Blue Owl Capital Inc.

Good morning and welcome to Blue Owl Capital's third quarter 2026 earnings call. During the presentation, your lines will remain on listen only. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I'd like to advise all parties that this conference call is being recorded. I will now turn the call over to Ann Dai, Head of Investor Relations for Blue Owl.

Thanks, operator, and good morning to everyone. Joining me today are Marc Lipschultz, our co-chief executive officer, and Alan Kirshenbaum, 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 third quarter of 2026, reporting fee-related earnings, or FRE, of 27 cents per share and distributable earnings, or DE, of 24 cents per share. We declared a dividend of 23 cents per share for the third quarter, payable on November 23rd to holders of record as of November 10th. 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 Marc.

Thank you so much, Ann. This morning, we reported our financial results for the third quarter of 2026, highlighting 15% FRE growth and 14% DE growth over the last 12 months. Our growth was supported by accelerated management fee growth on a sequential basis and ongoing strength in fundraising, including a record institutional capital raising quarter. This fundraising came from a diversified set of strategies, investors, and geographies, driving AUM growth of 12% year over year to $330 billion. We have continued to demonstrate our central position as one of the most scaled providers of capital across the credit, real assets, and GP stakes markets, which has made us an invaluable partner to businesses across public and private markets, including some of the largest companies in the world. Over the last 12 months, we have deployed a substantial amount of capital with more investment grade counterparties than ever before. This activity has been supported by robust fundraising from an increasingly global set of investors with $49 billion of new capital raised across Blue Owl over the last 12 months. And our AUM not yet earning fees continues to grow with more than $36 billion of AUM, nearly 30% higher than the same time last year, that will drive an incremental $400 million of fees as deployed. We've also distributed a near record amount to investors, with more than $20 billion returned to investors over the last 12 months. The attractive income streams being generated by our funds are a key component of the continued strong performance across our strategies, both on an absolute basis and relative to public benchmarks. Most importantly, we've maintained our investment discipline and rigorous underwriting standards across a widely fluctuating set of rate and economic backdrops, leaning into markets where we see outsized return per unit of risk and remaining cautious when we don't see appropriate returns or terms. Fundamentally, we apply a capital preservation mindset to everything we do, which means we look to protect the downside for our investors, and we believe the strong performance of our products through a myriad of market backdrops reflects this focus. We started 2026 with the market anticipating two or more additional rate cuts by the Fed this year, and of course, 10 months later, that perspective has shifted dramatically, with one rate hike announced in September and additional hikes anticipated over the next six months. The significant moves in rate expectations and yields have created opportunities in key portions of the market we feel well-positioned to lean into. In direct lending, our loan portfolio is floating rate, meaning that not only are we evaluating new deal flow of higher base rates in a wider spread environment than six months ago, but our existing loan book reprices as the SOFR curve moves. This dynamic directly benefits investors in our BDCs and funds through higher net interest income and subsequently benefits Blue Owl through part one fees. Similarly, in alternative credit, we are seeing occasions to invest attractively in floating rate loans and we're buying fixed rate assets at better terms. For insurance clients, we are seeing opportunities to generate higher excess spread across investment-grade credit as market volatility creates dislocations. And our real estate credit team is seeing more demand than ever across loans and various bridge financing structures with more favorable terms than we have seen in some time. We are seeing a lot to like as far as investment opportunities in the current market, and that enthusiasm is echoed by the strong investor demand we continue to see across the whole business, which I will highlight in greater detail shortly. Outside of rates, the dominant theme in market activity remains the significant capital needed to fund the expansion of compute across cloud and AI, and Blue Owl occupies a central role in this ecosystem. Although AI is understandably in focus today, as a reminder, much of our digital infrastructure footprint is tied to cloud, which continues to grow in excess of 20% annually at the hyperscalers. In keeping with our philosophy across the firm of focusing on income generating downside protected investing, our digital infrastructure strategy nearly entirely faces strong investment grade tenants. We own the physical infrastructure that is critical to the digital