OWL 10-K & 10-Q changes, risk factors and insider trading

•Management fees and other fees comprise thea substantial majority of our revenues and a reduction in such fees could have an adverse effect on our results of operations and the level of cash available for distributions to our stockholders.

•Our growth depends in large part on our ability to raise new and successor products. If we were unable to raise such products, the growth of our FPAUM and management fees, and ability to deploy capital into investments, earning the potential for performance income,investments would slow or decrease.

•Intense competition among alternative asset managers may make fundraising and the deployment of capital more difficult, thereby limiting our ability to grow or maintain our FPAUM. Such competitionCompetition may be amplified by changes in productinvestors investorallocating allocationsincreased amounts of capital away from alternative asset managers.

•Valuation methodologies for certain assets of our products can be opensubject to subjectivity, whichand our valuation of an asset may affectdiffer materially from the managementvalue feesultimately or performance income that our business receives.realized.

•We are vulnerable to an increased number of investors seeking to participate in share redemptionrepurchase programs or tender offers of our non-traded products.

•The services, products and investment strategies we currently or in the future may offer or pursue may expose us to specificgreater market, tax, regulatory and other risks.

•The anticipated benefits of recent or future development opportunities, acquisitions or joint ventures may not be realized or may take longer than expected to realize.

•Cybersecurity risks and cyber data security incidents could adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information and confidential information in our possession and damage to our business relationships.

•We depend on our senior management team, senior investment professionals and other key personnel to provide their services to us, our investment advisersus and our products.

•EmployeeEmployee, former employee or third-party service provider misconduct could harm us by impairing our ability to attract and retain product investors and subjecting us to significant legal liability, regulatory scrutiny and reputational harm.

•Our entitlement and that of certain Principals and employees to receive performance revenuesincome from certain of our products may create an incentive for us to make more decisions, including more speculative investments and determinations on behalf of our products, than would be the case in the absence of such performance income.

•We, our products and our products’ portfolio companies are subject to increasing scrutiny from certain investors, third party assessors, our stockholdersstockholders, regulators and other stakeholders with respect to ESG-related topics.

•Blue Owl has elected to be treated as,as a “controlled company” within the meaning of the NYSE listing standards and, as a result, our stockholders may not have certain corporate governance protections that are available to stockholders of companies that are not controlled companies.

•The multi-class structure of ourBlue Owl common stock has the effect of concentrating voting power with the Principals, which limits an investor’s ability to influence the outcome of important transactions, including a change in control.

Our business is affected by conditions and trends in the global financial markets and the global economic and political climate relating to, among other things, fluctuations in interest rates, the availability and cost of credit, future increases in inflation, economic uncertainty, changes in laws (including laws and regulations relating to our taxation, taxation of our clientsinvestors and applicable to alternative asset managers), trade policies, commodity prices, tariffs,tariffs (including retaliatory tariffs), currency exchange rates and controls, political elections and administration transitions, and national and international political events (including contract terminations or funding pauses, government agency closures, prolonged government shutdowns, wars and other forms of conflict, terrorist acts, and security operations), work stoppages, labor shortages and labor disputes, supply chain disruptions and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health pandemics. TheChanges United States has recently enacted and proposed to enact significant new tariffs. Additionally, the new Presidential administration has directed various federal agencies to further evaluate key aspects of U.S. trade policy and there has been ongoing discussion and commentary regarding potential significant changes to U.S.in trade policies, treatiesincluding andthe tariffs.imposition of new tariffs or increases in existing tariffs between the United States, Mexico, Canada, China or other countries, or reactionary measures in response thereto including retaliatory tariffs, legal challenges, or currency manipulation, could adversely affect the market conditions in which we operate. These factors are outside of our control and may affect the level and volatility of credit and securities prices and the liquidity and value of fund investments, and we and our products may not be able to or may choose not to manage our exposure to these conditions. Global financial markets have experienced heightened volatility in recent periods, including as a result of economic and political events in or affecting the world’s major economies, such as the ongoing wars and conflicts between Russia and Ukraine, as well as political and social unrest in the Middle East and North Africa region. Concerns over economic recession, future increases in inflation, interest rate volatility, fluctuations in oil and gas prices resulting from global production and demand levels and geopolitical tension, have exacerbated market volatility. Additionally,Market volatility has been further exacerbated by social unrestunrest, changes regarding immigration and work permit policies and other political and security concerns mayboth notin abate,the mayUnited worsenStates and couldacross spread.various Ourinternational regions. Due to interrelationships within the global financial markets, our business and financial performance couldmay be adversely affected by political,such economic or related developmentsissues both within and outside of regions experiencing ongoing conflicts because of interrelationships within the globaldirectly financialaffected markets.regions.

