase in FRE management fees was primarily driven by the following:

• Credit increased $79.7 million, including an increase in Part I Fees of $8.3 million, primarily due to continued fundraising and deployment of capital within new and existing direct lending products.

• Real Assets increased $48.9 million, primarily due to management fees of $33.9 million related to digital infrastructure products as a result of the IPI Acquisition that closed at the start of the first quarter of 2025.

Also contributing to the increase was continued fundraising and deployment of capital within new and existing Real Assets products, primarily ORENT and OREF VI.

• GP Strategic Capital increased $15.1 million, primarily driven by fundraising in our sixth flagship minority equity stakes product.

FRE Administrative, Transaction and Other Fees .

For the three months ended June 30, 2025, the decrease in FRE administrative, transaction and other fees was driven primarily by a decrease of $23.2 million in fee income earned for services provided to portfolio companies, reflecting a decrease in the volume of transactions on which we earn such fees.

Three Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

FRE compensation and benefits $ 188,942 $ 148,202 $ 40,740

FRE general, administrative and other expenses 88,859 65,673 23,186

Total FRE Expenses $ 277,801 $ 213,875 $ 63,926

FRE Compensation and Benefits.

For the three months ended June 30, 2025, FRE compensation and benefits expenses increased, driven by higher compensation to existing employees, as well as increased headcount due to our continued growth.

FRE General, Administrative and Other Expenses .

For the three months ended June 30, 2025, FRE general, administrative and other expenses increased, primarily driven by office-related and other expenses due to increased headcount and our continued growth.

Six Months Ended June 30, 2025, Compared to the Six Months Ended June 30, 2024

Fee-Related Earnings and Distributable Earnings Summary

Six Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

FRE revenues $ 1,266,242 $ 1,006,554 $ 259,688

FRE expenses 543,006 404,912 138,094

Net income allocated to noncontrolling interests included in Fee-Related Earnings (19,502) (15,469) (4,033)

Fee-Related Earnings $ 703,734 $ 586,173 $ 117,561

Distributable Earnings $ 585,530 $ 513,064 $ 72,466

Fee-Related Earnings and Distributable Earnings for the six months ended June 30, 2025 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.

Six Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

Credit Platform

Direct lending $ 613,820 $ 533,322 $ 80,498

Alternative credit 40,503 — 40,503

Investment grade credit 32,886 — 32,886

Liquid credit 13,035 13,535 (500)

Other 22,146 12,254 9,892

Management Fees, Net (1)

722,390 559,111 163,279

Administrative, transaction and other fees 40,492 65,978 (25,486)

FRE performance revenues 969 363 606

FRE Revenues - Credit Platform 763,851 625,452 138,399

Real Assets Platform

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Management Fees, Net (2)

181,224 83,543 97,681

Administrative, transaction and other fees 1,222 121 1,101

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FRE Revenues - Real Assets Platform 185,651 85,534 100,117

GP Strategic Capital Platform

GP minority stakes 302,712 279,275 23,437

GP debt financing 8,225 11,079 (2,854)

Professional sports minority stakes 1,584 1,964 (380)

Management Fees, Net (3)

312,521 292,318 20,203

Administrative, transaction and other fees 4,219 3,250 969

FRE Revenues - GP Strategic Capital Platform 316,740 295,568 21,172

Total FRE Revenues $ 1,266,242 $ 1,006,554 $ 259,688

(1) Includes $7.0 million and $0.5 million of catch-up fees for the six months ended June 30, 2025 and 2024, respectively.

(2) Includes $1.5 million of catch-up fees for the six months ended June 30, 2025.

There were no catch-up fees for the six months ended June 30, 2024.

(3) Includes $0.8 million and $2.5 million of catch-up fees for the six months ended June 30, 2025 and 2024, respectively.

FRE Management Fees .

The increase in FRE management fees was primarily driven by the following:

• Credit FRE management fees increased $83.6 million,including an increase in Part I Fees of $14.2 million, due to continued fundraising and deployment of capital primarily within new and existing Credit products, as well as management fees from products relating to the Atalaya Acquisition of $21.2 million and the KAM Acquisition of $16.7 million.

• GP Strategic Capital FRE management fees increased $5.1 million, primarily driven by fundraising in our sixth flagship minority equity stakes product.

There were no material catch-up fees in the first quarters of 2025 and 2024.