economy to grow, and we typically lease it out for 15 to 20 years with annual rent escalators, creating a highly predictable and growing stream of rental income for our investors. The role we are taking in this digital economy is to be an important and reliable partner to the hyperscalers while limiting our risk on short-term releasing, construction timing, site energization, or token pricing. Our investors look to us to be their predictable allocation to the AI and compute opportunity while generating very strong returns for investment-grade exposure. We are one of the largest players in this arena, both in terms of our digital infrastructure footprint and the amount of capital we have raised to address this generational opportunity. Our approach to digital infrastructure builds on the foundation established by our leading triple net lease strategy. Across 17 years and more than 6,000 properties, our core expertise has been in owning mission-critical properties, leasing them to investment-grade companies, and generating attractive returns for our investors, and we think we have done that quite well. It's been about a year since the narrative storm around private credit started, and we now have a lot of information available to address the questions that were posed at that time. There have been broad speculation that the industry was going to go through a stress test, and I think the data has proven out in our favor in terms of credit quality. In fact, our direct lending strategy has been one of the top performers over the past year as far as portfolio health, non-accruals, and loss rates. We think we have proven that these achievements resulted from our investment discipline and a rigorous investor-focused mindset that continues to resonate with investors. Finally, as it relates to fundraising, the $49 billion of total capital we've raised over the last 12 months reflects continued investor confidence in our strategies and our capabilities as a disciplined manager. Our investors recognize that we have generated tremendous value on an absolute and relative return basis, and as a result, they have continued to commit more capital to our strategies. And what is becoming more obvious over time is that our business is far more diversified than many had perceived it to be. with growth coming from an increasingly broad set of strategies, investors, and geographies. Institutional and insurance investors have driven about 70% of our last 12-month equity capital raised, and these investors committed approximately 20% more to our funds than this time last year and over 150% more than the same period two years ago. Notably, credit was nearly 45% of our equity capital raised over the last 12 months and 55% in the third quarter, reflecting continued investor engagement contrary to popular narratives. Our credit platform raised over 20% more equity capital from institutional and insurance investors over the last 12 months than the prior year. And real assets equity capital raised over the last 12 months grew by 45%. Year-to-date, approximately one-third of institutional investor activity was driven by re-ups, about one-third was driven by new investors, and about one-third was driven by the cross-sell of existing investors into new products and strategies, highlighting strong underlying expansion of our client base. Blue Owl's global reach and strong standing with investors was recognized earlier this month by PEI. who published their inaugural private markets ranking and named Blue Owl as one of the top 10 global fund managers on the basis of capital raised from institutional investors over the last five years. In wealth, we've raised $11 billion of equity capital over the last 12 months despite the headline environment and have seen recovery in gross inflows from May levels while redemption requests continue to decline. Our distribution partners remain very supportive and engaged with 20 new platform launches so far this year and a similar level of launches expected over the next handful of quarters. Net flows for the last 12 months remain positive and performance in these products remains very strong on an absolute basis and increasingly differentiated on a relative basis. As a reminder, when rates are rising and spreads are widening and the world feels more uncertain, that is an environment when credit tends to outperform. Looking back at 2022, the last time the market saw such rate hikes, direct lenders were some of the best performers, and OCIC was the best performer among the five largest non-traded BDCs in the market. We continue to emphasize a performance-first, education-focused approach, highlighting the outperformance of our funds to pure products and public market equivalents. Over time, we expect that strong fundamental results will outweigh the narratives that were prominent during the first half of 2026. In closing, what we've seen and continue to see across our business is durability, resilience, and excellent investment results. We think the proof is evident in the robust fundraising that reflects investor support and conviction around what we are doing. Our business is growing across all facets, and we remain very optimistic about what is ahead for Blue Owl. With that, let me turn it to Alan to discuss our financial results.