Blue Owl Capital reported continued growth in the first quarter of 2026, with assets under management (AUM) rising to US$314.9 billion, up 15 per cent over the year, as the firm leaned on diversification beyond its core direct lending franchise.
That expansion reflected a combination of capital inflows, asset appreciation and balance sheet activity, with the firm’s multi-strategy model increasingly driving growth across credit, real assets and GP strategic capital rather than relying on a single engine.
It was reported by Bloomberg in February that the US$1.7 billion ($2.4 billion) Blue Owl fund had permanently restricted withdrawals after facing as much as $150 million in redemptions over nine months. Rather than redeem their money quarterly, investors’ money is being returned in instalments.
The fund invested in US middle market companies by originating senior secured, floating-rate credit, primarily in the technology sector which has come under pressure recently.
Fundraising remained a key pillar of the quarterly result, with US$11.0 billion in new capital commitments secured during the quarter, including US$9.0 billion in equity. Over the past 12 months, total equity fundraising reached US$44.4 billion, underscoring sustained investor appetite across both institutional and private wealth channels.
Institutional investors accounted for the majority of quarterly inflows at $6.1 billion, while private wealth contributed US$2.9 billion, with demand particularly concentrated in net lease real estate and direct lending products.
Earnings growth broadly tracked this expansion, with fee-related earnings increasing 14 per cent year on year to US$393.6 million and distributable earnings rising 11 per cent to US$292.5 million.
On a per share basis, fee-related earnings reached US$0.25 and distributable earnings US$0.19.
The firm’s earnings profile continued to benefit from its large base of permanent capital, which rose 15 per cent to US$224.8 billion and generated around 85 per cent of fee-related earnings over the past year, providing a stable and recurring revenue stream.
At the same time, a sizeable pipeline of undeployed capital remained a forward driver of earnings, with US$29.9 billion in assets not yet paying fees expected to generate approximately US$349 million in annual management fees once invested.
While credit remains the firm’s largest platform, accounting for US$159.2 billion in assets, the quarter highlighted a shift in where growth is occurring.
Real assets delivered the strongest expansion, with assets rising 27 per cent year on year to US$85.1 billion, supported by capital raising into net lease strategies, digital infrastructure and real estate credit.
GP strategic capital also continued to grow, albeit at a slower pace, with assets increasing 5 per cent to US$70.6 billion as the firm expanded its minority stakes strategy in alternative asset managers.
Within credit, underlying activity appeared more mixed, although assets in the platform rose 14 per cent year on year, deployment trends pointed to a more cautious environment, with direct lending originations of US$6.8 billion offset by repayments, resulting in net deployment of negative US$0.5 billion for the quarter.
Performance in direct lending also softened in the near term, with net returns of minus 1.1 per cent for the quarter compared with 5.0 per cent over the previous 12 months, reflecting a combination of market conditions and portfolio dynamics.
Meanwhile, other areas of the credit platform, including alternative credit, continued to generate positive returns, while real assets strategies such as net lease and digital infrastructure delivered steady income and capital growth, helping balance overall performance.
The diversification of earnings sources was also evident in revenue trends, with management fees increasing 10 per cent year on year to $663.8 million for the quarter and total GAAP revenues rising to US$753.8 million.