• Real Assets FRE management fees increased $48.8 million, attributable to continued fundraising and deployment of capital within new and existing Real Assets products, primarily OREF VI and ORENT, as well as management fees from products relating to the IPI Acquisition of $32.9 million, the KAM Acquisition of $5.5 million and the Prima Acquisition of $4.9 million.

For the six months ended June 30, 2025, the increase in FRE management fees was primarily driven by the following:

• Credit increased $163.3 million, including an increase in Part I Fees of $22.5 million, primarily due to continued fundraising and deployment of capital within new and existing direct lending products.

• Real Assets increased $97.7 million, primarily due to management fees of $66.8 million related to digital infrastructure products as a result of the IPI Acquisition that closed at the start of the first quarter of 2025.

Also contributing to the increase was continued fundraising and deployment of capital within new and existing Real Assets products, primarily ORENT and OREF VI.

• GP Strategic Capital increased $20.2 million, primarily driven by fundraising in our sixth flagship minority equity stakes product.

FRE Administrative, Transaction and Other Fees .

The decrease in FRE administrative, transaction and other fees was driven primarily by a decrease of $8.7 million in fee income earned for services provided to portfolio companies, reflecting a decrease in average fees on transactions.

Three Months Ended March 31,

(dollars in thousands) 2025 2024

For the six months ended June 30, 2025, the decrease in FRE administrative, transaction and other fees was driven primarily by a decrease of $32.0 million in fee income earned for services provided to portfolio companies, reflecting a decrease in the volume of transactions on which we earn such fees.

Six Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

FRE compensation and benefits $ 376,864 $ 286,868 $ 89,996

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FRE Compensation and Benefits.

FRE compensation and benefits expenses increased, driven by higher compensation to existing employees, as well as increased headcount due to our continued growth.

For the six months ended June 30, 2025, FRE compensation and benefits expenses increased, driven by higher compensation to existing employees, as well as increased headcount due to our continued growth.

FRE General, Administrative and Other Expenses .

The increase in FRE general, administrative and other expenses was driven by higher operating expenses across various categories, driven by our continued growth.

For the six months ended June 30, 2025, FRE general, administrative and other expenses increased, primarily driven by office-related and other expenses due to increased headcount and our continued growth.

Non-GAAP Reconciliations

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Please see “—Non-GAAP Analysis” for important information regarding these measures.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2025 2024 2025 2024

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Distributable Earnings $ 323,014 $ 272,965 $ 585,530 $ 513,064

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2025 2024 2025 2024

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FRE Revenues $ 646,050 $ 520,006 $ 1,266,242 $ 1,006,554

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2025 2024 2025 2024

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FRE Compensation and Benefits $ 188,942 $ 148,202 $ 376,864 $ 286,868

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2025 2024 2025 2024

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FRE General, Administrative and Other Expenses $ 88,859 $ 65,673 $ 166,142 $ 118,044

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2025 2024 2025 2024

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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.

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.

We ended the first quarter of 2025 with $97.6 million of cash and cash equivalents and approximately $1.0 billion available under our Revolving Credit Facility.

We ended the second quarter of 2025 with $117.6 million of cash and cash equivalents and approximately $0.9 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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• Pay income taxes and amounts due under the TRA;

• Pay dividends to holders of our Class A Shares, as well as make corresponding distributions to holders of Common Units and Incentive Units at the Blue Owl Operating Group level;

• Pay dividends to holders of our Class A Shares, as well as make corresponding distributions to holders of Common Units and Incentive Units (as defined in Note 1 to our Financial Statements) at the Blue Owl Operating Group level;

• Fund debt and equity investment commitments to existing or future products.

Debt Obligations

As of March 31, 2025, our long-term debt obligations consisted of $59.8 million aggregate principal amount of 7.397% Senior Notes due 2028 (the “2028 Notes”), $700.0 million aggregate principal amount of 3.125% Senior Notes due 2031 (the “2031 Notes”), $400.0 million aggregate principal amount of 4.375% Senior Notes due 2032 (the “2032 Notes”), $1.0 billion aggregate principal amount of the 2034 Notes and $350.0 million aggregate principal amount of 4.125% Senior Notes due 2051 (the “2051 Notes” and, collectively with the 2028 Notes, the 2031 Notes, the 2032 Notes and the 2034 Notes, the “Notes”).

