FALSE2021Q30001823945--12-31P2YP3Y00018239452021-01-012021-09-300001823945us-gaap:CommonClassAMember2021-01-012021-09-300001823945owl:WarrantsToPurchaseClassASharesMember2021-01-012021-09-30xbrli:shares0001823945us-gaap:CommonClassAMember2021-11-050001823945us-gaap:CommonClassCMember2021-11-050001823945owl:CommonClassDMember2021-11-05iso4217:USD00018239452021-09-3000018239452020-12-31iso4217:USDxbrli:shares0001823945us-gaap:CommonClassAMember2021-09-300001823945us-gaap:CommonClassAMember2020-12-310001823945us-gaap:CommonClassCMember2021-09-300001823945us-gaap:CommonClassCMember2020-12-310001823945owl:CommonClassDMember2021-09-300001823945owl:CommonClassDMember2020-12-310001823945owl:CommonClassEMember2021-09-300001823945owl:CommonClassEMember2020-12-310001823945owl:BusinessDevelopmentCompanyFeesMember2021-07-012021-09-300001823945owl:BusinessDevelopmentCompanyFeesMember2020-07-012020-09-300001823945owl:BusinessDevelopmentCompanyFeesMember2021-01-012021-09-300001823945owl:BusinessDevelopmentCompanyFeesMember2020-01-012020-09-300001823945us-gaap:AssetManagement1Member2021-07-012021-09-300001823945us-gaap:AssetManagement1Member2020-07-012020-09-300001823945us-gaap:AssetManagement1Member2021-01-012021-09-300001823945us-gaap:AssetManagement1Member2020-01-012020-09-300001823945us-gaap:AdministrativeServiceMember2021-07-012021-09-300001823945us-gaap:AdministrativeServiceMember2020-07-012020-09-300001823945us-gaap:AdministrativeServiceMember2021-01-012021-09-300001823945us-gaap:AdministrativeServiceMember2020-01-012020-09-3000018239452021-07-012021-09-3000018239452020-07-012020-09-3000018239452020-01-012020-09-3000018239452021-05-192021-09-300001823945us-gaap:MemberUnitsMember2021-06-300001823945us-gaap:MemberUnitsMember2020-06-300001823945us-gaap:MemberUnitsMember2020-12-310001823945us-gaap:MemberUnitsMember2019-12-310001823945us-gaap:MemberUnitsMember2020-07-012020-09-300001823945us-gaap:MemberUnitsMember2021-01-012021-09-300001823945us-gaap:MemberUnitsMember2020-01-012020-09-300001823945us-gaap:MemberUnitsMember2021-09-300001823945us-gaap:MemberUnitsMember2020-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-06-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-06-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-12-310001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2019-12-310001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-01-012021-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-07-012021-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-06-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-06-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-12-310001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2019-12-310001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-01-012021-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-07-012021-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-09-300001823945us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-09-300001823945us-gaap:CommonStockMemberowl:CommonClassDMember2021-06-300001823945us-gaap:CommonStockMemberowl:CommonClassDMember2020-06-300001823945us-gaap:CommonStockMemberowl:CommonClassDMember2020-12-310001823945us-gaap:CommonStockMemberowl:CommonClassDMember2019-12-310001823945us-gaap:CommonStockMemberowl:CommonClassDMember2021-01-012021-09-300001823945us-gaap:CommonStockMemberowl:CommonClassDMember2021-07-012021-09-300001823945us-gaap:CommonStockMemberowl:CommonClassDMember2021-09-300001823945us-gaap:CommonStockMemberowl:CommonClassDMember2020-09-300001823945us-gaap:CommonStockMemberowl:CommonClassEMember2021-06-300001823945us-gaap:CommonStockMemberowl:CommonClassEMember2020-06-300001823945us-gaap:CommonStockMemberowl:CommonClassEMember2020-12-310001823945us-gaap:CommonStockMemberowl:CommonClassEMember2019-12-310001823945us-gaap:CommonStockMemberowl:CommonClassEMember2021-01-012021-09-300001823945us-gaap:CommonStockMemberowl:CommonClassEMember2021-09-300001823945us-gaap:CommonStockMemberowl:CommonClassEMember2020-09-300001823945us-gaap:AdditionalPaidInCapitalMember2021-06-300001823945us-gaap:AdditionalPaidInCapitalMember2020-06-300001823945us-gaap:AdditionalPaidInCapitalMember2020-12-310001823945us-gaap:AdditionalPaidInCapitalMember2020-09-300001823945us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001823945us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001823945us-gaap:AdditionalPaidInCapitalMember2021-09-300001823945us-gaap:RetainedEarningsMember2021-06-300001823945us-gaap:RetainedEarningsMember2020-06-300001823945us-gaap:RetainedEarningsMember2020-12-310001823945us-gaap:RetainedEarningsMember2019-12-310001823945us-gaap:RetainedEarningsMember2021-07-012021-09-300001823945us-gaap:RetainedEarningsMember2021-01-012021-09-300001823945us-gaap:RetainedEarningsMember2021-09-300001823945us-gaap:RetainedEarningsMember2020-09-300001823945us-gaap:ParentMember2021-09-300001823945us-gaap:ParentMember2020-09-300001823945us-gaap:NoncontrollingInterestMember2021-06-300001823945us-gaap:NoncontrollingInterestMember2020-06-300001823945us-gaap:NoncontrollingInterestMember2020-12-310001823945us-gaap:NoncontrollingInterestMember2019-12-310001823945us-gaap:NoncontrollingInterestMember2021-01-012021-09-300001823945us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001823945us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001823945us-gaap:NoncontrollingInterestMember2020-01-012020-09-300001823945us-gaap:NoncontrollingInterestMember2021-09-300001823945us-gaap:NoncontrollingInterestMember2020-09-3000018239452020-09-300001823945us-gaap:CommonStockMemberowl:CommonClassEMember2021-07-012021-09-3000018239452019-12-31owl:segmentowl:votePerSharexbrli:pure0001823945owl:CommonClassBAndCommonClassDMember2021-09-300001823945us-gaap:CommonClassBMember2021-09-300001823945us-gaap:CommonClassBMember2021-01-012021-09-30owl:shareowl:vote0001823945srt:MinimumMemberus-gaap:CommonClassAMember2021-09-300001823945srt:MaximumMemberus-gaap:CommonClassAMember2021-09-300001823945srt:MinimumMemberus-gaap:CommonClassAMember2021-07-210001823945us-gaap:CommonClassAMember2021-07-210001823945owl:CommonClassEMember2021-07-212021-07-210001823945us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-05-180001823945owl:ClassOfWarrantOrRightRedemptionPeriodOneMember2021-09-300001823945srt:MinimumMemberowl:ClassOfWarrantOrRightRedemptionPeriodTwoMember2021-09-300001823945owl:ClassOfWarrantOrRightRedemptionPeriodTwoMembersrt:MaximumMember2021-09-300001823945owl:ClassOfWarrantOrRightRedemptionPeriodTwoMember2021-09-300001823945owl:SeriesE2Member2021-09-300001823945us-gaap:RestrictedStockUnitsRSUMember2021-09-300001823945owl:NonPrincipalsMember2021-01-012021-09-300001823945us-gaap:PrincipalOwnerMember2021-01-012021-09-300001823945owl:GPUnitsMemberowl:EarnoutSecuritiesMember2021-07-212021-07-210001823945owl:CommonUnitsMemberowl:EarnoutSecuritiesMember2021-07-212021-07-210001823945owl:CommonUnitsMember2021-07-212021-07-210001823945us-gaap:CommonClassCMemberowl:CommonUnitsMember2021-07-212021-07-210001823945owl:CommonClassDMemberowl:CommonUnitsMember2021-07-212021-07-210001823945owl:BlueOwlOperatingGroupMember2021-09-300001823945owl:BlueOwlOperatingGroupMemberowl:SeriesE2Member2021-09-3000018239452021-05-190001823945us-gaap:AccountingStandardsUpdate201602Member2021-01-01owl:agreement00018239452021-09-200001823945us-gaap:CommonClassAMember2021-09-200001823945owl:EquityInterestConsiderationMember2021-01-012021-09-300001823945owl:CashConsiderationMember2021-01-012021-09-300001823945srt:MinimumMember2021-01-012021-09-300001823945srt:MaximumMember2021-01-012021-09-300001823945owl:DyalMember2021-05-192021-05-190001823945owl:DyalMember2021-05-190001823945us-gaap:CustomerContractsMemberowl:DyalMember2021-01-012021-09-300001823945us-gaap:CustomerRelationshipsMemberowl:DyalMember2021-01-012021-09-300001823945owl:DyalMemberus-gaap:TrademarksMember2021-01-012021-09-300001823945us-gaap:CustomerContractsMember2021-09-300001823945srt:MinimumMemberus-gaap:CustomerContractsMember2021-01-012021-09-300001823945us-gaap:CustomerContractsMembersrt:MaximumMember2021-01-012021-09-300001823945us-gaap:CustomerContractsMember2021-01-012021-09-300001823945us-gaap:CustomerRelationshipsMember2021-09-300001823945us-gaap:CustomerRelationshipsMember2021-01-012021-09-300001823945us-gaap:TrademarksMember2021-09-300001823945us-gaap:TrademarksMember2021-01-012021-09-300001823945owl:DyalMember2021-07-012021-09-300001823945owl:DyalMember2021-01-012021-09-300001823945owl:DyalMember2020-01-012020-09-300001823945owl:A2031SeniorNotesMemberus-gaap:SeniorNotesMember2021-09-300001823945us-gaap:RevolvingCreditFacilityMemberowl:A2024RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-09-300001823945us-gaap:RevolvingCreditFacilityMemberowl:RevolvingCreditFacility1Memberus-gaap:LineOfCreditMember2020-12-310001823945owl:RevolvingCreditFacility2Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-12-310001823945owl:TermLoanMemberus-gaap:SecuredDebtMember2020-12-310001823945owl:A2031SeniorNotesMemberus-gaap:SeniorNotesMember2021-06-100001823945owl:A2031SeniorNotesMemberus-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2021-01-012021-09-300001823945owl:A2031SeniorNotesMemberus-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2021-01-012021-09-300001823945us-gaap:RevolvingCreditFacilityMemberowl:A2024RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-04-150001823945us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMemberowl:A2024RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-04-152021-04-150001823945us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMemberowl:A2024RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-04-152021-04-150001823945us-gaap:FederalFundsEffectiveSwapRateMemberus-gaap:RevolvingCreditFacilityMemberowl:A2024RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-04-152021-04-150001823945owl:GreaterThanThresholdMemberus-gaap:RevolvingCreditFacilityMemberowl:A2024RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-04-152021-04-150001823945owl:LessThanThresholdMemberus-gaap:RevolvingCreditFacilityMemberowl:A2024RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-04-152021-04-150001823945owl:TermLoanMemberus-gaap:SecuredDebtMember2021-06-012021-06-300001823945owl:DirectLendingProductsMemberowl:DiversifiedLendingMember2021-07-012021-09-300001823945owl:DirectLendingProductsMemberowl:DiversifiedLendingMember2020-07-012020-09-300001823945owl:DirectLendingProductsMemberowl:DiversifiedLendingMember2021-01-012021-09-300001823945owl:DirectLendingProductsMemberowl:DiversifiedLendingMember2020-01-012020-09-300001823945owl:TechnologyLendingMemberowl:DirectLendingProductsMember2021-07-012021-09-300001823945owl:TechnologyLendingMemberowl:DirectLendingProductsMember2020-07-012020-09-300001823945owl:TechnologyLendingMemberowl:DirectLendingProductsMember2021-01-012021-09-300001823945owl:TechnologyLendingMemberowl:DirectLendingProductsMember2020-01-012020-09-300001823945owl:FirstLienLendingMemberowl:DirectLendingProductsMember2021-07-012021-09-300001823945owl:FirstLienLendingMemberowl:DirectLendingProductsMember2020-07-012020-09-300001823945owl:FirstLienLendingMemberowl:DirectLendingProductsMember2021-01-012021-09-300001823945owl:FirstLienLendingMemberowl:DirectLendingProductsMember2020-01-012020-09-300001823945owl:OpportunisticLendingMemberowl:DirectLendingProductsMember2021-07-012021-09-300001823945owl:OpportunisticLendingMemberowl:DirectLendingProductsMember2020-07-012020-09-300001823945owl:OpportunisticLendingMemberowl:DirectLendingProductsMember2021-01-012021-09-300001823945owl:OpportunisticLendingMemberowl:DirectLendingProductsMember2020-01-012020-09-300001823945us-gaap:AssetManagement1Memberowl:DirectLendingProductsMember2021-07-012021-09-300001823945us-gaap:AssetManagement1Memberowl:DirectLendingProductsMember2020-07-012020-09-300001823945us-gaap:AssetManagement1Memberowl:DirectLendingProductsMember2021-01-012021-09-300001823945us-gaap:AssetManagement1Memberowl:DirectLendingProductsMember2020-01-012020-09-300001823945us-gaap:AdministrativeServiceMemberowl:DirectLendingProductsMember2021-07-012021-09-300001823945us-gaap:AdministrativeServiceMemberowl:DirectLendingProductsMember2020-07-012020-09-300001823945us-gaap:AdministrativeServiceMemberowl:DirectLendingProductsMember2021-01-012021-09-300001823945us-gaap:AdministrativeServiceMemberowl:DirectLendingProductsMember2020-01-012020-09-300001823945owl:DirectLendingProductsMember2021-07-012021-09-300001823945owl:DirectLendingProductsMember2020-07-012020-09-300001823945owl:DirectLendingProductsMember2021-01-012021-09-300001823945owl:DirectLendingProductsMember2020-01-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPMinorityEquityInvestmentsMember2021-07-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPMinorityEquityInvestmentsMember2020-07-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPMinorityEquityInvestmentsMember2021-01-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPMinorityEquityInvestmentsMember2020-01-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPDebtFinancingMember2021-07-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPDebtFinancingMember2020-07-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPDebtFinancingMember2021-01-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:GPDebtFinancingMember2020-01-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:ProfessionalSportsMinorityInvestmentsMember2021-07-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:ProfessionalSportsMinorityInvestmentsMember2020-07-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:ProfessionalSportsMinorityInvestmentsMember2021-01-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:ProfessionalSportsMinorityInvestmentsMember2020-01-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:StrategicRevenueSharePurchaseConsiderationAmortizationMember2021-07-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:StrategicRevenueSharePurchaseConsiderationAmortizationMember2020-07-012020-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:StrategicRevenueSharePurchaseConsiderationAmortizationMember2021-01-012021-09-300001823945owl:GPCapitalSolutionsProductsMemberowl:StrategicRevenueSharePurchaseConsiderationAmortizationMember2020-01-012020-09-300001823945us-gaap:AssetManagement1Memberowl:GPCapitalSolutionsProductsMember2021-07-012021-09-300001823945us-gaap:AssetManagement1Memberowl:GPCapitalSolutionsProductsMember2020-07-012020-09-300001823945us-gaap:AssetManagement1Memberowl:GPCapitalSolutionsProductsMember2021-01-012021-09-300001823945us-gaap:AssetManagement1Memberowl:GPCapitalSolutionsProductsMember2020-01-012020-09-300001823945us-gaap:AdministrativeServiceMemberowl:GPCapitalSolutionsProductsMember2021-07-012021-09-300001823945us-gaap:AdministrativeServiceMemberowl:GPCapitalSolutionsProductsMember2020-07-012020-09-300001823945us-gaap:AdministrativeServiceMemberowl:GPCapitalSolutionsProductsMember2021-01-012021-09-300001823945us-gaap:AdministrativeServiceMemberowl:GPCapitalSolutionsProductsMember2020-01-012020-09-300001823945owl:GPCapitalSolutionsProductsMember2021-07-012021-09-300001823945owl:GPCapitalSolutionsProductsMember2020-07-012020-09-300001823945owl:GPCapitalSolutionsProductsMember2021-01-012021-09-300001823945owl:GPCapitalSolutionsProductsMember2020-01-012020-09-300001823945us-gaap:AssetManagement1Member2020-12-310001823945us-gaap:AssetManagement1Member2019-12-310001823945us-gaap:AssetManagement1Member2021-09-300001823945us-gaap:AssetManagement1Member2020-09-300001823945us-gaap:AdministrativeServiceMember2020-12-310001823945us-gaap:AdministrativeServiceMember2019-12-310001823945us-gaap:AdministrativeServiceMember2021-09-300001823945us-gaap:AdministrativeServiceMember2020-09-300001823945owl:CashConsiderationMember2020-12-310001823945owl:EquityInterestConsiderationMember2020-12-310001823945owl:CashConsiderationMember2021-09-300001823945owl:EquityInterestConsiderationMember2021-09-300001823945us-gaap:LeaseholdImprovementsMember2021-09-300001823945us-gaap:LeaseholdImprovementsMember2020-12-310001823945us-gaap:FurnitureAndFixturesMember2021-09-300001823945us-gaap:FurnitureAndFixturesMember2020-12-310001823945owl:ComputerHardwareAndSoftwareMember2021-09-300001823945owl:ComputerHardwareAndSoftwareMember2020-12-310001823945owl:A2021OmnibusEquityIncentivePlanMember2021-09-300001823945us-gaap:CommonClassCMemberowl:CommonUnitsMember2021-07-012021-09-300001823945owl:CommonUnitsMember2021-07-012021-09-300001823945owl:CommonUnitsMember2020-07-012020-09-300001823945owl:CommonUnitsMember2021-01-012021-09-300001823945owl:CommonUnitsMember2020-01-012020-09-300001823945owl:EarnoutSecuritiesMember2021-07-012021-09-300001823945owl:EarnoutSecuritiesMember2020-07-012020-09-300001823945owl:EarnoutSecuritiesMember2021-01-012021-09-300001823945owl:EarnoutSecuritiesMember2020-01-012020-09-300001823945us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001823945us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001823945us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001823945us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001823945owl:CommonUnitsMember2020-12-310001823945owl:EarnoutSecuritiesMember2020-12-310001823945us-gaap:RestrictedStockUnitsRSUMember2020-12-310001823945owl:CommonUnitsMember2021-09-300001823945owl:EarnoutSecuritiesMember2021-09-30owl:installment0001823945us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-310001823945us-gaap:RestrictedStockUnitsRSUMember2020-09-142020-09-140001823945srt:RevisionOfPriorPeriodReclassificationAdjustmentMemberus-gaap:RestrictedStockUnitsRSUMember2021-05-190001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMember2021-09-300001823945owl:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Member2021-06-300001823945us-gaap:WarrantMemberus-gaap:FairValueInputsLevel3Member2021-06-300001823945owl:EarnoutSecuritiesLiabilityMemberus-gaap:FairValueInputsLevel3Member2021-06-300001823945us-gaap:FairValueInputsLevel3Member2021-06-300001823945owl:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Member2021-07-012021-09-300001823945us-gaap:WarrantMemberus-gaap:FairValueInputsLevel3Member2021-07-012021-09-300001823945owl:EarnoutSecuritiesLiabilityMemberus-gaap:FairValueInputsLevel3Member2021-07-012021-09-300001823945us-gaap:FairValueInputsLevel3Member2021-07-012021-09-300001823945owl:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:WarrantMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945owl:EarnoutSecuritiesLiabilityMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:FairValueInputsLevel3Member2021-09-300001823945owl:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Member2020-12-310001823945us-gaap:WarrantMemberus-gaap:FairValueInputsLevel3Member2020-12-310001823945owl:EarnoutSecuritiesLiabilityMemberus-gaap:FairValueInputsLevel3Member2020-12-310001823945us-gaap:FairValueInputsLevel3Member2020-12-310001823945owl:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-09-300001823945us-gaap:WarrantMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-09-300001823945owl:EarnoutSecuritiesLiabilityMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-09-300001823945us-gaap:FairValueInputsLevel3Member2021-01-012021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:MeasurementInputPriceVolatilityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:FairValueInputsLevel3Member2021-09-300001823945us-gaap:MeasurementInputDiscountForLackOfMarketabilityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Member2021-09-3000018239452021-07-2100018239452021-07-212021-07-210001823945srt:AffiliatedEntityMemberowl:AdministrativeFeesMember2021-07-012021-09-300001823945srt:AffiliatedEntityMemberowl:AdministrativeFeesMember2021-01-012021-09-300001823945srt:AffiliatedEntityMemberowl:AdministrativeFeesMember2020-07-012020-09-300001823945srt:AffiliatedEntityMemberowl:AdministrativeFeesMember2020-01-012020-09-300001823945srt:AffiliatedEntityMemberowl:ManagementFeesMember2021-09-300001823945srt:AffiliatedEntityMemberowl:ManagementFeesMember2020-12-310001823945srt:AffiliatedEntityMemberowl:AdministrativeFeesMember2021-09-300001823945srt:AffiliatedEntityMemberowl:AdministrativeFeesMember2020-12-310001823945srt:AffiliatedEntityMember2021-09-300001823945srt:AffiliatedEntityMember2020-12-310001823945srt:AffiliatedEntityMemberowl:ExpenseSupportAndCapsArrangementsMember2021-07-012021-09-300001823945srt:AffiliatedEntityMemberowl:ExpenseSupportAndCapsArrangementsMember2020-07-012020-09-300001823945srt:AffiliatedEntityMemberowl:ExpenseSupportAndCapsArrangementsMember2021-01-012021-09-300001823945srt:AffiliatedEntityMemberowl:ExpenseSupportAndCapsArrangementsMember2020-01-012020-09-300001823945srt:AffiliatedEntityMemberowl:AircraftServicesMember2021-07-012021-09-300001823945srt:AffiliatedEntityMemberowl:AircraftServicesMember2021-01-012021-09-300001823945srt:AffiliatedEntityMemberowl:AircraftServicesMember2020-07-012020-09-300001823945srt:AffiliatedEntityMemberowl:AircraftServicesMember2020-01-012020-09-300001823945owl:CommonUnitsMember2021-07-012021-09-300001823945us-gaap:WarrantMember2021-07-012021-09-300001823945owl:EarnoutSecuritiesMember2021-07-012021-09-300001823945owl:CommonUnitsMember2021-05-192021-09-300001823945us-gaap:WarrantMember2021-05-192021-09-300001823945owl:EarnoutSecuritiesMember2021-05-192021-09-300001823945us-gaap:SubsequentEventMember2021-11-092021-11-090001823945us-gaap:SubsequentEventMemberus-gaap:SeniorNotesMemberowl:A2051SeniorNotesMember2021-10-070001823945us-gaap:SubsequentEventMemberus-gaap:SeniorNotesMemberowl:A2051SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2021-10-072021-10-070001823945us-gaap:SubsequentEventMemberus-gaap:SeniorNotesMemberowl:A2051SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2021-10-072021-10-070001823945owl:OakStreetRealEstateCapitalLLCMemberus-gaap:SubsequentEventMember2021-10-180001823945owl:OakStreetRealEstateCapitalLLCMemberus-gaap:SubsequentEventMember2021-10-182021-10-180001823945us-gaap:SubsequentEventMemberus-gaap:RestrictedStockUnitsRSUMember2021-10-012021-11-090001823945srt:MinimumMemberus-gaap:SubsequentEventMemberus-gaap:CommonClassAMember2021-11-030001823945us-gaap:SubsequentEventMemberus-gaap:CommonClassAMember2021-11-030001823945us-gaap:SubsequentEventMemberowl:CommonClassEMember2021-11-032021-11-030001823945us-gaap:SubsequentEventMemberowl:GPUnitsMemberowl:EarnoutSecuritiesMember2021-11-032021-11-030001823945us-gaap:SubsequentEventMemberowl:CommonUnitsMemberowl:EarnoutSecuritiesMember2021-11-032021-11-030001823945owl:CommonUnitsMemberus-gaap:SubsequentEventMember2021-11-032021-11-030001823945us-gaap:SubsequentEventMemberus-gaap:CommonClassCMemberowl:CommonUnitsMember2021-11-032021-11-030001823945us-gaap:SubsequentEventMemberowl:CommonClassDMemberowl:CommonUnitsMember2021-11-032021-11-030001823945srt:ScenarioForecastMemberowl:EarnoutSecuritiesMemberus-gaap:SubsequentEventMember2021-10-012021-12-310001823945us-gaap:SubsequentEventMember2021-11-012021-11-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 10-Q
___________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-39653
___________________________
owl-20210930_g1.jpg
BLUE OWL CAPITAL INC.
(Exact name of registrant as specified in its charter)
___________________________
Delaware86-3906032
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
399 Park Avenue,New York,NY10022
(address of principal executive offices)
(212) 419-3000
(Registrant’s telephone number, including area code)
___________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Class A common stockOWLNew York Stock Exchange
Warrants to purchase Class A common stockOWL.WSNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding at November 5, 2021
Class A common stock, par value $0.0001364,697,135 
Class C common stock, par value $0.0001688,914,013 
Class D common stock, par value $0.0001319,132,127 


