The Intrinsic Value Podcast - The Investor’s Podcast Network
TIVP009: Blue Owl Capital (OWL): The Next Blackstone? w/ Shawn O’Malley
Mar 2, 2025
Discover the rapid rise of Blue Owl Capital, a contender in alternative asset management. Learn how this firm emerged from strategic mergers and now manages over $230 billion. Explore the fascinating dynamics of permanent capital and why investors are increasingly drawn to private credit. Dive into the challenges of valuing financial services businesses and the risks associated with rapid growth. Shawn O’Malley reveals insights on investment strategies and the unique position Blue Owl holds in today's financial landscape.
01:13:51
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Quick takeaways
- Blue Owl Capital has rapidly grown its assets under management to $235 billion, highlighting its significant impact in alternative asset management.
- The firm's focus on private credit allows it to fill the lending gap left by traditional banks, providing crucial financing to middle-market companies.
Deep dives
Blue Owl Capital's Business Model and Growth
Blue Owl Capital specializes in alternative asset management, focusing primarily on private credit lending and related investment strategies. The company has achieved remarkable growth, boasting $235 billion in assets under management (AUM), up from $45 billion in just a few years, representing an astounding annual growth rate of 35%. In addition to managing assets, Blue Owl generates revenue through management fees, which are notably higher in alternative investments compared to traditional asset management. The firm's free cash flow has also seen a significant increase, growing at 48% per year, showcasing the underlying strength of its business fundamentals.
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