Blue Owl Capital saw its shares rise sharply after reporting stronger-than-expected earnings, offering a measure of relief to investors amid heightened concerns around private credit markets and recent fund redemption pressures, according to a report by Bloomberg.
The New York-based firm posted first-quarter fee-related earnings of $393.6m, up 14% year-on-year and ahead of analyst expectations, while assets under management increased to $315bn, supported by growth in its real assets franchise.
Shares climbed as much as 14% in early trading in New York, before settling around 10% higher, as investors reacted to results that executives said contrasted with what they described as overly pessimistic market sentiment.
Co-chief executive Marc Lipschultz told analysts that underlying credit conditions remain stable, arguing that private credit portfolios do not typically experience abrupt deterioration. He added that current performance trends point to continued portfolio resilience over the near term.
The update comes after a volatile period for the firm, which has been one of the focal points for broader concerns in private credit. Earlier this year, Blue Owl capped redemptions in certain funds following a surge in withdrawal requests, and previously abandoned a planned fund combination after investor pushback.
Despite this, management pointed to continued deployment opportunities across the platform, particularly in areas such as digital infrastructure, where demand linked to data centre expansion remains strong. The firm also highlighted growth in its real assets business as a key driver of fundraising momentum.
Blue Owl said it raised $11bn in new capital during the first quarter and $57bn over the past 12 months, with a significant share of inflows coming from strategies outside its core direct lending platform.
While direct lending activity showed some net outflows during the period, executives said portfolio fundamentals remained broadly healthy, with no meaningful increase in non-accruals or borrower stress indicators.
The firm also referenced investment gains in high-profile positions, including its stake in SpaceX, which management said has delivered substantial realised returns.