Table of Contents
TABLE OF CONTENTS
Page
i

Table of Contents
Defined Terms

Assets Under Management or AUMRefers to the assets that we manage, and are generally equal to the sum of (i) net asset value (“NAV”); (ii) drawn and undrawn debt; and (iii) uncalled capital commitments.
our BDCsRefers to our business development companies, as regulated under the Investment Company Act of 1940, as amended: Owl Rock Capital Corporation (NYSE: ORCC) (“ORCC”), Owl Rock Capital Corporation II (“ORCC II”), Owl Rock Capital Corporation III (“ORCC III”), Owl Rock Technology Finance Corp. (“ORTF”) and Owl Rock Core Income Corp. (“ORCIC”).
Part I FeesRefers to quarterly performance income on the net investment income of our BDCs and similarly structured products, subject to a fixed hurdle rate. These fees are classified as management fees as they are predictable and recurring in nature, not subject to repayment, and cash-settled each quarter.
Part II FeesGenerally refers to fees from our BDCs and similarly structured products that are paid in arrears as of the end of each measurement period when the cumulative aggregate realized capital gains exceed the cumulative aggregate realized capital losses and aggregate unrealized capital depreciation, less the aggregate amount of Part II Fees paid in all prior years since inception.
RegistrantRefers to Blue Owl Capital Inc.
Blue Owl, the Company, we, us, and ourRefers to the Registrant and its consolidated subsidiaries.
Blue Owl Operating GroupRefers collectively to the Blue Owl Operating Partnerships and their consolidated subsidiaries.
Blue Owl Operating Group UnitsRefers collectively to a unit in each of the Blue Owl Operating Partnerships.
Blue Owl Operating PartnershipsRefers to Blue Owl Carry and Blue Owl Capital Holdings, collectively.
Blue Owl CarryRefers to Blue Owl Capital Carry LP.
Blue Owl Capital HoldingsRefers to Blue Owl Capital Holdings LP.
Business Combination
Refers to the transactions contemplated by the Business Combination Agreement, which were completed on May 19, 2021.
Business Combination Agreement or BCARefers to the agreement dated as of December 23, 2020 (as the same has been or may be amended, modified, supplemented or waived from time to time), by and among Altimar Acquisition Corporation, Owl Rock Capital Group LLC, Owl Rock Capital Feeder LLC, Owl Rock Capital Partners LP and Neuberger Berman Group LLC.
Business Combination DateRefers to May 19, 2021.
Class A SharesRefers to the Class A common stock, par value $0.0001 per share, of the Registrant.
Class B SharesRefers to the Class B common stock, par value $0.0001 per share, of the Registrant.
Class C SharesRefers to the Class C common stock, par value $0.0001 per share, of the Registrant.
Class D SharesRefers to the Class D common stock, par value $0.0001 per share, of the Registrant.
Class E SharesRefers to the Class E common stock, par value $0.0001 per share, of the Registrant.
Direct LendingRefers to our Direct Lending products, which offer private credit solutions to middle-market companies through four investment strategies: diversified lending, technology lending, first lien lending and opportunistic lending. Direct Lending products comprise the pre-Business combination Owl Rock business.
Dyal CapitalRefers to the Dyal Capital Partners business, which was acquired from Neuberger Berman Group LLC in connection with the Business Combination.
ii

Table of Contents
Fee-Paying AUM or FPAUMRefers to the AUM on which management fees are earned. For our BDCs, FPAUM is generally equal to total assets (including assets acquired with debt, but excluding cash). For our other Direct Lending products, FPAUM is generally equal to NAV or investment cost. FPAUM also includes uncalled committed capital for products where we earn management fees on such uncalled committed capital. For our GP Capital Solutions products, FPAUM for the GP minority equity investments strategy is generally equal to capital commitments during the investment period and the cost of unrealized investments after the investment period. For GP Capital Solutions’ other strategies, FPAUM is generally equal to investment cost.
GP Capital SolutionsRefers to our GP Capital Solutions products, which primarily focus on acquiring equity stakes in, or providing debt financing to, large, multi-product private equity and private credit platforms through three existing and one emerging investment strategies: GP minority equity investments, GP debt financing, professional sports minority investments and co-investments and structured equity. GP Capital Solutions products comprise the pre-Business Combination Dyal Capital business.
NYSERefers to the New York Stock Exchange.
Owl RockRefers collectively to the combined businesses of Owl Rock Capital Group LLC (excluding certain assets) and Blue Owl Securities LLC (formerly, Owl Rock Capital Securities LLC), which was the predecessor of Blue Owl for accounting and financial reporting purposes.
SECRefers to the U.S. Securities and Exchange Commission.
Tax Receivable Agreement or TRARefers to the Tax Receivable Agreement, dated as of May 19, 2021, as may be amended from time to time by and among the Registrant, Blue Owl Capital GP LLC, the Blue Owl Operating Partnerships and each of the Partners (as defined therein) party thereto.
iii

Table of Contents
AVAILABLE INFORMATION
We file annual, quarterly and current reports, proxy statements and other information required by the Securities Exchange Act of 1934, as amended (the “Exchange Act”) with the SEC. We make available free of charge on our website (www.blueowl.com) our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and any amendments to those filings as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. We also use our website to distribute company information, including assets under management and performance information, and such information may be deemed material. Accordingly, investors should monitor our website, in addition to our press releases, SEC filings and public conference calls and webcasts.
Also posted on our website in the “Investor Relations—Governance” section is the charter for our Audit Committee, as well as our Corporate Governance Guidelines and Code of Business Conduct governing our directors, officers and employees. Information on, or accessible through, our website is not a part of, and is not incorporated into, this report or any other SEC filing. Copies of our SEC filings or corporate governance materials are available without charge upon written request to Blue Owl Capital Inc., 399 Park Avenue, 38th Floor, New York, New York 10022, Attention: Office of the Secretary. Any materials we file with the SEC are also publicly available through the SEC’s website (www.sec.gov).
No statements herein, available on our website or in any of the materials we file with the SEC constitute, or should be viewed as constituting, an offer of any fund.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act, which reflect our current views with respect to, among other things, future events, operations and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Such forward-looking statements are subject to various risks, uncertainties (some of which are beyond our control) or other assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Some of these factors are described in this report and in the Current Report on Form 8-K filed on May 21, 2021 under the headings “Owl Rock’s Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in Exhibit 99.5, and “Dyal’s Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in Exhibit 99.6, and “Risk Factors.” These factors should not be construed as exhaustive and should be read in conjunction with the risk factors and other cautionary statements that are included in this report and in our other periodic filings. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
iv

