Blue Owl Capital’s (NYSE: OWL) co-CEO Marc Lipschultz specified that the company does not see any “warnings” in relation to software application AI interruption.
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” Tech financing has actually worked, continues to work and to get extremely direct, no, we do not have any warnings. In reality, we do not have yellow flags. We have mainly green flags. The tech portfolio continues to be the most beautiful among all of our subsectors,” Lipschultz stated throughout a 4th quarter incomes call with experts.
The co-CEO included that Blue Owl’s software application loan book has actually stayed strong and hasn’t seen any declines in efficiency. These loans typically 30% of the worth of the business, with “big” equity cushions, he included.
” I wish to make certain everybody comprehends that software application stays a location where advanced purchasers are still extremely active. If you have the best software application options, you are going to take advantage of the adoption of AI. This monolithic view and action individuals are taking is going to show, I believe, rather misdirected, and it’s going to cause a miss out on in considerable chances, he included.
CFO Alan Kirshenbaum kept in mind that Blue Owl’s overall direct exposure to software application loans throughout its properties under management (AUM) is 8 percent.
Blue Owl’s AUM increased 22 percent given that Dec. 31, 2024, as much as $307 billion. This was mainly driven by capital raised throughout business, along with the acquisition of IPI.
The company raised $17 billion in brand-new capital dedications in the quarter; brand-new capital dedications raised consisted of $56 billion throughout the year.
Fee-paying AUM increased 17 percent given that Dec. 31, 2024, to $187 billion. This was mainly due to capital raised throughout business, the IPI acquisition and implementation in credit.
In Blue Owl’s Credit platform, AUM increased 16 percent given that Dec. 31, 2024, driven by capital raised in items from the direct financing and alternative credit techniques, partly balanced out by circulations in the direct financing method.
Kirshenbaum kept in mind that Blue Owl is “behind its Financier Day objectives,” due to headwinds in personal credit.
” We’re simply one year into a five-year long-lasting target. However the last couple of months we have actually had headwinds in personal credit, AI and software application. We have actually seen a downturn for non-traded Organization Advancement Business (BDCs) and personal wealth circulations and a boost in the tenders for non-traded BDCs,” Kirshenbaum stated.
The CFO included that the company thinks it can reveal a modest boost in the development rate of fee-related incomes (FRE) per share this year versus last and can speed up that development this year.
OWL Cost Action: Blue Owl Capital stock shut down 3.49% on Thursday. After-hours trading has the stock up 1.45% at $11.80 a share.
Picture: T. Schneider through Shutterstock