Fluctuations in interest rates and futureFuture increases in inflation may adversely affect the business, results of operations and financial condition of our products and their portfolio companies.

Certain of our products and their portfolio companies operate in industries that have been impacted by inflation. RecentOngoing inflationary pressures have increased the costs of labor, energy and raw materials and have adversely affected consumer spending, economic growth and our products’ portfolio companies’ operations. If such portfolio companies are unable to pass any increases in the costs of their operations along to their customers, it could adversely affect their operating results. Such conditions would increase the risk of default on their obligations as a borrower. In addition, any projected future decreases in the operating results of our products’ portfolio companies due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our products’ investments could result in future realized or unrealized losses.

Fluctuations in interest rates could have a dampening effect on overall economic activity, the financial condition of our customers and the financial condition of the end customers who ultimately create demand for the capital we supply, all of which could negatively affect demand for our products’ capital. In addition, lower interest rates may increase prepayment risk for our clients’ investments in assets with higher interest rates. The Federal Reserve decreased the federal funds rate twicethree times in 2024.2025. Although the Federal Reserve has signaled the potential for additional federal funds rate cuts, there remains uncertainty around the rate and timing of decreases, including as a result of the transition to the new U.S presidential administration.decreases. Uncertainty surrounding future Federal Reserve actions may have a material effect on our business making it particularly difficult for us to obtain financing at attractive rates, impacting our ability to execute on our growth strategies or future acquisitions.

The investment advisory and management agreements we have with each of our BDCsRegulated Products categorize the fees we receive as: (a) base management fees, which are paid quarterly and generally increase or decrease based on the average fair value of our BDC’sRegulated Products’ gross assets (excludingexcluding, in certain cases, cash and cash equivalents) or average fair value of gross assets (excluding cash) plus undrawn commitments, (b) Part I Fees and (c) in the case of our BDCs, Part II Fees. We classify the Part I Fees as management fees because they are predictable and recurring in nature, not subject to contingent repayment and generally cash-settled each quarter. If any of our BDCs’Regulated Products’ gross assets or net investment income (before Part I Fees and Part II Fees) were to decline significantly for any reason, including, without limitation, due to fair value accounting requirements, the poor performance of its investmentsinvestments, an increase in the number of investors participating in tender offers, or the inability or increased cost to obtain or maintain borrowings for each of our BDCs,Regulated Products, the amount of the fees we receive from our BDCs,Regulated Products, including the base management fee and the Part I Fees, would also decline significantly, which could have an adverse effect on our revenues and results of operations. Our investment advisory and management agreements typically provide that the rates at which we earn advisory fees from certain of our BDCs increase after such BDCs are publicly listed (where before the listing the advisory fees typically are a reduced base management fee with a reduced or no Part I or II Fees). If these BDCs do not become publicly listed on anticipated timeframes or at all for any reason, including the NAV performance of our BDCs, Blue Owl will not benefit from this increase, and those BDCs may need to return their capital to investors, further reducing our management fees. We may also, from time to time, (a) waive or voluntarily defer any fees payable to us by our BDCsRegulated Products or any BDCsRegulated Products that we may manage after the date hereof and (b) restructure any existing fee waivers in place with our BDCsRegulated Products so that such of our BDCsRegulated Products will be obligated to pay fee amounts that are less than the full fee amounts owed to us pursuant to the terms of the applicable investment advisory and management agreements between us and such BDC,Regulated Product, and the duration and extent of such waivers and deferrals in each of (a) and (b) may need to be significant to support continued fundraising. In addition to those arrangements, we have entered into and in the future may enter into expense supporting arrangements with certain of our BDCs under which we pay or reimburse certain expenses of our BDCs in order to support their target dividend payments.payments, and we have entered into and in the future may enter into contractual expense limitation agreements with OWLCX in which we waive fees we would otherwise be paid and/or assume expenses of OWLCX so that certain specified expenses do not exceed a set threshold. Furthermore, we have reimbursed, and may in the future pay for or reimburse, certain expenses of our BDCs relating to one-time transaction costs.

