I'm upgrading Blue Owl Capital stock to a Buy rating due to its expanding permanent capital base, strong fee-related earnings growth, and commitment to increasing dividends. Recent earnings highlight a 75% year-over-year AUM increase, 26% fee-related earnings growth, and a 25% dividend raise. Despite competition and macroeconomic risks, OWL's stable recurring fees and projected low-double-digit annualized gains through 2027 make it a compelling investment.

Blue Owl Capital co-CEO Marc Lipschultz discusses the company's agreement to buy up to $2.4 billion of consumer loans from Pagaya Technologies and the outlook for the private credit market and AI investments. Speaking with Vonnie Quinn, Lipschultz says, "We have all the pieces we need for the chessboard" when asked about the firm's acquisition strategy.

Blue Owl Capital Inc. (NYSE:OWL ) Q4 2024 Earnings Conference Call February 6, 2025 8:30 AM ET Company Participants Ann Dai - Head of Investor Relations Marc Lipschultz - Co-Chief Executive Officer Alan Kirshenbaum - Chief Financial Officer Conference Call Participants Glenn Schorr - Evercore ISI Craig Siegenthaler - Bank of America Steven Chubak - Wolfe Research Brian McKenna - Citizens JMP Brennan Hawken - UBS Alexander Blostein - Goldman Sachs Patrick Davitt - Autonomous Research Crispin Love - Piper Sandler Michael Brown - Wells Fargo Alex Bernstein - JPMorgan Bradley Hayes - TD Cowen Operator Good morning, and welcome to the Blue Owl Capital's Fourth Quarter and Full Year 2024 Earnings Call. During the presentation, your lines will remain on listen-only mode.