We also had $730.0 million outstanding under our Revolving Credit Facility as of March 31, 2025.

As of June 30, 2025, our long-term debt obligations consisted of $59.8 million aggregate principal amount of 7.397% Senior Notes due 2028 (the “2028 Notes”), $700.0 million aggregate principal amount of 3.125% Senior Notes due 2031 (the “2031 Notes”), $400.0 million aggregate principal amount of 4.375% Senior Notes due 2032 (the “2032 Notes”), $1.0 billion aggregate principal amount of the 2034 Notes and $350.0 million aggregate principal amount of 4.125% Senior Notes due 2051 (the “2051 Notes” and, collectively with the 2028 Notes, the 2031 Notes, the 2032 Notes and the 2034 Notes, the “Notes”).

We also had $780.0 million outstanding under our Revolving Credit Facility as of June 30, 2025.

Of the amount borrowed under the Revolving Credit Facility as of June 30, 2025, $400.0 million was repaid subsequent to quarter end.

We expect to use cash on hand to pay interest and principal due on our financing arrangements over time, which would reduce amounts available for dividends and distributions to our stockholders.

We may choose to refinance all or a portion of any amounts outstanding on or prior to their respective maturity dates by issuing new debt, which could result in higher borrowing costs.

We may also choose to repay borrowing by using proceeds from the issuance of equity or other securities, which would dilute stockholders.

We may also choose to repay borrowings by using proceeds from the issuance of equity or other securities, which would dilute stockholders.

See Note 7 to our Financial Statements for additional information regarding our debt obligations.

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As discussed in Note 8 to our Financial Statements, we made a payment under the TRA and may in the future be required to make additional payments.

As of March 31, 2025, assuming no material changes in the relevant tax law and that we generate sufficient taxable income to realize the full tax benefit of the increased amortization resulting from the increase in tax basis of certain Blue Owl Operating Group assets, we expect to pay approximately $1.6 billion under the TRA (such amount excludes the adjustment to fair value for the portion classified as contingent consideration).

As of June 30, 2025, assuming no material changes in the relevant tax law and that we generate sufficient taxable income to realize the full tax benefit of the increased amortization resulting from the increase in tax basis of certain Blue Owl Operating Group assets, we expect to pay approximately $1.7 billion under the TRA (such amount excludes the adjustment to fair value for the portion classified as contingent consideration).

Future cash savings and related payments under the TRA in respect of subsequent exchanges of Common Units for Class A or B Shares would be in addition to these amounts.

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The 2025 Program may be changed, suspended or discontinued at any time and will terminate upon the earlier of (i) the purchase of all shares available under the 2025 Program and (ii) February 28, 2027.

We repurchased 114,228 Class A Shares under the 2025 Program during the three and six months ended June 30, 2025.

Additionally, pursuant to the terms of our RSU agreements, upon the vesting of RSUs to employees, we may net settle awards to satisfy employee tax withholding obligations.

In such instances, we cancel a number of RSUs equivalent in value to the amount of tax withholding payments that we make on behalf of employees out of available cash.

During the three months ended March 31, 2025 and 2024, 2,230,158 RSUs with a fair value of $53.4 million and 969,149 RSUs with a fair value of $17.4 million, respectively, were withheld to satisfy tax withholding obligations.

During the three and six months ended June 30, 2025, 19,611 RSUs with a fair value of $0.4 million and 2,249,769 RSUs with a fair value of $53,782, respectively, were withheld to satisfy tax withholding obligations.

During the three and six months ended June 30, 2024, 31,669 RSUs with a fair value of $0.6 million and 1,000,818 RSUs with a fair value of $18.1 million, respectively, were withheld to satisfy tax withholding obligations.

Earnout Liability

The KAM Earnouts and the Wellfleet Earnouts (each defined in Note 3 in our Annual Report) are classified as liabilities in our consolidated statements of financial position and represent the fair value of the obligation to make future cash payments if the respective triggering events occur.

The KAM Earnouts and Wellfleet Earnouts (each defined in Note 3 to the financial statements in our Annual Report) are classified as liabilities in our consolidated statements of financial position and represent the fair value of the obligation to make future cash payments if the respective triggering events occur.

In April 2025, the final tranche of the Wellfleet Earnouts was settled in cash.