Our investment advisory and management agreements with our BDCs renew for successive annual periodsperiods, and will also renew on an annual basis for OWLCX following an initial two-year term, subject to the approval of the applicable BDC’sRegulated Product’s board of directors,directors or board of trustees, as applicable, including a separate vote of a majority of such BDC’sRegulated Product’s independent directors,directors or independent trustees, as applicable, or by the affirmative vote of the holders of a majority of such BDC’sRegulated Product’s outstanding voting securities. In addition, as required by the Investment Company Act, the investment advisory and management agreements with our BDCsRegulated Products may be terminated without penalty upon 60 days’ written notice to the other party. Termination or non-renewal of any of these agreements would reduce our revenues significantly and could have a material adverse effect on our financial condition.

For our other non-BDCnon-Regulated Product Credit products, as well as certain Real Assets products and GP Strategic Capital and certain Real Assets products, which we refer to as our private funds, we enter into investment advisory and management agreements whereby we generally receive base management fees from the inception of such fund through the liquidation of such fund oror, for certain of our GP Strategic Capital productsproducts, for a set period. Non-BDCNon-Regulated Product Credit products generally have a base management fee that is typically based on a percentage of gross asset value (which, if applicable, includes the portion of such investments purchased with leverage) although our alternative credit products generally have a management fee that is typically based on net invested capital, whereas our GP Strategic Capital products generally have a management fee that is initially a set percentage of capital committed by investors, and then, following a step down event (generally either the end of the investment period or, for certain funds, when the fund’s commitments become substantially invested or drawn), is adjusted to a lower percentage of the fund’s cost of unrealized investments, subject to impairment losses for certain funds. While GP Strategic Capital funds are not required to realize assets as of any date, if and to the extent a liquidity strategy event occurs prior to the management fee end date, this could cause a reduction in the amount of management fees we are otherwise entitled to receive. Further, any realization of assets will be within the control of certain of our employees who separately own an interest in a portion of the carried interest and who therefore may have an incentive to effect a realization earlier than one otherwise would expect without such carried interest ownership. With respect to our Real Assets products, our Permanent Capital vehicles have a management fee that is typically based on a percentage of net asset value, and our closed-end vehicles generally have a management fee that is initially a set percentage of capital committed by investors plus a set percentage of the fund’s invested capital with respect to unrealized investments, and then, following a step down event (generally the end of the investment period or commencement of a successor fund), is adjusted to the same or in some cases a lower percentage of the fund’s invested capital with respect to unrealized investments. Following a management fee step down event, the management fee we receive will be reduced when a fund realizes investments or in certain cases when there are permanent changes to the cost basis of unrealized investments.

As our private funds generally have end dates for paying management fees, our revenues will decline in respect of such funds if we are unable to successfully raise successor funds to replace the management fee payments that terminate on the older funds or such successor funds do not generate fees at the same rate due to their size and/or fee structure. Further, to the extent we are unable to meet anticipated fundraising targets or if there are significant redemptions, our ability to collect management fees will be impaired. Additionally, given that such management fees are often based on gross asset value, acquisition costs or invested capital, either throughout the fund term or the portion of the term following the investment period, the management fee received in respect of such fund will be reduced when a fund realizes investments or if the value of an investment is impaired.impaired, as and to the extent specified in the fund’s governing documents. During the investment period of many funds, the fund expects to actively recycle capital into new investments, which would have the impact of replacing investments that have been realized during the investment period, but there are many factors that may limit our ability to effectively recycle capital and realize the full fee potential of any particular fund, including availability of new investments suitable to a particular fund’s strategy.

Further, our right to receive management fees can be impaired by certain actions of investors in a private fund. Our private funds generally provide investors with the right to terminate such fund on both a for-cause basis and a no-fault basis, and may also provide for the right to remove us as manager of a fund for cause or on a no-fault basis and/or the right to create an early step down event with respect to a fund on a for cause basis. If investors in a private fund exercised their right to vote for an early termination, we would typically continue to receive management feefees through the liquidation of such fund,fund. butHowever, as a result of such vote, we could face pressure to liquidate investments earlier than we otherwise believe is appropriate to maximize the value of such investment. Certain funds also provide investors with the right to remove the general partner of such fund for cause or on a no-fault basis. Upon the removal of the general partner of a fund becoming effective, the investment advisory and management agreement in respect of such fund will cease to exist and our rights to payment of management fees will terminate. In some cases, investors may also have the right to redeem after certain periods of time or following regulatory or key person concerns, which would also reduce the base on which fees are charged. In other cases, after an initial lock up period, investors may issue redemption notices with respect to their interests; as such interests are redeemed, the fees will decrease unless we are able to find new investors to replace those redeeming.

