## Scope note (important) Your selected entity is **Blue Owl Capital Corporation (CIK 0001655888)**, which appears in filings as the **OBDC** BDC registrant (e.g., Form 8‑K about OBDC’s earnings timing). ["BLUE OWL CAPITAL CORPORATION"](0001193125-26-005489|0) The **publicly traded parent for ticker OWL** files as **Blue Owl Capital Inc. (CIK 0001823945)** (e.g., OWL 10‑K/10‑Q and proxy). ["BLUE OWL CAPITAL INC."](0001823945-25-000063|0) Below, I evaluate **OWL (Blue Owl Capital Inc., CIK 0001823945)** using its **10‑K/10‑Q, event 8‑Ks, and proxy disclosures**, and I call out the **OBDC/BDC** event items separately where relevant. ["trade on the NYSE under the symbol “OWL.”"](0001823945-25-000013|0) --- ## What OWL is (business + disclosures that matter) Blue Owl describes itself as a **“leading asset manager”** investing across **Credit, Real Assets, and GP Strategic Capital**, with **AUM** as a central operating KPI (plus **FPAUM** and **Permanent Capital**). ["three multi-strategy platforms: Credit, Real Assets and GP Strategic Capital"](0001823945-25-000059|2) ["AUM of $295.6 billion"](0001823945-25-000059|2) A key analytical point is that OWL emphasizes **non-GAAP “Fee-Related Earnings (FRE)”** and **“Distributable Earnings (DE)”** as core performance metrics (alongside GAAP), and it defines how these differ from GAAP net income. ["Fee-Related Earnings (“FRE”) is a supplemental non-GAAP measure"](0001823945-25-000059|2) --- ## Financial performance (GAAP) ### FY2024 vs FY2023 (GAAP income statement; USD in thousands) | Metric | FY2024 | FY2023 | YoY | |---|---:|---:|---:| | Total revenues, net | 2,295,427 ["Total Revenues, Net | 2,295,427"](0001823945-25-000013|0) | 1,731,608 ["Total Revenues, Net | 1,731,608"](0001823945-25-000013|0) | +32.6% (computed) ["2,295,427"](0001823945-25-000013|0) ["1,731,608"](0001823945-25-000013|0) | | Total expenses | 1,688,670 ["Total Expenses | 1,688,670"](0001823945-25-000013|0) | 1,413,792 ["Total Expenses | 1,413,792"](0001823945-25-000013|0) | +19.4% (computed) ["1,688,670"](0001823945-25-000013|0) ["1,413,792"](0001823945-25-000013|0) | | Income before income taxes | 469,228 ["Income Before Income Taxes | 469,228"](0001823945-25-000013|0) | 246,384 ["Income Before Income Taxes | 246,384"](0001823945-25-000013|0) | +90.4% (computed) ["469,228"](0001823945-25-000013|0) ["246,384"](0001823945-25-000013|0) | | Consolidated net income | 420,446 ["Consolidated Net Income | 420,446"](0001823945-25-000013|0) | 220,776 ["Consolidated Net Income | 220,776"](0001823945-25-000013|0) | +90.4% (computed) ["420,446"](0001823945-25-000013|0) ["220,776"](0001823945-25-000013|0) | | Net income attributable to Blue Owl Capital Inc. | 109,584 ["Net Income Attributable to Blue Owl Capital Inc. | 109,584"](0001823945-25-000013|0) | 54,343 ["Net Income Attributable to Blue Owl Capital Inc. | 54,343"](0001823945-25-000013|0) | +101.6% (computed) ["109,584"](0001823945-25-000013|0) ["54,343"](0001823945-25-000013|0) | **Interpretation:** FY2024 shows strong GAAP top-line growth (management fees + other fees), but investors should expect **GAAP net income to be influenced by “Other Loss” line items** (e.g., warrant/earnout/TRA fair value changes and interest expense), which is one reason management emphasizes FRE/DE. ["Total Other Loss | (137,529)"](0001823945-25-000013|0) ["Fee-Related Earnings (“FRE”) is a supplemental non-GAAP measure"](0001823945-25-000059|2) ### Q3 2025 vs Q3 2024 (GAAP; USD in thousands) | Metric | Q3 2025 | Q3 2024 | YoY | |---|---:|---:|---:| | Total revenues, net | 727,990 ["Total Revenues, Net | 727,990"](0001823945-25-000063|0) | 600,878 ["Total Revenues, Net | 600,878"](0001823945-25-000063|0) | +21.2% (computed) ["727,990"](0001823945-25-000063|0) ["600,878"](0001823945-25-000063|0) | | Total