Blue Owl beats profit estimates, AUM crosses $300 billion milestone

Feb 5 (Reuters) – Blue Owl beat Wall Street estimates for fourth-quarter profit on Thursday and posted a 22% surge in assets under management that crossed the $300 billion milestone, sending its shares up 2% in premarket trading.

The strong performance, driven by strength in the alternative asset manager’s credit and real assets platforms, comes as investors fret over the industry’s exposure to the software sector, where they have extended loans through private credit.

More than $800 billion has been wiped from the S&P 500 software and services index’s market cap since January 28, as investors weigh whether AI has shifted from a tailwind for many of these companies to a potential disruption.

Blue Owl shares have lost about 19% of their value so far in 2026. The stock fell nearly 36% after a plan to merge two of its private credit funds late last year. The plan was later abandoned.

“There’s no emergency here, the fund continues to perform well,” Blue Owl co-President Craig Packer had said at the time. Reuters reported later in November, citing sources, that it had considered reviving the plan if the share price of the larger fund improves.

Blue Owl raised $17.3 billion in new capital commitments in the quarter, while total equity fundraising came in at $12 billion.

Demand for private credit has continued despite recent worries as borrowers turn to direct lenders for flexible financing amid tighter conditions in traditional loan markets.

These firms invest in assets such as private credit, real estate and infrastructure, offering institutional and wealthy clients higher returns and diversification beyond public markets.

On an adjusted basis, Blue Owl’s fee-related earnings per share rose to 27 cents in the three months ended December 31, compared with 23 cents a year earlier.

Adjusted distributable earnings per share rose to 24 cents from 21 cents a year earlier.

Analysts had expected 22 cents, according to estimates compiled by LSEG.

(Reporting by Manya Saini in Bengaluru; Editing by Anil D’Silva)