Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 11 Sep, 25 | OWL | Buy | USD 18.9 | USD 20.0 | USD 21.0 | 20 days | Closed |
14.18%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Blue Owl Capital Inc. operates as an asset manager. It offers permanent capital base solutions that enables it to offer a holistic platform to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. The company provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; GP capital solutions products, which offers capital solutions, including GP minority equity investments, GP debt financing, and professional sports minority investments to large private capital managers; and real estate products that focuses on structuring sale-leaseback transactions, which includes triple net leases. It offers its solutions through permanent capital vehicles, as well as long-dated private funds. The company is headquartered in New York, New York.
Strong Revenue Growth: GAAP revenues rose 28% to USD 703.1 million in Q2 FY2025, compared with USD 549.8 million in Q2 FY2024
Robust Asset Growth: AUM surged 48% year-over-year to USD 284.1 billion as of June 30, 2025, versus USD 191.9 billion as of June 30, 2024
Decline in Net Income: GAAP net income fell 49% to USD 17.4 million in Q2 FY2025, down from USD 33.9 million in Q2 FY2024
Rising Compensation Costs: Compensation and benefits expenses increased 44% to USD 326.3 million in Q2 FY2025, compared with USD 227.1 million in Q2 FY2024
Blue Owl’s growth trajectory is heavily exposed to macroeconomic volatility, as sustained interest rate increases, geopolitical instability, or a slowdown in fundraising and deployment could materially impact management fees and liquidity
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 18.9 | 16.5 | 20.0 | 21.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue and Earnings Trends: In the second quarter of FY2025, Blue Owl reported GAAP revenues of USD 703.1 million, reflecting a 28% increase compared with USD 549.8 million in Q2 FY2024. Fee-Related Earnings (FRE) grew to USD 358.3 million, a 21% year-over-year rise from USD 296.5 million, underscoring the firm’s stable fee-centric business model. Distributable Earnings (DE) also strengthened to USD 323.0 million versus USD 273.0 million in the prior year period, showing a resilient core profitability base.
Net Income Performance: Despite strong revenue growth, GAAP net income attributable to Blue Owl fell sharply to USD 17.4 million in Q2 FY2025, down from USD 33.9 million in Q2 FY2024. The decline was primarily driven by higher compensation and benefits expenses, which rose 44% year-over-year to USD 326.3 million. This highlights ongoing cost pressures even as topline momentum remains robust.
Assets Under Management Growth: As of June 30, 2025, total Assets Under Management (AUM) reached USD 284.1 billion, up 48% from USD 191.9 billion at June 30, 2024. Fee-Paying AUM (FPAUM) increased 46% year-over-year to USD 177.5 billion, driven by fundraising strength, acquisitions, and capital deployment. Permanent Capital stood at USD 204.6 billion, reflecting 41% growth versus the prior year.
Fundraising and Capital Deployment: The company recorded a record fundraising quarter with USD 13.9 billion of new capital commitments, including USD 12.1 billion of new equity capital. In addition, FPAUM raised and deployed during the quarter totaled USD 5.4 billion. This reflects Blue Owl’s ability to attract institutional capital despite volatile macroeconomic conditions.
Platform and Segment Expansion: Growth was broad-based across platforms. Credit AUM increased to USD 145.5 billion, Real Assets rose to USD 71.5 billion, and GP Strategic Capital reached USD 67.1 billion. The GP Strategic Capital business alone has distributed more than USD 2.9 billion over the past year, highlighting its strength in capital return even in challenging environments.
Liquidity and Capital Position: Blue Owl ended the quarter with approximately USD 1.1 billion in available liquidity and maintained investment-grade credit ratings (BBB / BBB+ / Baa2). AUM not yet paying fees stood at USD 28.6 billion, representing approximately USD 379 million of future annualized management fees once deployed, providing visibility into earnings growth.
Dividend Policy: For 2025, Blue Owl announced an annual dividend of USD 0.90 per Class A share, a 25% increase from 2024, with USD 0.225 declared for Q2 FY2025. This reflects management’s confidence in future distributable earnings growth and the strength of the firm’s cash flow profile.
Blue Owl grew its AUM 48% year over year to USD 284,100 million, fee-paying AUM 46% to USD 177,500 million, and permanent capital 41% to USD 204,600 million. Fee-related earnings rose 21% to USD 358 million and distributable earnings 18% to USD 323 million. Management fees jumped 34% on a record USD 13,900 million quarterly fundraising, with Real Assets revenue more than doubling and Credit/GP Strategic Capital also increasing. Henceforth, based on potential valuation upside, trading levels, and company's improving performance in the second quarter, a ‘Buy’ recommendation on the stock at the current market price of USD 18.90, as of September 11, 2025 at 9:10 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Asset Management
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| OWL Blue Owl Capital Inc |
-1.43 10.66% | 11.99 | 187.13 | 20.45 | 12.76 | 4.39 | 5.34 | 16.47 |
| BX Blackstone Group Inc |
-7.15 5.06% | 134.13 | 44.45 | 29.85 | 14.38 | 14.06 | 11.73 | |
| BLK BlackRock Inc |
-49.34 4.41% | 1070.32 | 23.92 | 21.23 | 8.04 | 3.78 | 7.54 | 16.86 |
| APO Apollo Global Management LLC Class A |
-6.58 4.94% | 126.61 | 18.23 | 20.92 | 3.08 | 6.11 | 2.73 | 14.76 |
| IVSXF Investor AB (publ) |
- -% | 38.90 | 20.83 | - | 0.88 | 1.11 | 10.01 | 1.68 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on September 11, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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