We also receive fee income for providing services to our products or certain portfolio companies of our products. Such services include arrangement, syndication, origination, capital markets, structuring analysis, capital structure and business plan advice and other services. Certain types of transaction-related fees are required to be distributed to Blue Owl products and other products under the terms of our Co-investment Exemptive Order, as discussed below in “—Conflicts of Interest—Conflicts of interest may arise in our allocation of capital and co-investment opportunities,” or are required to be distributed to investors in our products or offset against management fees that would otherwise be payable pursuant to the terms of the governing agreements of the relevant vehicles, while other types of related fees may be retained by us with no offset against management fees and contribute to our revenues and, ultimately, to our net income. We may decide not to seek those fees for any reason, including market conditions and expectations. Our ability to receive and retain those fees, and to continue to receive and retain those fees in the future, is dependent on the terms we negotiate with investors in our products, our ability to successfully negotiate for those fees with underlying portfolio companies, the permissibility of receiving and retaining those fees under the relevant legal and regulatory frameworks, and our business determination to negotiate for those fees. As a result, any change to the willingness of portfolio companies to bear those fees, the terms of our products that permit us to receive and retain those fees, the legal and regulatory framework in which we operate or our willingness to negotiate for those fees with portfolio companies of our products, could result in a decrease to our revenues and net income, and ultimately decrease the value of our common stock and our dividends to our stockholders. In addition, the fees generated are typically dependent on transaction frequency and volume, and a slowdown in the pace or size of investments by our products could adversely affect the amount of fees generated.

•Intense competition among alternative asset managers may make fundraising and the deployment of capital more difficult, thereby limiting our ability to grow or maintain our FPAUM. Competition may be amplified by changes in product investors allocating increased amounts of capital away from alternative asset managers; and

•Poor performance of one or more of our products, either relative to market benchmarks or in absolute terms (e.g., based on market value or net asset value of our BDCs’ shares or net asset value of OWLCX’s shares), or compared to our competitors may cause product investors to regard our products less favorably than those of our competitors, thereby adversely affecting our ability to raise new or successor products.

The investment management business is intensely competitive, with competition based on a variety of factors, including investment performance, business relationships, quality of service provided to clients, product investor liquidity, fund terms (including fees and economic sharing arrangements), brand recognition and business reputation. Maintaining our reputation is critical to attracting and retaining product investors and for maintaining our relationships with our regulators, sponsors, Partner Managers, potential co-investors and joint venture partners, as applicable. NegativeSee publicityalso regarding“—Risks Related to Macroeconomic Factors—Difficult market and geopolitical conditions may reduce the value or hamper the performance of the investments made by our company,products or impair the ability of our personnelproducts to raise or ourdeploy Partner Managers could give rise to reputational risk that could significantly harm our existing business and business prospects. We are also currently subject to and may be subject in the future to litigation between ourselves and our Partner Managers, which may harm our reputation.capital.”

•Some of our competitors may havehave, or are perceived to havehave, more expertise or financial, technical, marketing and other resources and more personnel than we do;

•Some of our competitors may have lower fees or alternative fee arrangements that potential clients of oursinvestors may find more appealing;

•Some of our competitors have instituted or may institute low costlow-cost high speed financial applications and services based on artificial intelligence and machine learning technologies (collectively, “AI technologies”) and new competitors may enter the asset management space using new investment platforms based on artificialAI intelligence.technologies.

We have presented returns relating to the historical performance of the products we manage and certain targets of our future performance, including by reference to the internal rate of return (“IRR”) of certain products’ performance using a gross IRR and a net IRR calculation. The historical performance of our products is relevant to us primarily insofar as it is indicative of our reputation and ability to raise new products. The historical and potential returns of the products we advise are not, however, directly linked to returns on shares of our Class A Shares. Therefore, holders of our Class A Shares should not conclude that positive performance of the products we advise will necessarily result in positive returns on a return on investment in our Class A Shares. However, poor performance of our products we advise would likely cause a decline in our revenues and would therefore likely have a negative effect on our operating results, returns on our Class A Shares and a negative impact on our ability to raise new products. Also, there is no assurance that projections in respect of our products or unrealized valuations will be realized.