expenses | 615,314 ["Total Expenses | 615,314"](0001823945-25-000063|0) | 461,110 ["Total Expenses | 461,110"](0001823945-25-000063|0) | +33.4% (computed) ["615,314"](0001823945-25-000063|0) ["461,110"](0001823945-25-000063|0) | | Net income attributable to Blue Owl Capital Inc. | 6,310 ["Net Income Attributable to Blue Owl Capital Inc. | 6,310"](0001823945-25-000063|0) | 29,805 ["Net Income Attributable to Blue Owl Capital Inc. | 29,805"](0001823945-25-000063|0) | -78.8% (computed) ["6,310"](0001823945-25-000063|0) ["29,805"](0001823945-25-000063|0) | **Interpretation:** In Q3’25, revenue grew but **expenses grew faster**, and the quarter’s **net income attributable to OWL fell sharply**, highlighting why a pure GAAP EPS lens can be noisy for an alternative manager with acquisition-related amortization, noncash valuation changes, and complex ownership structures. ["Amortization of intangible assets"](0001823945-25-000063|0) ["Net income attributable to noncontrolling interests"](0001823945-25-000063|0) --- ## Non‑GAAP operating earnings (the company’s “core” lens) ### FY2024 vs FY2023 (FRE & DE; USD in thousands) | Metric | FY2024 | FY2023 | YoY | |---|---:|---:|---:| | Fee‑Related Earnings (FRE) | 1,253,366 ["Fee-Related Earnings | 1,253,366"](0001823945-25-000013|0) | 997,717 ["Fee-Related Earnings | 997,717"](0001823945-25-000013|0) | +25.6% (computed) ["1,253,366"](0001823945-25-000013|0) ["997,717"](0001823945-25-000013|0) | | Distributable Earnings (DE) | 1,129,248 ["Distributable Earnings | 1,129,248"](0001823945-25-000013|0) | 927,838 ["Distributable Earnings | 927,838"](0001823945-25-000013|0) | +21.7% (computed) ["1,129,248"](0001823945-25-000013|0) ["927,838"](0001823945-25-000013|0) | **Why it matters:** OWL explicitly frames FRE as focusing on whether **recurring management-fee revenues cover core operating expenses**, while excluding many GAAP items (NCI allocations, equity comp, certain acquisition costs, noncash fair value changes, etc.). ["Fee-Related Earnings (“FRE”) is a supplemental non-GAAP measure"](0001823945-25-000059|2) --- ## AUM momentum (scale + mix) ### AUM / FPAUM / Permanent Capital (as of Sep 30, 2025) | Metric | Value | YoY commentary (as disclosed) | |---|---:|---| | AUM | $295.6B ["AUM of $295.6 billion"](0001823945-25-000059|2) | “up 26% since September 30, 2024” ["up 26% since September 30, 2024"](0001823945-25-000059|2) | | FPAUM | $183.8B ["FPAUM of $183.8 billion"](0001823945-25-000059|2) | “up 19% since September 30, 2024” ["up 19% since September 30, 2024"](0001823945-25-000059|2) | | Permanent Capital | $213.8B ["Permanent Capital of $213.8 billion"](0001823945-25-000059|2) | “up 19% since September 30, 2024” ["up 19% since September 30, 2024"](0001823945-25-000059|2) | **Interpretation:** The mix matters because OWL states Permanent Capital generated **86% of FRE management fees** (LTM), implying more durable fee streams than pure closed-end fundraising cycles—though still exposed to market levels, fundraising pace, and deployment. ["Permanent Capital generated 86% of FRE management fees"](0001823945-25-000059|2) --- ## Event / “current report” items (what changed recently) ### Timeline of selected events (filings) | Date | Event | Why it matters | |---|---|---| | Feb 20, 2025 | Board authorized **up to $150.0m** Class A share repurchase program (terminates earlier of full use or Feb 28, 2027). ["authorized the repurchase of up to $150.0 million"](0001823945-25-000013|0) | Capital return / signaling + potential EPS support (but depends on execution and valuation). | | Apr 1, 2025 (expected “on or about”) | Internal reorganization expected; **Blue Owl Carry** to become wholly owned subsidiary of **Blue Owl Holdings**. ["expected to occur on or about April 1, 2025"](0001823945-25-000013|0) | Simplifies