Table of Contents
PART I—FINANCIAL INFORMATION
Item 1.    Financial Statements
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Consolidated and Combined Statements of Financial Condition (Unaudited)
(Dollars in Thousands, Except Per Share Data)
 September 30, 2021December 31, 2020
Assets 
Cash and cash equivalents$138,875 $11,630 
Investments (includes $292,602 and $ at fair value)
300,649 2,678 
Due from related parties184,349 92,698 
Operating lease assets66,605  
Strategic Revenue-Share Purchase consideration, net504,244  
Deferred tax assets514,098 800 
Intangible assets, net2,150,473  
Goodwill3,563,422  
Other assets, net27,434 13,791 
Total Assets$7,450,149 $121,597 
Liabilities
Debt obligations, net$683,557 $356,386 
Accrued compensation173,493 207,957 
Operating lease liabilities67,846  
Deferred tax liabilities50,386  
TRA liability (includes $123,122 and $ at fair value)
482,510  
Warrant liability, at fair value67,891  
Earnout Securities liability, at fair value661,707  
Accounts payable, accrued expenses and other liabilities81,166 58,415 
Total Liabilities2,268,556 622,758 
Commitments and Contingencies (Note 11)
Shareholders’ Equity (Deficit)
Members’ deficit prior to the Business Combination— (507,687)
Class A Shares, par value $0.0001 per share, 2,500,000,000 and none authorized, 357,201,703 and none issued and outstanding
36 — 
Class C Shares, par value $0.0001 per share, 1,500,000,000 and none authorized, 658,647,360 and none issued and outstanding
66 — 
Class D Shares, par value $0.0001 per share, 350,000,000 and none authorized, 306,894,250 and none issued and outstanding
31 — 
Class E Shares, par value $0.0001 per share, 100,000,000 and none authorized, 7,495,432 and none issued and outstanding
1 — 
Additional paid-in capital1,879,040 — 
Accumulated deficit(463,612)— 
Total Shareholders’ Equity Attributable to Blue Owl Capital Inc.1,415,562  
Shareholders’ equity attributable to noncontrolling interests3,766,031 6,526 
Total Shareholders’ Equity (Deficit)5,181,593 (501,161)
Total Liabilities and Shareholders’ Equity (Deficit)$7,450,149 $121,597 
The accompanying notes are an integral part of these consolidated and combined financial statements.
1

Table of Contents
Blue Owl Capital Inc.
Consolidated and Combined Statements of Operations (Unaudited)
(Prior to May 19, 2021, Owl Rock)
(Dollars in Thousands, Except Per Share Data) 
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Revenues
Management fees, net (includes Part I Fees of $43,659, $2,701, $108,646 and $9,052)
$203,750 $39,146 $440,598 $112,830 
Administrative, transaction and other fees44,125 14,897 94,761 30,979 
Total Revenues, Net247,875 54,043 535,359 143,809 
Expenses
Compensation and benefits96,910 44,214 1,366,459 108,658 
Amortization of intangible assets46,191  67,527  
General, administrative and other expenses28,438 13,642 94,818 48,457 
Total Expenses171,539 57,856 1,528,804 157,115 
Other Loss
Net losses on investments(145) (145) 
Net losses on retirement of debt  (16,145) 
Interest expense(6,112)(6,127)(17,787)(18,007)
Change in TRA liability(4,733) (5,879) 
Change in warrant liability(27,462) (42,762) 
Change in Earnout Securities liability(293,122) (756,092) 
Total Other Loss(331,574)(6,127)(838,810)(18,007)
Loss Before Income Taxes(255,238)(9,940)(1,832,255)(31,313)
Income tax benefit(14,391)(26)(43,402)(119)
Consolidated and Combined Net Loss(240,847)(9,914)(1,788,853)(31,194)
Net loss attributable to noncontrolling interests187,524 1,292 1,412,600 3,069 
Net Loss Attributable to Blue Owl Capital Inc. (After May 19, 2021) / Owl Rock (Prior to May 19, 2021)$(53,323)$(8,622)$(376,253)$(28,125)
Three Months Ended September 30, 2021
May 19, 2021 through
September 30, 2021
Net Loss Attributable to Class A Shares$(53,323)$(450,512)
Net Loss per Class A Share
Basic$(0.16)$(1.34)
Diluted$(0.16)$(1.36)
Weighted-Average Class A Shares
Basic(1)
338,472,456335,472,904
Diluted338,472,4561,281,179,067
(1)Includes 9,050,000 fully vested RSUs that do not participate in dividends until settled. See Note 13.

The accompanying notes are an integral part of these consolidated and combined financial statements.
2

Table of Contents
Blue Owl Capital Inc.
Consolidated and Combined Statements of Changes in Shareholders’ Equity (Deficit) (Unaudited)
(Prior to May 19, 2021, Owl Rock)
(Dollars in Thousands, Except Per Share Data) 
 Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Members’ Deficit Prior to the Business Combination
Beginning balance$ $(396,584)$(507,687)$(352,756)
Distributions— (500)(103,143)(24,825)
Comprehensive income (loss) prior to the Business Combination Date— (8,622)74,259 (28,125)
Transfer of predecessor members’ deficit to additional paid-in capital and noncontrolling interests— — 536,571 — 
Ending Balance$ $(405,706)$ $(405,706)
Class A Shares Par Value
Beginning balance$32 $ $ $ 
Impact of the Business Combination— — 32 — 
Share issuance in connection with Strategic Revenue-Share Purchase3 — 3 — 
Settlement of E-1 Earnout Securities1 — 1 — 
Ending Balance$36 $ $36 $ 
Class C Shares Par Value
Beginning balance$63 $ $ $ 
Impact of the Business Combination— — 63 — 
Settlement of E-1 Earnout Securities3 — 3 — 
Ending Balance$66 $ $66 $ 
Class D Shares Par Value
Beginning balance$29 $ $ $ 
Impact of the Business Combination— — 29 — 
Settlement of E-1 Earnout Securities2 — 2 — 
Ending Balance$31 $ $31 $ 
Class E Shares Par Value
Beginning balance$1 $ $ $ 
Impact of the Business Combination— — 1 — 
Settlement of E-1 Earnout Securities— — — — 
Ending Balance$1 $ $1 $ 
3