TheMoreover, the historical returns of our products should not be considered indicative of the future returnreturns of these or from any future products we may raise. Target performance metrics relating to future returns, such as IRR, for any current or future product may vary considerably from the historical returnperformance generated by any particular product, or for our products as a whole. Future returns will also be affected by the risks described elsewhere in this report, including risks of the industries and businesses in which a particular product invests.

Valuation methodologies for certain assets of our products can be opensubject to subjectivity.subjectivity, and our valuation of an asset may differ materially from the value ultimately realized.

Many of the investments in our products are illiquid and thus have no readily ascertainable market prices. We value these investments based on our estimate, or an independent third party’s estimate, of their fair value as of the date of determination.determination, Thewhich determinationoften involves significant subjectivity. There is no single standard for determining fair value and in many cases fair value is best expressed as a range of fair value,values andfrom thuswhich thea amountsingle of unrealized appreciation or depreciation our productsestimate may recognizebe in any reporting period, is to a degree subjective.derived. Our products generally value their investments quarterly at fair value, based on, among other things, the input of third party valuation firms and taking into account the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings, the markets in which the portfolio company operates, comparison to publicly traded companies, discounted cash flow, current market interest rates and other relevant factors. Because such valuations, and particularly valuations of private securities, private companies and privately owned real estate, are inherently uncertain, the valuations may fluctuate significantly over short periods of time due to changes in current market conditions. A fund’s net asset value could be adversely affected if the determinations regarding the fair value of the investments were materially higher than the values that are ultimately realized upon the disposal of such investments. These valuations could, in turn, affect the management fees or performance income that we receive.

Our products, particularly our Credit and Real Assets products, use leverage as part of their respective investment programs and certain products regularly borrow a substantial amount of their capital. The use of leverage poses a significant degree of risk and enhances the possibility of a significant loss in the value of the investment portfolio. A fund may borrow money from time to time to purchase or carry securities or debt obligations or may enter into derivative transactions (such as total return swaps) with counterparties that have embedded leverage. The use of leverage by our products increases the volatility of investments by magnifying the potential for gain or loss on invested equity capital. If the value of a fund’s assets were to decrease, leverage would cause net asset value to decline more sharply than it otherwise would if the fund had not employed leverage. Similarly, any decrease in the fund’s income would cause net income to decline more sharply than it would have if it had not borrowed and employed leverage. Such a decline could negatively affect the fund’s ability to service its debt, which could have a material adverse effect on our products, and as a result, on our financial condition, results of operations and cash flow.

We are vulnerable to an increased number of investors seeking to participate in share redemptionrepurchase programs or tender offers of our non-traded products.

In recent periods we have launched a number of non-traded products, including BDCsBDCs, REITs and REITs.interval funds. Non-traded products often conduct share redemptionrepurchase programs or tender offers to provide liquidity to investors in such vehicles. While such share redemptionrepurchase programs and tender offers may contain restrictions that limit the amount of shares that may be redeemed or purchasedrepurchased in particular periods, an increase in the number of investors requesting redemptionsrepurchases or participating in tender offers, or an increase in the amount of shares redeemed or purchasedrepurchased through such redemptionrepurchase programs or tender offers, of our non-traded products could lead to a decline in the management fees and incentive fees we receive. Economic events affecting the U.S. economy, such as volatility in the financial markets, inflation, fluctuations in interest rates or global or national events that are beyond our control, could cause investors to request redemptionrepurchase of an increased number of shares pursuant to the share redemptionrepurchase programs of our non-traded products, potentially in excess of established limits. Such prolonged economic disruptions have caused a number of similar products to deny redemptionrepurchase requests or to suspend or partially suspend their share redemptionrepurchase programs and tender offers and such suspension may have a negative reputational impact on the manager or on its ability to continue fundraising. Our non-traded products may redeem or purchase fewer shares than investors request due to a lack of readily available funds due to a number of factors, including adverse market conditions beyond our control or the need to maintain liquidity for operations. Certain of our non-traded products may amend or suspend share repurchase programs during periods of market dislocation. This may further limit the amount of cash available to immediately satisfy redemption requests. Any redemptions or purchases of less than amounts requested could undermine investor confidence in our non-traded products and harm our reputation.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in “Item 1A. Risk Factors.Factors” of this report, and should be read in conjunction with the Financial Statements.