structure; can affect taxes/TRA/NCI mechanics and comparability. | | Nov 5, 2025 (OBDC/BDC complex, not OWL parent) | OBDC and OBDC II announced a **merger agreement**; pro forma portfolio expected to increase by **$1.7B** to **~$18.9B** and close expected **Q1 2026**. ["entered into a definitive merger agreement"](0001193125-25-267102|2) ["increase by $1.7 billion"](0001193125-25-267102|2) ["expected to close in the first quarter of 2026"](0001193125-25-267102|2) | While not OWL’s parent filing, it’s relevant to Blue Owl’s **managed BDC ecosystem** (strategy, fee streams, platform scale). | | Jan 7, 2026 (OBDC/BDC complex) | OBDC to report Q4/FY2025 results **Feb 18, 2026** and host call **Feb 19, 2026**. ["release its financial results… February 18, 2026"](0001193125-26-005489|0) ["earnings… February 19, 2026"](0001193125-26-005489|0) | Near-term catalyst for Blue Owl’s credit platform visibility (again: BDC registrant). | --- ## Governance & incentive structure (proxy disclosures) Two governance disclosures are especially important for OWL’s “evaluate the stock” exercise: 1) **Controlled company status / concentrated voting power** (investor influence trade-off). ["controlled company"](0001823945-25-000013|0) ["multi-class structure… concentrating voting power"](0001823945-25-000013|0) 2) **Executive compensation is not set by an independent compensation committee** (board structure choice; aligns with controlled-company framework). ["We do not have a compensation committee"](0001823945-25-000024|0) Selected pay disclosure (illustrative): in FY2024, the proxy reports CEO total compensation of **$23.9m** and pay ratio **~66x** median employee. ["2024 total compensation… $23,912,432"](0001823945-24-000028|0) ["approximately 66 times"](0001823945-24-000028|0) --- ## Risks to underwrite (from OWL’s own 10‑K framing) OWL’s 10‑K explicitly flags macro/geopolitical conditions, regulatory burden, ESG scrutiny, data protection complexity, and the controlled-company / multi-class governance structure as key risk themes. ["Difficult market and geopolitical conditions"](0001823945-25-000013|0) ["subject to extensive domestic and foreign regulations"](0001823945-25-000013|0) ["increasing scrutiny… ESG-related topics"](0001823945-25-000013|0) ["Increased data protection regulation"](0001823945-25-000013|0) --- ## Bottom line (evaluation) * **Fundamentals:** OWL delivered strong FY2024 GAAP revenue growth and materially higher GAAP profitability, but quarterly GAAP earnings can be volatile (Q3’25 example) due to the business/ownership/accounting structure—so your evaluation should triangulate GAAP with FRE/DE. ["Total Revenues, Net | 2,295,427"](0001823945-25-000013|0) ["Net Income Attributable… 109,584"](0001823945-25-000013|0) ["Net Income Attributable… 6,310"](0001823945-25-000063|0) ["Fee-Related Earnings | 1,253,366"](0001823945-25-000013|0) * **Strategic KPI trend:** The company is scaling AUM/FPAUM/Permanent Capital (Sep 30, 2025), which—per its disclosures—supports fee durability (Permanent Capital driving most FRE fees). ["AUM of $295.6 billion"](0001823945-25-000059|2) ["Permanent Capital generated 86%"](0001823945-25-000059|2) * **Governance discount/premium:** Investors should explicitly decide how to price controlled-company / multi-class governance and the compensation-setting framework (no compensation committee). ["controlled company"](0001823945-25-000013|0) ["multi-class structure"](0001823945-25-000013|0) ["We do not have a compensation committee"](0001823945-25-000024|0) If you want, I can extend this into a **valuation framework** (e.g., fee-related earnings yield, AUM-to-market cap sensitivity, or scenarioing FRE based on FPAUM + fee rates), but I’ll need either your assumed market cap/price or permission to use a market-data tool.

