Blue Owl Capital offers durable asset management
The bull case argued for Blue Owl Capital is that its fee structure is highly resilient due to a permanent capital base, making it less vulnerable to market cycles than traditional performance-fee-driven peers.
The argument
The guest noted that unlike competitors reliant on volatile incentive fees, Blue Owl's asset management fees are highly durable. Despite negative headlines surrounding private credit, the company grew revenues by 20% and continues to expand assets under management.
The thesis, stress-tested
✓ What validates it
- ✓Continued double-digit growth in assets under management (AUM)
- ✓Revenue growth matching or exceeding the previous year's 20% rate
▸ Risks discussed
- ▸Negative sector sentiment regarding private credit impacting short-term stock performance
- ▸Potential pressure on asset management fees if industry-wide competition intensifies
Hear it yourself
"They're growing their assets under management, but obviously they're in the headlines all of the time. And so, you know, it's, it's, it's jarring sometimes for like a client to be like, why, why do we, I see this Blue Owl Capital on the front page of the Wall Street Journal, and the headlines are always pretty bad."
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