As of December 31, 2024,2025, our AUM was $251.1$307.4 billion, which included $159.8$187.7 billion of FPAUM. As of December 31, 2024,2025, we havehad $22.6$28.4 billion in AUM not yet paying fees, providing overapproximately $300$326 million of annualized management fees once deployed. See “—Assets Under Management” for additional information, including important information on how we define these metrics.

OverWe theraised past$17.3 twelve months, 91%billion of ournew GAAPcapital andcommitments FRE management fees were generated by Permanent Capital andduring the remainder was predominantly from long-dated capital, with no meaningful pressure to our asset base from redemptions. The fourth quarter of 20242025, waswith a record fundraising quarter for Blue Owl, in which we raised $9.5$56.3 billion of total capital raised in 2025. This marks another record equity fundraising year for us, both across the private wealth and institutional channels, resulting in an increasingly diversified setrevenue ofprofile productsacross asset classes, strategies and strategies.channels. Inclusive of debt, we raised $18.1 billion ofFundraising, capital in the fourth quarterdeployment, and $47.5 billion in 2024. Fundraising and capital deploymentacquisitions contributed to management fee growth of overapproximately 25% compared withover the priorpast year. We ended the fourth quarter of 20242025 with substantial available capital to deploy, reporting approximately $22.6$28.4 billion of AUM not yet paying fees.

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. Our future results may be adversely affected by slowdowns in fundraising activity and the pace of capital deployment, which could result in delayed management fees. It is currently not possible to predict the ultimate effects of these events on the financial markets, overall economy and our Financial Statements. See “Item 1A. Risk Factors —Risks Related to Macroeconomic Factors.”

Additionally, we intendmay to continue pursuing strategic acquisitions andpursue investments to accelerate our growth and broaden our product offerings.offerings, including opportunistically through acquisitions. Our acquisition strategy is centered around driving additional scale or expanding capabilities that complement or augment our existing products.

Management uses AUM not yet paying fees as an indicator of management fees that will be comingcome 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 overapproximately $300$326 million of additional annualized management fees once deployed or upon the expiration of the relevant fee holidays.

Our capital base is heavily weighted toward Permanent Capital. We view the permanency and duration of the products that we manage as a differentiator in our industry and as a means of measuring the stability of our future revenuesrevenue stream.streams. The chart below presents the composition of our management fees by remaining product duration. 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 remaining life is five years or more, which in isolation may cause our percentage of management fees from Permanent Capital to decline.

•$10.9$20.7 billion of new capital raised in direct lending,raised, primarily driven by $13.0 billion in direct lending products reflecting continued private wealth fundraising in OCIC and OTIC, as$3.9 well as additional fundraisebillion in otheralternative recentlycredit launchedproducts, $1.9 billion in investment grade credit products and $1.0 billion in strategic equity products.

•$12.7$10.0 billion of additional net debt commitments, primarily in direct lendinglending, as we continue to opportunistically manage leverage in our BDCs.

•$7.3$13.3 billion offsetting decrease inof distributions, which primarily relates to distributions paid from our BDCsBDCs, CLOs and CLOs.alternative Redemptionscredit products, and repurchasesredemptions from thesecertain products were not material.BDCs.

Real Assets. The increase in AUM for the year ended December 31, 20242025 was driven by $15.2 billion of products added in connection with the Prima Acquisition and the KAM Acquisition, as well as new capital raised of $4.9$17.0 billion across various products, primarily in our seventh vintage net lease product, Blue Owl Real Estate Net Lease Trust (“ORENT”), our real estate investment trust, our European net lease productREIT, Blue Owl Digital Infrastructure Trust (“ODIT”), our digital infrastructure REIT, and Blue Owl RealDigital EstateInfrastructure Fund VIIII (“OREFODI VIIII”), our triplethird net-leasevintage digital infrastructure drawdown product, andas $4.1well as $14.2 billion added in connection with the IPI Acquisition, partially offset by distributions of additional$4.8 net debt commitments,billion, primarily in OREFour VI.net lease strategy.