## Scope note (important) Your selected entity is **Blue Owl Capital Corporation (CIK 0001655888)**, which appears in filings as the **OBDC** BDC registrant (e.g., Form 8‑K about OBDC’s earnings timing). ["BLUE OWL CAPITAL CORPORATION"](0001193125-26-005489|0) The **publicly traded parent for ticker OWL** files as **Blue Owl Capital Inc. (CIK 0001823945)** (e.g., OWL 10‑K/10‑Q and proxy). ["BLUE OWL CAPITAL INC."](0001823945-25-000063|0) Below, I evaluate **OWL (Blue Owl Capital Inc., CIK 0001823945)** using its **10‑K/10‑Q, event 8‑Ks, and proxy disclosures**, and I call out the **OBDC/BDC** event items separately where relevant. ["trade on the NYSE under the symbol “OWL.”"](0001823945-25-000013|0) --- ## What OWL is (business + disclosures that matter) Blue Owl describes itself as a **“leading asset manager”** investing across **Credit, Real Assets, and GP Strategic Capital**, with **AUM** as a central operating KPI (plus **FPAUM** and **Permanent Capital**). ["three multi-strategy platforms: Credit, Real Assets and GP Strategic Capital"](0001823945-25-000059|2) ["AUM of $295.6 billion"](0001823945-25-000059|2) A key analytical point is that OWL emphasizes **non-GAAP “Fee-Related Earnings (FRE)”** and **“Distributable Earnings (DE)”** as core performance metrics (alongside GAAP), and it defines how these differ from GAAP net income. ["Fee-Related Earnings (“FRE”) is a supplemental non-GAAP measure"](0001823945-25-000059|2) --- ## Financial performance (GAAP) ### FY2024 vs FY2023 (GAAP income statement; USD in thousands) | Metric | FY2024 | FY2023 | YoY | |---|---:|---:|---:| | Total revenues, net | 2,295,427 ["Total Revenues, Net | 2,295,427"](0001823945-25-000013|0) | 1,731,608 ["Total Revenues, Net | 1,731,608"](0001823945-25-000013|0) | +32.6% (computed) ["2,295,427"](0001823945-25-000013|0) ["1,731,608"](0001823945-25-000013|0) | | Total expenses | 1,688,670 ["Total Expenses | 1,688,670"](0001823945-25-000013|0) | 1,413,792 ["Total Expenses | 1,413,792"](0001823945-25-000013|0) | +19.4% (computed) ["1,688,670"](0001823945-25-000013|0) ["1,413,792"](0001823945-25-000013|0) | | Income before income taxes | 469,228 ["Income Before Income Taxes | 469,228"](0001823945-25-000013|0) | 246,384 ["Income Before Income Taxes | 246,384"](0001823945-25-000013|0) | +90.4% (computed) ["469,228"](0001823945-25-000013|0) ["246,384"](0001823945-25-000013|0) | | Consolidated net income | 420,446 ["Consolidated Net Income | 420,446"](0001823945-25-000013|0) | 220,776 ["Consolidated Net Income | 220,776"](0001823945-25-000013|0) | +90.4% (computed) ["420,446"](0001823945-25-000013|0) ["220,776"](0001823945-25-000013|0) | | Net income attributable to Blue Owl Capital Inc. | 109,584 ["Net Income Attributable to Blue Owl Capital Inc. | 109,584"](0001823945-25-000013|0) | 54,343 ["Net Income Attributable to Blue Owl Capital Inc. | 54,343"](0001823945-25-000013|0) | +101.6% (computed) ["109,584"](0001823945-25-000013|0) ["54,343"](0001823945-25-000013|0) | **Interpretation:** FY2024 shows strong GAAP top-line growth (management fees + other fees), but investors should expect **GAAP net income to be influenced by “Other Loss” line items** (e.g., warrant/earnout/TRA fair value changes and interest expense), which is one reason management emphasizes FRE/DE. ["Total Other Loss | (137,529)"](0001823945-25-000013|0) ["Fee-Related Earnings (“FRE”) is a supplemental non-GAAP measure"](0001823945-25-000059|2) ### Q3 2025 vs Q3 2024 (GAAP; USD in thousands) | Metric | Q3 2025 | Q3 2024 | YoY | |---|---:|---:|---:| | Total revenues, net | 727,990 ["Total Revenues, Net | 727,990"](0001823945-25-000063|0) | 600,878 ["Total Revenues, Net | 600,878"](0001823945-25-000063|0) | +21.2% (computed) ["727,990"](0001823945-25-000063|0) ["600,878"](0001823945-25-000063|0) | | Total