Blue Owl Capital Inc.

Good morning and welcome to Blue Owl Capital's fourth quarter and full year 2025 earnings call. During the presentation, your lines will remain on listen only. After the presentation, there will be a question and answer session. To ask a question, please press star 1 on your telephone keypad. I'd like to advise all participants that this conference call is being recorded. I will now turn the call over to Ann Dye, Head of Investor Relations for Blue Owl.

Thanks, Operator, and good morning to everyone. Joining me today are Mark Lipschultz, our Co-Chief Executive Officer, and Alan Kirschenbaum, our Chief Financial Officer. I'd like to remind our listeners that remarks made during the call may contain forward-looking statements which are not a guarantee of future performance or results and involve a number of risks and uncertainties that are outside the company's control. Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described from time to time in Blue Owl Capital's filings with the Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statements. We'd also like to remind everyone that we'll refer to non-GAAP measures on the call, which are reconciled to GAAP figures in our earnings presentation, available on the shareholders section of our website at blueowl.com. Please note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Blue Owl Fund. This morning, we issued our financial results for the fourth quarter of 2025, reporting fee-related earnings, or FRE, of 27 cents per share and distributable earnings, or DE, of 24 cents per share. For the full year 2025, we reported FRE of 96 cents per share and DE of 84 cents per share. We declared a dividend of 22.5 cents per share for the fourth quarter, payable on March 2nd to holders of record as of February 20th. And we also announced an annual fixed dividend of 92 cents for 2026, or 23 cents per quarter, starting with our first quarter 2026 earnings. During the call today, we'll be referring to the earnings presentation, which we posted to our website this morning. So please have that on hand to follow along. With that, I'd like to turn the call over to Mark.