As we approach each triggering event, we generally would expect the respective liabilities to increase due to the passage of time and meeting certain revenue thresholds, which would result in mark-to-market losses being recognized in our consolidated statements of operations.

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For additional information on these earnout liabilities, see Note 1 and Note 3 to the Financial Statements in our Annual Report.

The Prima Earnouts and Atalaya Earnouts (each defined in Note 3 in our Annual Report) are payable in Class A Shares or Common Units.

The Prima Earnouts and Atalaya Earnouts (each defined in Note 3 to the financial statements in our Annual Report) are payable in Class A Shares or Common Units.

As we approach each triggering event, we generally would expect the respective liabilities to increase due to the passage of time and the achievement of certain revenue thresholds, which would result in mark-to-market losses being recognized in our consolidated statements of operations.

Additionally, as of March 31, 2025, we have accrued an earnout liability related to the IPI Acquisition.

This liability is contingent upon additional commitments to the Blue Owl Digital Infrastructure Fund III and is based on the size of these commitments.

A portion of this liability pertains to the pro-rated catch-up management fees earned with each subsequent close.

These fees are payable in cash and are expected to be paid to the sellers later in 2025, after we have collected the catch-up fees from the fund.

The remaining earnout liability represents the estimated fair value of additional Common Units we anticipate issuing to the sellers.

The value of these Common Units is driven by the size of commitments to the Blue Owl Digital Infrastructure Fund III and such Common Units are expected to be issued later in 2025, following the final closing of the fund.

The earnout liability related to the IPI Acquisition, including the IPI Subsequent Payment (as defined in Note 3 to our Financial Statements), was settled during the second quarter of 2025.

For additional information on these earnout liabilities, see Note 1 and Note 3 to the Financial Statements.

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Starting in 2023, we moved to a fixed quarterly dividend based on our expected annual Distributable Earnings for the current fiscal year, which will be reassessed on an annual basis.

For the first quarter of 2025, we declared a dividend of $0.225 to holders of record as of the close of business on May 14, 2025, which will be paid on May 28, 2025.

For the second quarter of 2025, we declared a dividend of $0.225 to holders of record as of the close of business on August 14, 2025, which will be paid on August 28, 2025.

We set the target annual dividend for fiscal year 2025 at $0.90 per Class A Share (representing a fixed quarterly dividend of $0.225 per Class A Share), subject to the approval of the Board each quarter on or prior to each quarterly distribution date and in compliance with Delaware law, and such dividends are paid following the end of each quarter.

We intend to increase our fixed dividend each year, in line with our expected growth in Distributable Earnings.

When setting our dividend, our Board considers Blue Owl’s share of Distributable Earnings, and makes adjustments as necessary or appropriate to provide for the conduct of our business, to make appropriate investments in our business and products, including funding of GP commitments and potential strategic transactions;

When setting our dividend, our Board considers Blue Owl’s share of Distributable Earnings, and makes adjustments as necessary or appropriate to provide for the conduct of our business;

to make appropriate investments in our business and products, including funding of GP commitments and potential strategic transactions;

to provide for future cash requirements such as TRA and tax-related payments, operating reserves, fixed asset purchases, purchases under the Company’s share repurchase program and dividends to stockholders for any ensuing quarter;

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federal, New York State and New York City income tax rates prescribed for an individual or corporate resident in New York City (taking into account certain assumptions set forth in the partnership agreement).

Tax Distributions will be made only to the extent distributions from the Blue Owl Holdings for the relevant year were otherwise insufficient to cover the estimated assumed tax liabilities.

Tax Distributions will be made only to the extent distributions from Blue Owl Holdings for the relevant year were otherwise insufficient to cover the estimated assumed tax liabilities.

Holders of our Class A and B Shares may not always receive distributions or may receive lower distributions on a per share basis at a time when we, indirectly through Blue Owl GP, and holders of our Common Units are receiving distributions on their interests, as distributions to the Registrant and Blue Owl GP may be used to settle tax and TRA liabilities, if any, and other obligations.

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Cash Flows Analysis

Three Months Ended March 31,

Six Months Ended June 30,

(dollars in thousands) 2025 2024 $ Change

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One of our largest operating cash outflows generally relates to year-end bonuses, which are generally paid out during the first quarter of the year following the year in which the expense was incurred (e.g., 2024 year-end bonuses are paid out during the first quarter of 2025).