expenses | 615,314 ["Total Expenses | 615,314"](0001823945-25-000063|0) | 461,110 ["Total Expenses | 461,110"](0001823945-25-000063|0) | +33.4% (computed) ["615,314"](0001823945-25-000063|0) ["461,110"](0001823945-25-000063|0) | | Net income attributable to Blue Owl Capital Inc. | 6,310 ["Net Income Attributable to Blue Owl Capital Inc. | 6,310"](0001823945-25-000063|0) | 29,805 ["Net Income Attributable to Blue Owl Capital Inc. | 29,805"](0001823945-25-000063|0) | -78.8% (computed) ["6,310"](0001823945-25-000063|0) ["29,805"](0001823945-25-000063|0) | **Interpretation:** In Q3’25, revenue grew but **expenses grew faster**, and the quarter’s **net income attributable to OWL fell sharply**, highlighting why a pure GAAP EPS lens can be noisy for an alternative manager with acquisition-related amortization, noncash valuation changes, and complex ownership structures. ["Amortization of intangible assets"](0001823945-25-000063|0) ["Net income attributable to noncontrolling interests"](0001823945-25-000063|0) --- ## Non‑GAAP operating earnings (the company’s “core” lens) ### FY2024 vs FY2023 (FRE & DE; USD in thousands) | Metric | FY2024 | FY2023 | YoY | |---|---:|---:|---:| | Fee‑Related Earnings (FRE) | 1,253,366 ["Fee-Related Earnings | 1,253,366"](0001823945-25-000013|0) | 997,717 ["Fee-Related Earnings | 997,717"](0001823945-25-000013|0) | +25.6% (computed) ["1,253,366"](0001823945-25-000013|0) ["997,717"](0001823945-25-000013|0) | | Distributable Earnings (DE) | 1,129,248 ["Distributable Earnings | 1,129,248"](0001823945-25-000013|0) | 927,838 ["Distributable Earnings | 927,838"](0001823945-25-000013|0) | +21.7% (computed) ["1,129,248"](0001823945-25-000013|0) ["927,838"](0001823945-25-000013|0) | **Why it matters:** OWL explicitly frames FRE as focusing on whether **recurring management-fee revenues cover core operating expenses**, while excluding many GAAP items (NCI allocations, equity comp, certain acquisition costs, noncash fair value changes, etc.). ["Fee-Related Earnings (“FRE”) is a supplemental non-GAAP measure"](0001823945-25-000059|2) --- ## AUM momentum (scale + mix) ### AUM / FPAUM / Permanent Capital (as of Sep 30, 2025) | Metric | Value | YoY commentary (as disclosed) | |---|---:|---| | AUM | $295.6B ["AUM of $295.6 billion"](0001823945-25-000059|2) | “up 26% since September 30, 2024” ["up 26% since September 30, 2024"](0001823945-25-000059|2) | | FPAUM | $183.8B ["FPAUM of $183.8 billion"](0001823945-25-000059|2) | “up 19% since September 30, 2024” ["up 19% since September 30, 2024"](0001823945-25-000059|2) | | Permanent Capital | $213.8B ["Permanent Capital of $213.8 billion"](0001823945-25-000059|2) | “up 19% since September 30, 2024” ["up 19% since September 30, 2024"](0001823945-25-000059|2) | **Interpretation:** The mix matters because OWL states Permanent Capital generated **86% of FRE management fees** (LTM), implying more durable fee streams than pure closed-end fundraising cycles—though still exposed to market levels, fundraising pace, and deployment. ["Permanent Capital generated 86% of FRE management fees"](0001823945-25-000059|2) --- ## Event / “current report” items (what changed recently) ### Timeline of selected events (filings) | Date | Event | Why it matters | |---|---|---| | Feb 20, 2025 | Board authorized **up to $150.0m** Class A share repurchase program (terminates earlier of full use or Feb 28, 2027). ["authorized the repurchase of up to $150.0 million"](0001823945-25-000013|0) | Capital return / signaling + potential EPS support (but depends on execution and valuation). | | Apr 1, 2025 (expected “on or about”) | Internal reorganization expected; **Blue Owl Carry** to become wholly owned subsidiary of **Blue Owl Holdings**. ["expected to occur on or about April 1, 2025"](0001823945-25-000013|0) | Simplifies structure; can affect taxes/TRA/NCI mechanics and comparability. | | Nov 5, 2025 (OBDC/BDC complex, not OWL parent) | OBDC and OBDC II announced a **merger agreement**; pro forma portfolio expected to increase by **$1.7B** to **~$18.9B** and close expected **Q1 2026**. ["entered into a definitive merger agreement"](0001193125-25-267102|2) ["increase by $1.7 billion"](0001193125-25-267102|2) ["expected to close in the first quarter of 2026"](0001193125-25-267102|2) | While not OWL’s parent filing, it’s relevant to Blue Owl’s **managed BDC ecosystem** (strategy, fee streams, platform scale). | | Jan 7, 2026 (OBDC/BDC complex) | OBDC to report Q4/FY2025 results **Feb 18, 2026** and host call **Feb 19, 2026**. ["release its financial results… February 18, 2026"](0001193125-26-005489|0) ["earnings… February 19, 2026"](0001193125-26-005489|0) | Near-term catalyst for Blue Owl’s credit platform visibility (again: BDC registrant). | --- ## Governance & incentive structure (proxy disclosures) Two governance disclosures are especially important for OWL’s “evaluate the stock” exercise: 1) **Controlled company status / concentrated voting power** (investor influence trade-off). ["controlled company"](0001823945-25-000013|0) ["multi-class structure… concentrating voting power"](0001823945-25-000013|0) 2) **Executive compensation is not set by an independent compensation committee** (board structure choice; aligns with controlled-company framework). ["We do not have a compensation committee"](0001823945-25-000024|0) Selected pay disclosure (illustrative): in FY2024, the proxy reports CEO total compensation of **$23.9m** and pay ratio **~66x** median employee. ["2024 total compensation… $23,912,432"](0001823945-24-000028|0) ["approximately 66 times"](0001823945-24-000028|0) --- ## Risks to underwrite (from OWL’s own 10‑K framing) OWL’s 10‑K explicitly flags macro/geopolitical conditions, regulatory burden, ESG scrutiny, data protection complexity, and the controlled-company / multi-class governance structure as key risk themes. ["Difficult market and geopolitical conditions"](0001823945-25-000013|0) ["subject to extensive domestic and foreign regulations"](0001823945-25-000013|0) ["increasing scrutiny… ESG-related topics"](0001823945-25-000013|0) ["Increased data protection regulation"](0001823945-25-000013|0) --- ## Bottom line (evaluation) * **Fundamentals:** OWL delivered strong FY2024 GAAP revenue growth and materially higher GAAP profitability, but quarterly GAAP earnings can be volatile (Q3’25 example) due to the business/ownership/accounting structure—so your evaluation should triangulate GAAP with FRE/DE. ["Total Revenues, Net | 2,295,427"](0001823945-25-000013|0) ["Net Income Attributable… 109,584"](0001823945-25-000013|0) ["Net Income Attributable… 6,310"](0001823945-25-000063|0) ["Fee-Related Earnings | 1,253,366"](0001823945-25-000013|0) * **Strategic KPI trend:** The company is scaling AUM/FPAUM/Permanent Capital (Sep 30, 2025), which—per its disclosures—supports fee durability (Permanent Capital driving most FRE fees). ["AUM of $295.6 billion"](0001823945-25-000059|2) ["Permanent Capital generated 86%"](0001823945-25-000059|2) * **Governance discount/premium:** Investors should explicitly decide how to price controlled-company / multi-class governance and the compensation-setting framework (no compensation committee). ["controlled company"](0001823945-25-000013|0) ["multi-class structure"](0001823945-25-000013|0) ["We do not have a compensation committee"](0001823945-25-000024|0) If you want, I can extend this into a **valuation framework** (e.g., fee-related earnings yield, AUM-to-market cap sensitivity, or scenarioing FRE based on FPAUM + fee rates), but I’ll need either your assumed market cap/price or permission to use a market-data tool.