Table of Contents
Blue Owl Capital Inc.
Consolidated and Combined Statements of Changes in Shareholders’ Equity (Deficit) (Unaudited)
(Prior to May 19, 2021, Owl Rock)
(Dollars in Thousands, Except Per Share Data) 
 Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Additional Paid-in Capital
Beginning balance$1,496,826 $ $ $ 
Transfer of predecessor Owl Rock members’ deficit to additional paid-in capital and noncontrolling interests— — (138,133)— 
Cash proceeds from the Business Combination— — 1,738,478 — 
Offering costs related to the Business Combination(114)— (126,423)— 
Allocation of cash proceeds to warrant liability— — (25,128)— 
Allocation to earnout liability for Class E Shares issued in connection with the Business Combination— — (83,949)— 
Deferred taxes and TRA liability recognized in the Business Combination (excluding Dyal Acquisition)— — 145,163 — 
Reallocation between additional paid-in capital and noncontrolling interests related to the Business Combination— — (325,222)— 
Reallocation between additional paid-in capital and noncontrolling interests due to changes in Blue Owl Operating Group ownership and related tax impacts67,582 — 67,582 — 
Equity-based compensation— — 311,926 — 
Share issuance in connection with Strategic Revenue-Share Purchase and related tax impacts200,434 — 200,434 — 
Settlement of Earnout Securities liability and related tax and TRA impacts114,312 — 114,312 — 
Ending Balance$1,879,040 $ $1,879,040 $ 
Accumulated Deficit
Beginning balance$(397,189)$ $ $ 
Cash dividends declared on Class A Shares(13,100)— (13,100)— 
Comprehensive loss following the Business Combination Date(53,323)— (450,512)— 
Ending Balance$(463,612)$ $(463,612)$ 
Total Shareholders' Equity Attributable to Blue Owl Capital Inc.$1,415,562 $ $1,415,562 $ 
Shareholders’ Equity Attributable to Noncontrolling Interests
Beginning balance$3,283,985 $4,908 $6,526 $2,259 
Transfer of predecessor Owl Rock member’ deficit to additional paid-in capital and noncontrolling interests— — (398,438)— 
Common Units issued as consideration related to the Dyal Acquisition— — 4,285,359 — 
Acquisition of noncontrolling interests in the Blue Owl Operating Group in connection with the Business Combination— — (491,956)— 
Allocation to earnout liability for Seller Earnout Units issued in connection with the Business Combination— — (160,540)— 
Reallocation between additional paid-in capital and noncontrolling interests related to the Business Combination— — 325,222 — 
Reallocation between additional paid-in capital and noncontrolling interests due to changes in Blue Owl Operating Group ownership(71,257)— (71,257)— 
Contributions3,566 2,483 10,737 7,085 
Distributions(47,688)(319)(49,167)(495)
Equity-based compensation15,722 — 952,918 — 
Share issuance in connection with Strategic Revenue-Share Purchase331,903 — 331,903 — 
Settlement of Earnout Securities liability437,324 — 437,324 — 
Comprehensive loss(187,524)(1,292)(1,412,600)(3,069)
Ending Balance$3,766,031 $5,780 $3,766,031 $5,780 
Total Shareholders' Equity$5,181,593 $5,780 $5,181,593 $5,780 
Cash Dividends Paid per Class A Share$0.04 $ $0.04 $ 
4

Table of Contents
Blue Owl Capital Inc.
Consolidated and Combined Statements of Changes in Shareholders’ Equity (Deficit) (Unaudited)
(Prior to May 19, 2021, Owl Rock)
(Dollars in Thousands, Except Per Share Data) 
 Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Number of Class A Shares
Beginning balance320,005,258    
Impact of the Business Combination— — 320,005,258 — 
Share issuance in connection with Strategic Revenue-Share Purchase29,701,013 — 29,701,013 — 
Settlement of E-1 Earnout Securities7,495,432 — 7,495,432 — 
Ending Balance357,201,703  357,201,703  
Number of Class C Shares
Beginning balance628,380,707    
Impact of the Business Combination— — 628,380,707 — 
Settlement of E-1 Earnout Securities30,266,653 — 30,266,653 — 
Ending Balance658,647,360  658,647,360  
Number of Class D Shares
Beginning balance294,656,373    
Impact of the Business Combination— — 294,656,373 — 
Settlement of E-1 Earnout Securities12,237,877 — 12,237,877 — 
Ending Balance306,894,250  306,894,250  
Number of Class E Shares
Beginning balance14,990,864    
Impact of the Business Combination— — 14,990,864 — 
Settlement of E-1 Earnout Securities(7,495,432)(7,495,432)— 
Ending Balance7,495,432  7,495,432  
The accompanying notes are an integral part of these consolidated and combined financial statements.
5

Table of Contents
Blue Owl Capital Inc.
Consolidated and Combined Statements of Cash Flows (Unaudited)
(Prior to May 19, 2021, Owl Rock)
(Dollars in Thousands)
  Nine Months Ended September 30,
 20212020
Cash Flows from Operating Activities
Consolidated and combined net loss$(1,788,853)$(31,194)
Adjustments to reconcile consolidated and combined net loss to net cash from operating activities:
Amortization of intangible assets67,527  
Equity-based compensation1,174,319 12,300 
Depreciation and amortization of fixed assets456 689 
Amortization of debt discounts and deferred financing costs1,125 556 
Amortization of investment discounts and premiums451  
Non-cash lease expense625  
Net losses on retirement of debt16,145  
Net (gains) losses on investments, net of dividends185  
Change in TRA liability5,879  
Change in warrant liability42,762  
Change in Earnout Securities liability756,092  
Deferred income taxes(43,793) 
Changes in operating assets and liabilities:
Due from related parties(78,209)(4,292)
Strategic Revenue-Share Purchase consideration(49,563) 
Other assets, net(8,480)(2,831)
Accrued compensation48,685 17,612 
Accounts payable, accrued expenses and other liabilities(17,983)(10,393)
Net Cash Provided by (Used in) Operating Activities127,370 (17,553)
Cash Flows from Investing Activities
Purchase of fixed assets(2,043)(328)
Purchase of investments(304,221) 
Proceeds from investment sales and maturities5,613  
Cash consideration paid for Dyal Capital, net of cash consideration received(973,457) 
Net Cash Used in Investing Activities(1,274,108)(328)
Cash Flows from Financing Activities
Cash proceeds from the Business Combination1,738,603  
Offering costs related to the Business Combination(126,423) 
Acquisition of noncontrolling interests in the Blue Owl Operating Group in connection with the Business Combination(491,956) 
Proceeds from debt obligations896,008 125,313 
Debt issuance costs(9,862)(405)
Repayments of debt obligations, including prepayment costs(577,713)(88,846)
Contributions from members prior to the Business Combination 7,072 
Dividends paid on Class A Shares(13,100) 
Distributions to members prior to the Business Combination(103,144)(25,320)
Contributions from noncontrolling interests10,737  
Distributions to noncontrolling interests(49,167) 
Net Cash Provided by Financing Activities1,273,983 17,814 
Net Increase (Decrease) in Cash and Cash-equivalents127,245 (67)
Cash and cash-equivalents, beginning of period11,630 7,343 
Cash and Cash-equivalents, End of Period$138,875 $7,276 
Supplemental Information
Cash paid for interest$13,822 $13,638 
Cash paid for income taxes$4,355 $ 
The accompanying notes are an integral part of these consolidated and combined financial statements.
6

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)