Net cash flows from operating activities decreased from the prior year period due to higher operating expenses, in particular higher bonus payments made during the first quarter related to the prior year, partially offset by higher management fees.

Included in the three months ended March 31, 2024 were the cash outflows of the portion of the Second Oak Street Earnout classified as contingent consideration in excess of the acquisition-date fair value that settled in January 2024;

Net cash flows from operating activities increased from the prior year period due to higher management fees, partially offset by higher operating expenses, in particular higher bonus payments made during the first quarter related to the prior year.

Included in the six months ended June 30, 2024 were the cash outflows of the portion of the Second Oak Street Earnout classified as contingent consideration in excess of the acquisition-date fair value that settled in January 2024;

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.

Investing Activities.

Cash flows from investing activities for the three months ended March 31, 2025 were primarily related to cash consideration paid in connection with the IPI Acquisition, investments in our products and cash outflows for office space-related leasehold improvements.

Cash flows from investing activities for the six months ended June 30, 2025 were primarily related to cash consideration paid in connection with the IPI Acquisition, investments in our products and cash outflows for office space-related leasehold improvements.

In addition, investment activities included inflows from redemptions from a product we manage.

Cash flows from investing activities for the three months ended March 31, 2024 were primarily related to purchases of investments in our products and cash outflows for office space-related leasehold improvements.

In addition, investment activities included inflows from repayments on our interest-bearing revolving promissory note receivable from a product we manage.

Cash flows from investing activities for the six months ended June 30, 2024 were primarily related to a preferred equity investment in Kuvare UK Holdings, investments in our products and cash outflows for office space-related leasehold improvements.

In addition, investment activities included inflows from repayments on our interest-bearing revolving promissory note receivable from a product we manage that was fully repaid.

Financing Activities.

Cash flows from financing activities for the three months ended March 31, 2025 were primarily related to borrowing and repayment activity under our Revolving Credit Facility, which borrowings were used, in part, to finance the IPI Acquisition.

In addition, we had distributions on our Common Units (noncontrolling interests) and dividends on our Class A Shares.

Cash flows from financing activities for the three months ended March 31, 2024 were primarily related to borrowing and repayment activity under our Revolving Credit Facility,which borrowings were used to finance working capital needs and general capital purposes.

Cash flows from financing activities for the six months ended June 30, 2025 were primarily related to borrowing and repayment activity under our Revolving Credit Facility, which borrowings were used, in part, to finance the IPI Acquisition.

In addition, we had distributions on our Common Units (noncontrolling interests), dividends on our Class A Shares, as well as amounts paid under the TRA.

Included in the six months ended June 30, 2025, was the cash portion of the IPI Subsequent Payment (as defined in Note 3 to our Financial Statements) that was settled in the second quarter of 2025, which amount represented catch-up fees earned from ODI III that were passed on to the IPI sellers.

Cash flows from financing activities for the six months ended June 30, 2024 were primarily related to the issuance of our 2034 Notes and borrowing and repayment activity under our Revolving Credit Facility, which borrowings were used to finance the Prima Acquisition that closed on June 6, 2024 and the KAM Acquisition that closed on July 1, 2024.

In addition, we had distributions on our Common Units (noncontrolling interests) and dividends on our Class A Shares.

Included in the three months ended March 31, 2024, was a portion of the cash outflows related to the Second Oak Street Earnout classified as contingent consideration that settled in January 2024, as discussed above, as well as amounts paid under the TRA.

Included in the six months ended June 30, 2024 was a portion of the cash outflows related to the Second Oak Street Earnout classified as contingent consideration that settled in January 2024, as discussed above, as well as amounts paid under the TRA.

Critical Accounting Estimates

We prepare our Financial Statements in accordance with U.S.

We prepare our Financial Statements in accordance with GAAP.

In applying many of these accounting principles, we make estimates that affect the reported amounts of assets, liabilities, revenues and expenses in the Financial Statements.

We base our estimates on historical experience and other factors that we believe are reasonable under the circumstances.

These estimates, however, are subjective and subject to change, and actual results may differ materially from our current estimates due to the inherent nature of these estimates, including geopolitical, macro-environmental and other uncertainty.

For a summary of our significant accounting policies, see Note 2 to our Financial Statements.