Great. Thank you so much, Anne. Blue Owl experienced significant growth in 2025, measured by record fundraising across an increasingly diversified set of strategies globally. We raised $56 billion of capital across the business, including over $17 billion during the fourth quarter, with record years for both our institutional and private wealth channels. During the fourth quarter, we crossed $300 billion of AUM, another milestone for the firm, and we are seeing robust investor demand and investment pipelines across the business as we enter 2026. Our ability to drive strong results for shareholders starts with investment performance, and we continue to deliver for our clients. Investment performance matters greatly to us as it relates to long-term growth for Blue Owl, and if we deliver great results, business growth will follow. Performance of funds we manage remains strong, supported by our focus on generating attractive returns to income, leveraging our scale to create opportunities that offer attractive return per unit of risk, and protecting the downside through investment structure and rigorous underwriting. Our net lease strategy generated gross returns of over 13% in 2025, and our O-Rent product net return was approximately 11%, meaningfully outperforming the FTSE REIT index total return of 2.3% due to our differentiated investment strategy. And fundraising for O-Rent has accelerated. with inflows up 11% quarter over quarter and 55% year over year, making O-Rent the top net fundraiser in non-traded REITs in 2025. On a fully realized basis, our net lease flagship funds have generated a net IRR of 24% since inception. During the fourth quarter, we sold the final assets of our digital infrastructure fund one for a realized net IRR of approximately 11.5%. Direct lending net returns were 8.7% for the year, compared to the leverage loan index return of 5.9%. And our continuously offered BDCs had continued strong performance, with net returns of 7.4% for OCIC and 8.4% for OTIC. And our GP stakes funds continued to generate very strong IRRs, with a significant amount driven by cash yield. In credit, the fourth quarter was marked by a high level of debate and discussion about the health of the private credit markets. The fact of the matter is the trends we observed within Blue Owl's credit portfolios remained strong and did not align with the headlines or investor fears. The sentiment seems to be echoed broadly by other asset managers and banks alike across broader credit markets. As of the fourth quarter, we continue to see resilient KPIs across our direct lending strategy with healthy underlying portfolio company growth and no meaningful movement in our metrics such as watch list, LTVs, amendment requests, or revolver draws. On average, our borrowers have delivered high single-digit revenue growth and low teens EBITDA growth year over year. Specifically, our tech lending portfolio, this growth has been even higher in the low to mid-teens range on average. Notably, since the launch of ChatGPT in November 2022, which is widely regarded as a turning point in AI, borrowers in our tech portfolio have achieved cumulative weighted average revenue growth of nearly 40% and cumulative weighted average EBITDA growth of nearly 50% through September. Our average annualized net realized loss rate has been eight basis points, encompassing realized losses and gains. This remains well below industry average. Remember, this is not a zero-loss strategy. We have hundreds of borrowers, and we will have losses in the portfolio. No one can loan money without having losses. The expectation of our investors is that we will rigorously underwrite our deals to minimize the faults and maximize recoveries over time, which will drive attractive total returns, as we have done very well. In alternative credit, our portfolios similarly continue to perform as expected, putting up gross returns of 16.6% for the year with no meaningful signs of stress. From a fundraising perspective, industry-wide, non-traded BDCs experienced a slowdown in capital raising and elevated redemptions during the fourth quarter. This is in line with what we have seen in prior market environments with heightened volatility and fear. We saw this during COVID. with the Silicon Valley bank failure and after tariffs were announced last year. We've always managed our funds with a sharp focus on leverage and liquidity, and during the fourth quarter, we met all investor requests for tenders as we have every quarter since inception. Our view is that while sentiment for a particular product, strategy, or asset class will fluctuate, Strong risk-adjusted performance is the only thing that matters over the intermediate and long term, and our products have performed very well in this regard across a wide range of economic and market environments. Despite the headwinds, we had a record quarter for equity raised in private wealth, with about $5 billion raised during the fourth quarter and over $17 billion for the full year. We are now beginning to see the synergies of the acquisitions we made over the past 18 months, During the fourth quarter, we held a $1.7 billion first close on our digital infrastructure evergreen product, Odip, which followed an $850 million close earlier in the year on our alternative credit interval fund, OwlCX, which has already reached $1.8 billion of AUM in just three quarters. In 2025, equity capital raised across our five well-dedicated evergreen products totaled $15.4 billion for the year. which represents 66% of the beginning of the period fee-paying AUM in these products, despite substantial market shocks earlier in the year and near-term headwinds in the non-traded BDCs. All this is to say we have expanded and diversified our private wealth footprint substantially, and we continue to feel that we are just scratching the surface of this market. Moving to our institutional business, we likewise benefited from ongoing diversification and the investments we have made in global distribution. we saw record institutional equity fund rates of $25 billion in 2025, up 80% year-over-year and constituting about 60% of total equity raised in 2025. This includes about $5 billion raised for direct lending across funds and SMAs and over $6.5 billion raised for our net lease strategy across our global, European, and co-invest vehicles. Since 2020, the average time to market for a real estate fund has nearly doubled to more than two years, with roughly half of those funds also falling short of their fundraising targets, highlighting the broader challenges in this asset class. Blue Owl's net lease strategy bucked these trends, with our prior flagship fund, Net Lease Fund 6, holding a final close in the fourth quarter of 2024 above its hard cap, having been in market for just 16 months. The momentum has continued into our current vintage, which remains in market and has raised 60% of its hard cap in just three quarters. And now we have very complementary capabilities in digital infrastructure, which is similarly focused on generating attractive income-driven returns through a net lease structure, working with tenants that have some of the best credit ratings in the world. We think we have a very unique offering for investors in digital infrastructure, a pure play that will benefit from the demand for hyperscalers for data centers while remaining focused on principal preservation. And finally, to call out some of the contributors to our fundraising that have been less observable, we have now reached our $2.5 billion target for the latest vintage of our opportunistic alternative credit product, with $1 billion of that raised in 2025. In total, we raised nearly $4 billion across alternative credit in 2025 after having closed on the acquisition in September 2024. Our GP-led continuation strategy is approaching the final close of its first vintage, for which it will have raised approximately $2.5 billion. We think this is an excellent result for a first-time raise in a new strategy. It has exceeded our recent expectations on fundraising, and we've deployed a meaningful amount of the capital already. And in GP stakes, as we previously disclosed, the strip sales we completed in 2025 drove $2.6 billion of capital raised on top of fundraising for our minority stakes funds. Looking at the big picture on fundraising, we took substantial steps forward by strengthening our global distribution platform, launching new products, and expanding or launching new partnerships throughout the course of 2025. Entering the year, we knew this would be an investment and execution year, laying the tracks for future earnings growth. You can see the early successes of that long-term plan in the results that we reported this morning. Despite the significant investments we've made, we were able to end the year with FRE margins slightly above our guidance for 2025. And heading into 2026, we believe we can achieve modest operating leverage and continue to make progress on FRE per share growth. Bringing it back to where I started. We continue to deliver for our clients. We strongly believe that high-quality performance drives business growth over time and that the continued diversification of the business will support well-balanced growth. We're very proud of the work that we've done over the past two years to position Blue Owl for long-term success across a variety of market environments, and we look forward to sharing more updates in the quarters to come. With that, let me turn it to Alan to discuss our financial results.