•$11.9$16.4 billion of new capital raised, primarily driven by $11.4 billion new capital raised in direct lending,lending primarilyproducts driven byreflecting continued private wealth fundraising in OCIC,OCIC OTIC.and $2.9 billion in alternative credit products.

•$6.6$11.2 billion offsetting decrease inof distributions, which primarily relate to dividendsdistributions paid from our BDCs and CLOs.CLO Redemptionsproducts, and repurchasesredemptions from thesecertain products were not material.BDCs.

Product performance for certain of our products is included throughout this discussion with analysis to facilitate an understanding of our results of operations for the periods presented. TheProducts presented herein represent products that meet certain quantitative and qualitative criteria that management uses to evaluate each product’s contribution to the overall financial performance of Blue Owl, as a whole.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. Past performance is not indicative of future results. As with any investment, there is always the potential for gains as well as the possibility of losses. There can be no assurance that any of these products or our other existing and future products will achieve similar returns. Multiple of invested capital (“MoIC”) and internal rate of return (“IRR”) data has not been presented for products that have launchedbeen withindeploying thecapital lastfor less than two years as such information is generally not meaningful (“NM”).

(56)Invested capital includes capital calls, reinvested dividends anddividends, periodic investor closes,closes and tender offers, as applicable.

(89)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.applicable, but net of all other expenses.

(910)Net MoIC measures the aggregate value generated by a product’s investments in absolute terms. Net 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. Net MoIC is calculated after giving effect to management fees (including Part I Fees) and Part II Fees, as applicable, and all other expenses.applicable.

(1011)Gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the product and the product’s residual value at the end of the measurement period. Gross IRRs are calculated before giving effect to management fees (including Part I Fees) and Part II Fees, as applicable.applicable, but net of all other expenses.

(1112)Net IRRs are calculated consistent with gross IRRs, but after giving effect to management fees (including Part I Fees) and Part II Fees, as applicable, and all other expenses.applicable. An individual investor’s IRR may differ from the reported IRR based on the timing of capital transactions.

(5)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 and carried interest, as applicable.applicable, but net of all other expenses.

(6)Net MoIC measures the aggregate value generated by a product’s investments in absolute terms. Net 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. Net MoIC is calculated after giving effect to management fees and carried interest, as applicable, and all other expenses.applicable.

All amounts shown as of MarchJune 31,30, 2026, totals may not sum due to rounding.

As of MarchJune 31,30, 2026, our AUM was $314.9$319.0 billion, which included $188.4$190.6 billion of FPAUM. As of MarchJune 31,30, 2026, we had $29.9$31.1 billion in AUM not yet paying fees, providing approximately $349$380 million of annualized management fees once deployed. See “—Assets Under Management” for additional information, including important information on how we define these metrics.

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

DuringWe 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 firstlast quartertwelve months, approximately 85% of 2026,our we experienced more modest inflowsGAAP and higherFRE redemptionmanagement requestsfees inwere certain Blue Owl managed non-traded BDCs, drivengenerated by heightenedPermanent focusCapital. on private credit. More broadly, capitalCapital raising during the firstsecond quarter of 2026 was diversified across asset classes, strategies and channels, resulting in $11.0$7.8 billion of new capital commitments during the firstsecond quarter of 2026 and $56.6$50.5 billion over the last twelve months. We ended the firstsecond quarter of 2026 with substantial available capital to deploy, reporting $29.9$31.1 billion of AUM not yet paying fees.

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. DuringOver the firstpast quartereight quarters, we have engaged in five strip sale transactions that in aggregate generated $4.6 billion of 2026,capital returned to investors. We continue to see strong interest in our GPcapital Strategicsolutions Capitalfrom productboth madelimited anpartners investmentin intoour Atlas Holdings, a leading investment platform with a differentiated owner operator model within the industrial, manufacturingfunds and distributiongeneral space,partners andin which we seetake a strengthening pipeline of deploymentstakes as a result of the current market landscape.

As of MarchJune 31,30, 2026, assets under management related to us, our executives and other employees totaled approximately $6.2$5.8 billion (including $2.9$3.0 billion related to accrued carried interest). A portion of these assets under management are not charged fees.

All amounts shown as of MarchJune 31,30, 2026, totals may not sum due to rounding.

Credit. The increase in AUM for the threesix months ended MarchJune 31,30, 2026 was driven by the following:

•$4.1$5.8 billion of new capital raised, primarily driven by $2.3$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, $0.6$1.0 billion in investment grade credit products and $0.8 billion in alternative credit products and $0.6 billion in strategic equity products.

•$4.3$9.0 billion of distributions, which primarily relates to distributions paid from our BDCs, alternativeinvestment grade credit products and investment gradealternative credit products, as well as $1.2$1.1 billion of redemptions from non-traded BDCs.

•$0.9$2.3 billion of overall appreciation, primarily in our alternative credit strategy.and direct lending strategies.

Real Assets. The increase in AUM for the threesix months ended MarchJune 31,30, 2026 was driven by new capital raised of $4.0$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 $1.3$1.1 billion of additional net debt commitments, primarily in ORENT and our sixth vintage net lease product and ORENT,product, partially offset by reductions resulting from distributions of $1.0$2.1 billion, primarily in our net lease strategy.and real estate credit strategies.

GP Strategic Capital. The increase in AUM for the threesix months ended MarchJune 31,30, 2026 was driven by appreciation of $1.4 billion, primarily in our GP minority stakes strategy, and new capital raised of $0.9$2.2 billion, primarily in our GP minority stakes strategy, including our sixth vintage product and co-investmenta vehicles,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 $0.8$1.1 billion in our GP minority stakes strategy.

Credit. The decrease in FPAUM for the threesix months ended MarchJune 31,30, 2026 was driven by the following:

•$2.7$3.9 billion offsetting increase in new capital raised, primarily driven by $1.1$1.7 billion in alternative credit products, $0.6 billion in strategic equity products and $0.5$1.0 billion in investment grade credit products and $0.6 billion in strategic equity products.

Real Assets. The increase in FPAUM for the threesix months ended MarchJune 31,30, 2026 was driven by capital raised and deployed of $2.1$4.5 billion, primarily in ORENT, our real estate credit products and our seventh vintage net lease product, partially offset by distributions of $0.7$1.4 billion, primarily in our net lease strategy and a $0.3 billion fee step down from a prior vintage net lease product.strategy.

GP Strategic Capital. The increase in FPAUM for the threesix months ended MarchJune 31,30, 2026 was driven by new capital raised of $0.6$2.3 billion primarily in our GP minority stakes strategy, including our sixth vintage product,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.

Three Months Ended MarchJune 31,30, 2026, Compared to the Three Months Ended MarchJune 31,30, 2025

•Credit increased $52.1$23.3 million, primarily due to continued fundraising and deployment of capital within new and existing direct lending products, including management fees from direct lending and alternative credit products which increased $9.2$14.2 million.million and $11.6 million, respectively.

•Real Assets increased $2.7$7.4 million, primarily due to higher management fees of $18.5$20.4 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 tolower digital infrastructure productsmanagement whichfees, reflectsas $21.0the prior-year period included $15.7 million of catch-up fees relatedfrom Blue Owl Digital Infrastructure Fund III, substantially all of which were paid as contingent consideration to the IPIsellers Acquisition duringof the firstIPI quarter of 2025.business.

•GP Strategic Capital increased $4.9$7.5 million, primarily driven by fundraising in our sixth vintage GP minority stakes product, partially offset by a fee step downsdown fromin a prior vintage GP minority stakes products.product that occurred in the fourth quarter of 2025.

•$4.8$2.7 million increase in dealer manager revenues, primarily due to growth in salesthe distribution of net lease products.ORENT.

The increase in fee offsets of $10.9$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.

Compensation and Benefits. Compensation and benefits expenses increased,increased primarily due to the following:

•$17.8$19.2 million increaseof inincreased amortization primarily related to recurring annual equity grants, primarily driven by additionalannual grants made during the fourth quarter of 2025 in connection with year-end bonus compensation, as well as acquisition-related equity compensation.

•$16.9The millionremaining increase,increase drivenwas bydue to higher compensation to existing employees, as well as increased headcount due to our continued growth.

•$15.3 millionThe increase in amortizationmanagement fees was primarily relateddue to acquisition-related equity compensation, driven by the Atalayadrivers Earnouts.below. See Note 39 to the financial statements in our AnnualFinancial ReportStatements for additional information.details on our GAAP management fees by strategy.