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We then apply a discount rate that we believe is appropriate given the nature of and expected timing of payments of the liability.

A decrease in the discount rate assumption would result in an increase in the fair value estimate of the liability, which would have a correspondingly negative impact on our GAAP results of operations.

A decrease in the discount rate assumption would result in an increase in the fair value estimate of the liability, which would have a corresponding negative impact on our GAAP results of operations.

However, payments under the TRA are ultimately only made to the extent we realize the offsetting cash savings on our income taxes due to the tax goodwill and other intangibles deduction.

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Earnout Liability

The fair value of our earnout liability was determined using various significant unobservable inputs, including a discount rate and our best estimate of expected volatility and expected holding periods.

The fair value of our earnout liability was determined using various significant unobservable inputs, including a discount rate and our best estimate of expected revenues, volatility and holding periods.

Changes in the estimated fair value of this liability may have a material impact on our results of operations in any given period, as any increase in this liability has a corresponding negative impact on our GAAP results of operations.

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The valuation of the preferred equity investment considers our best estimate of future cash flow, including timing of repayment, which is discounted considering the risk free rate and credit assumptions related to the underlying issuer.

A decrease in the expected cash flows or increase in the discount rate assumptions would result in a decrease in the fair value of the preferred equity investment, which would have a correspondingly negative impact on our GAAP results of operations.

A decrease in the expected cash flows or increase in the discount rate assumptions would result in a decrease in the fair value of the preferred equity investment, which would have a corresponding negative impact on our GAAP results of operations.

These assumptions require a significant amount of judgment and could have a material impact on the valuation.

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Equity-based Compensation

The grant-date fair values of our RSU and Incentive Unit (each defined in Note 1 to our Financial Statements) grants, as well as the compensation-classified earnouts, are generally determined using our Class A Share price on the grant date, adjusted for the lack of dividend participation during the vesting period, and the application of a discount for lack of marketability for grants subject to post-vesting transfer restrictions.

The grant-date fair values of our RSU and Incentive Unit grants, as well as the compensation-classified earnouts, are generally determined using our Class A Share price on the grant date, adjusted for the lack of dividend participation during the vesting period, and the application of a discount for lack of marketability for grants subject to post-vesting transfer restrictions.

The higher these discounts, the lower the compensation expense taken over time for these grants.

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Changes in estimated useful lives could result in significant changes to the amount of amortization expense recognized in future periods.

Variable Interest Entities

The determination of whether to consolidate a variable interest entity (“VIE”) under GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interests.

Consolidation

We consolidate entities based on either a variable interest model or voting interest model.

The determination of whether an entity is a variable interest entity (“VIE”) and if the entity should be consolidated under GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interests.

To make these judgments, we conduct an analysis, on a case-by-case basis, of whether we are the primary beneficiary and are therefore required to consolidate an entity.

We continually reconsider whether we should consolidate a VIE.

Upon the occurrence of certain events, such as modifications to organizational documents and investment management agreements of our products, we will reconsider our conclusion regarding the status of an entity as a VIE.

Our judgement when analyzing the status of an entity and whether we consolidate an entity could have a material impact on individual line items within our Financial Statements, as a change in our conclusion would have the effect of grossing up the assets, liabilities, revenues and expenses of the entity being evaluated.

Upon the occurrence of certain events, such as a change in investment amount and modifications to organizational documents and investment management agreements of our products, we will reconsider our conclusion regarding the status of an entity as a VIE.

Our judgement when analyzing the status of an entity and whether we consolidate an entity could have a material impact on individual line items within our

Financial Statements, as a change in our conclusion would have the effect of grossing up the assets, liabilities, revenues and expenses of the entity being evaluated.

In light of the relatively insignificant direct and indirect investments into our products, the likelihood of a reasonable change in our estimation and judgement would likely not result in a change in our conclusions to consolidate or not consolidate any VIEs to which we have exposure.

Impact of Changes in Accounting on Recent and Future Trends

We believe that none of the changes to GAAP that went into effect during the three months ended March 31, 2025, or that have been issued but that we have not yet adopted, are expected to materially impact our future trends.

We believe that none of the changes to GAAP that went into effect during the six months ended June 30, 2025, or that have been issued but that we have not yet adopted, are expected to materially impact our future trends.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis