OWL

Blue Owl is a fast-growing alternative asset manager (credit, GP stakes, real assets) whose GAAP statements badly understate the economics. Revenue grew 25.0% to $2.87B and operating cash flow rose 25.7% to $1.26B, yet reported net income was only $78.8M and diluted EPS just $0.10 — depressed by the Up-C structure, intangible amortization and non-controlling interests. The MD&A's own non-GAAP measures are the truer lens: Fee-Related Earnings of $1,496.5M (up from $1,253.4M) and Distributable Earnings of $1,309,072 thousand ($1.31B, up from $1.13B). That cash-fee engine, not the $0.10 of GAAP EPS, is what the $547M of dividends (+48.4%) is paid from.

The franchise quality is high. AUM reached $307.4 billion with $187.7B fee-paying, and ~84-85% of management fees come from permanent capital with no meaningful pressure from redemptions. 2025 was a record fundraising year — $56.3B of total capital raised, including $17.3B in Q4 alone — with $28.4 billion of AUM not yet paying fees that management says will generate roughly $326 million of annualized fees once deployed. Real Assets (digital infrastructure / data centers, net lease) raised over $17B, nearly 3.5x 2024, riding AI/cloud demand. This is a structurally growing, sticky fee base.