1. ORGANIZATION
Blue Owl Capital Inc. (the “Registrant”), a Delaware corporation, together with its consolidated subsidiaries (collectively, the “Company” or “Blue Owl”), is a leading alternative asset management firm that provides investors access to asset management capital solutions through its Direct Lending and GP Capital Solutions products. The Company’s breadth of offerings and permanent capital base enables it to offer a differentiated, holistic platform of capital solutions to both middle market companies and large alternative asset managers. The Company provides these solutions through permanent capital vehicles, and long-dated private funds, which underly a high degree of earnings stability and predictability of the Company’s business.
The Registrant was initially incorporated in the Cayman Islands as Altimar Acquisition Corporation (“ALT”), a special purpose acquisition company. Pursuant to the Business Combination Agreement dated December 23, 2020, as amended, modified, supplemented or waived from time to time, (the “Business Combination Agreement”), on May 19, 2021 (“Business Combination Date”) (i) ALT was redomiciled as a Delaware corporation and changed its name to Blue Owl Capital Inc., (ii) ALT merged with Owl Rock (as defined below) and (iii) the Company acquired Dyal Capital Partners (“Dyal Capital”), a former division of Neuberger Berman Group LLC (the “Dyal Acquisition”) (collectively, the “Business Combination”). As further discussed in Note 2, for both the ALT merger and the Dyal Acquisition, Owl Rock was deemed to be the acquirer for accounting purposes. Therefore, the predecessor to Blue Owl is “Owl Rock,” a combined carve-out of Owl Rock Capital Group LLC and Blue Owl Securities LLC (formerly, Owl Rock Capital Securities LLC) (“Securities”).
The Company’s primary sources of revenues are management fees, which are generally based on the amount of the Company’s fee-paying assets under management. The Company generates substantially all of its revenues in the United States. The Company operates through one operating and reportable segment. This single reportable segment reflects how the chief operating decision makers allocate resources and assess performance under the Company’s “one-firm approach,” which includes operating collaboratively across product lines, with predominantly a single expense pool.
The Company conducts its operations through Blue Owl Capital Holdings LP (“Blue Owl Capital Holdings”) and Blue Owl Capital Carry LP (“Blue Owl Carry”). Blue Owl Holdings and Blue Owl Carry are referred to, collectively, as the “Blue Owl Operating Partnerships,” and collectively with their consolidated subsidiaries, as the “Blue Owl Operating Group.” The Registrant holds its controlling financial interests in the Blue Owl Operating Group indirectly through Blue Owl Capital GP LLC (“Blue Owl GP”), a wholly owned subsidiary of the Registrant.
Capital Structure
The Registrant has the following share classes and other instruments outstanding:
Class A Shares—Shares of Class A common stock that are publicly traded and entitle the holders to one vote per share on all matters submitted to a vote of shareholders. The Class A Shareholders are entitled to distributions declared on the Class A Shares by the Registrant’s board of directors (the “Board”).
Class B Shares—Shares of Class B common stock that are not publicly traded. Class B Shareholders are entitled to a number of votes per share that when combined with Class D Shares, equal 90% of the total voting power of all shares. The Class B Shareholders are entitled to distributions declared on the Class B Shares by the Board. No Class B Shares have been issued as of September 30, 2021. Common Units (as defined below) held by certain senior members of management (“Principals”) are exchangeable on a one-for-one basis for Class B Shares.
Class C Shares—Shares of Class C common stock that are not publicly traded. Class C Shareholders are entitled to one vote per share on matters submitted to a vote of shareholders. The Class C Shareholders do not participate in the earnings of the Registrant, as the holders of such shares participate directly in the economics of the Blue Owl Operating Group through their Common Units holdings. For every Common Unit held by non-Principals, one Class C Share is issued to such holder to grant them a corresponding voting interest in the Registrant.
7

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
Class D Shares—Shares of Class D common stock that are not publicly traded. Class D Shareholders are entitled to a number of votes per share that when combined with Class B Shares, equal 90% of the total voting power of all shares. The Class D Shareholders do not participate in the earnings of the Registrant, as the holders of such shares participate directly in the economics of the Blue Owl Operating Group through their Common Units holdings. For every Common Unit held by Principals, one Class D Share is issued to such holder to grant them a corresponding voting interest in the Registrant.
Class E Shares—Shares of Class E common stock that are not publicly traded. Class E Shareholders are not entitled to a vote. Class E Shares accrue distributions equal to amounts declared per Class A Share; however, such distributions are paid if and when Triggering Events (defined below) have been met. Class E Shares and Seller Earnout Units (defined below) are collectively referred to as “Earnout Securities.”
In connection with the Business Combination, the Company issued two series of Class E Shares: Series E-1 and Series E-2. Series E-1 and E-2 vest upon a “Triggering Event,” which occurs upon the earlier of (i) the volume weighted-average price of Class A Share exceeds $12.50 or $15.00 per share, respectively, for any 20 consecutive trading days; or (ii) the consideration payable per share of Class A Shares or per Blue Owl Operating Group Units (as defined below) in connection with a merger, consolidation, tender offer, exchange offer or business combination or sale of all or substantially all of the Company’s assets exceeds $12.50 or $15.00 per share, respectively. Any Class E Shares that have not vested by the fifth anniversary of the completion of the Business Combination Date will automatically be cancelled.
The Series E-1 Class E Shares had a Triggering Event on July 21, 2021, as the volume weighted average Class A Share price exceeded $12.50 per share for 20 consecutive trading days. As a result, 7,495,432 Class E Shares were converted into an equal number of Class A Shares.
The Series E-2 Class E Shares had a Triggering Event on November 3, 2021. Please see Note 14 for additional details.
RSUs—The Company grants Class A restricted share units (“RSUs”) to its employees and independent Board members. An RSU entitles the holder to receive a Class A Share, or cash equal to the fair value of a Class A Share at the election of the Board, upon completion of a requisite service period. All of the RSUs granted as of the date of this report do not accrue dividend equivalents. No RSUs were issued prior to the Business Combination. RSU grants are accounted for as equity-based compensation. See Note 8 for additional information.
Warrants—In connection with the Business Combination, the Company has issued and outstanding warrants to purchase Class A Shares at a price of $11.50 per share. The warrants expire five years from the completion of the Business Combination and are exercisable starting October 22, 2021. A portion of the outstanding warrants are held by the sponsor of ALT (“Private Placement Warrants”) and the remaining warrants are held by other third-party investors (“Public Warrants”).
Once the warrants become exercisable, the Company may redeem for $0.01 per warrant the outstanding Public Warrants if the Company’s Class A Share price equals or exceeds $18.00 per share, subject to certain conditions and adjustments.
If the Company’s Class A Share price is greater than $10.00 per share but less than $18.00 per share, then the Company may redeem the Public Warrants for $0.10 per warrant, subject to certain conditions and adjustments. Holders may elect to exercise their warrants on a cashless basis.
8

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
The following table presents the number of shares of the Registrant, RSUs and warrants that were outstanding as of September 30, 2021:
September 30, 2021
Class A Shares357,201,703 
Class C Shares 658,647,360 
Class D Shares306,894,250 
Class E Shares - Series E-27,495,432 
RSUs9,050,000 
Warrants14,159,381 
The Blue Owl Operating Partnerships have the following equity interests outstanding as of September 30, 2021, which interests along with any future interests issued by the Blue Owl Operating Partnerships (unless context requires otherwise) are collectively referred to as “Blue Owl Operating Group Units”:
GP Units—The Registrant indirectly holds a general partner interest and all of the GP Units in each of the Blue Owl Operating Partnerships. The GP Units are equity interests in the Blue Owl Operating Partnerships that represent the Registrant’s economic ownership in the Blue Owl Operating Group. For each Class A Share and Class B Share outstanding, the Registrant indirectly holds an equal number of GP Units. References to GP Units refer collectively to a GP Unit in each of the Blue Owl Operating Partnerships as well as any Common Units (as defined below) held directly or indirectly by the Registrant.
Common Units—Common Units are limited partner interests held by certain members of management, employees and other third parties in the Blue Owl Operating Partnerships. Subject to certain restrictions, Common Units are exchangeable on a one-for-one basis for either Class A Shares if held by a non-Principal or Class B Shares if held by a Principal. Common Unit exchanges may be settled in cash only at the election of the Company’s Exchange Committee, which is comprised of independent members of the Board, and can only be funded from proceeds of a new permanent equity offering. Common Units held by non-Principals are exchangeable for shares of the Registrant after the six-month anniversary of the Business Combination Date. Common Units held by Principals are exchangeable after the two-year anniversary of the Business Combination Date. References to Common Units refer collectively to a Common Unit in each of the Blue Owl Operating Partnerships. Upon an exchange of Common Units for an equal number of Class A or B Shares, a corresponding number of Class C or D Shares, as applicable, will be cancelled.
Seller Earnout Units—Seller Earnout Units are interests held in the Blue Owl Operating Partnerships that have the same Triggering Events, forfeiture provisions and distribution restrictions as the Class E Shares. In connection with the Business Combination, recipients of Earnout Securities had the option of selecting either Class E Shares or Seller Earnout Units. For recipients that elected to receive Class E Shares, a corresponding number of Seller Earnout Units are indirectly held by the Registrant. Upon meeting the respective Triggering Events, Seller Earnout Units not held directly or indirectly by the Registrant automatically become Common Units, whereas the Seller Earnout Units held directly or indirectly by the Registrant automatically become GP Units.
The Series E-1 Seller Earnout Units had a Triggering Event on July 21, 2021. As a result, (i) 7,495,432 Seller Earnout Units underlying an equal number of Series E-1 Class E Shares were converted into an equal number of GP Units, (ii) 42,504,530 Seller Earnout Units were converted into an equal number of Common Units, and (iii) 42,504,530 non-economic, voting shares of the Registrant were issued to the holders of the converted Common Units (30,266,653 Class C Shares and 12,237,877 Class D Shares).
The Series E-2 Seller Earnout Units had a Triggering Event on November 3, 2021. Please see Note 14 for additional details.
9

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
The following table presents the number of Blue Owl Operating Group Units that were outstanding as of September 30, 2021:
UnitsSeptember 30, 2021
GP Units357,201,703 
Common Units965,541,610 
Seller Earnout Units - Series E-2(1)
49,999,962 
(1)Includes 7,495,432 units held indirectly by the Registrant, representing the indirect pro rata economic interests of Series E-2 Class E Shares in the Blue Owl Operating Group.
Share Repurchase Program
On May 19, 2021, Blue Owl’s Board authorized the repurchase of up to $100.0 million of Class A Shares. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and will terminate upon the earlier of May 19, 2022 and the purchase of all shares available under the repurchase program. As of September 30, 2021, the Company had not repurchased any of its Class A Shares.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
These unaudited, interim, consolidated and combined financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). All intercompany transactions and balances have been eliminated in consolidation and combination. The notes are an integral part of the Company’s consolidated and combined financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the Company’s unaudited, interim, consolidated and combined financial statements have been included and are of a normal and recurring nature. The Company’s comprehensive income (loss) is comprised solely of consolidated and combined net income (i.e., the Company has no other comprehensive income).
Prior to the Business Combination, Blue Owl’s financial statements were prepared on a consolidated and combined basis. As part of the Business Combination, Securities was contributed to the Blue Owl Operating Group. Following the Business Combination, the financial statements are prepared on a consolidated basis. The consolidated and combined financial statements of Blue Owl should be read in connection with the consolidated and combined financial statements of Owl Rock as of December 31, 2020 included in the Company’s Current Report on Form 8-K, relating to the Business Combination, filed with the SEC on May 21, 2021.
The merger between Owl Rock and ALT was accounted for as a reverse asset acquisition, with no step-up to fair value on any assets or liabilities, and therefore no goodwill or other intangible assets were recorded. The Dyal Acquisition was accounted for using the acquisition method of accounting. The Company recorded the fair value of the net assets acquired as of the Business Combination Date. Operating results for Dyal Capital are included starting from the Business Combination Date. See Note 3 for additional information regarding the Dyal Acquisition.
During the third quarter of 2021, the Company began presenting investments separately on its consolidated and combined statements of financial condition. Prior period amounts have been reclassified to conform to the current period presentation.
10

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make assumptions and estimates that affect the amounts reported in the consolidated and combined financial statements of the Company. The most critical of these estimates are related to (i) the fair value of the investments held by the products the Company manages, as for many products, this impacts the amount of revenues the Company recognizes each period; (ii) the fair values of the Company’s investments and liabilities with respect to the TRA (the portion considered contingent consideration), warrants and Earnout Securities, as changes in these fair values have a direct impact on the Company’s consolidated and combined net income (loss); (iii) the estimate of future taxable income, which impacts the realizability and carrying amount of the Company’s deferred income tax assets; (iv) the qualitative and quantitative assessments of whether impairments of acquired intangible assets and goodwill exist; and (v) the determination of whether to consolidate a variable interest entity (“VIE”). Inherent in such estimates and judgements relating to future cash flows, which include the Company’s interpretation of current economic indicators and market valuations, and assumptions about the Company’s strategic plans with regard to its operations. While management believes that the estimates utilized in preparing the consolidated and combined financial statements are reasonable and prudent, actual results could differ materially from those estimates.
Principles of Consolidation
The Company consolidates those entities in which it has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. The Company determines whether an entity should be consolidated by first evaluating whether it holds a variable interest in the entity. Entities that are not VIEs are further evaluated for consolidation under the voting interest model (“VOE”).
An entity is considered to be a VIE if any of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) the holders of equity investment at risk, as a group, lack either the direct or indirect ability through voting rights or similar rights to make decisions that have a significant effect on the success of the entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some equity investors are disproportionate to their obligation to absorb losses of the entity, their rights to receive returns from an entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor with disproportionately few voting rights.
Fees that are customary and commensurate with the level of services provided by the Company, and where the Company does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered a variable interest. The Company factors in all economic interests, including proportionate interests through related parties, to determine if fees are considered a variable interest. Where the Company’s interests in funds are primarily management fees, incentive fees, and insignificant direct or indirect equity interests through related parties, the Company is not considered to have a variable interest in such entities.
The Company consolidates all VIEs for which it is the primary beneficiary. An entity is determined to be the primary beneficiary if it holds a controlling financial interest, which is defined as having (a) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The Company does not consolidate any of the products it manages as it does not hold any direct or indirect interests in such entities that could expose the Company to an obligation to absorb losses of an entity or the right to receive benefits from an entity that could potentially be significant to such entities.
11

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and continuously reconsiders that conclusion. In evaluating whether the Company is the primary beneficiary, the Company evaluates its direct and indirect economic interests in the entity. The consolidation analysis is generally performed qualitatively, however, if the primary beneficiary is not readily determinable, a quantitative analysis may also be performed. This analysis requires judgment, including: (1) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (2) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the success of the entity, (3) determining whether two or more parties’ equity interests should be aggregated, (4) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity and (5) evaluating the nature of relationships and activities of the parties involved in determining which party within a related-party group is most closely associated with a VIE and therefore would be deemed the primary beneficiary.
Under the voting interest model, the Company consolidates those entities it controls through a majority voting interest. The Company will generally not consolidate those VOEs where a single investor or simple majority of third-party investors with equity have the ability to exercise substantive kick-out or participation rights.
Cash and Cash Equivalents
The Company considers highly-rated liquid investments that have an original maturity of three months or less from the date of purchase to be cash equivalents. As of September 30, 2021 and December 31, 2020, the Company holds the majority of its cash balances with a single financial institution and such balances are in excess of Federal Deposit Insurance Corporation insured limits, which exposes the Company to a certain degree of credit risk concentration.
Investments
Investments are primarily comprised of investments for which the Company has elected the fair value option in order to simplify the accounting for these instruments, and therefore changes in unrealized gains or losses are included in current-period earnings. Such elections are irrevocable and are applied on an investment-by-investment basis at initial recognition. Realized and changes in unrealized gains (losses) on these investments are included within net gains (losses) on investments in the consolidated and combined statements of operations. Investments for which the Company has not elected the fair value option are primarily comprised of equity-method in its products. See Note 9 for additional information.
Leases
Right-of-use assets and liabilities related to operating leases are included within operating lease assets and operating lease liabilities, respectively, in the Company’s consolidated and combined statements of financial condition.
The Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), as amended, on January 1, 2021 (“ASC 842”). The Company did not restate prior periods and there were no adjustments to retained earnings upon adoption of ASC 842. The Company applied the package of practical expedients permitted under the transition guidance within the new standard, including carrying forward the historical lease classification and not reassessing whether certain costs capitalized under the prior guidance are eligible for capitalization under ASC 842. The adoption of ASC 842 resulted in the recognition of $13.8 million of operating lease assets and $14.4 million of operating lease liabilities, with the net of these amounts offsetting the deferred rent credit liability in existence immediately prior to adoption.
The Company determines if an arrangement is a lease at inception. Right-of-use lease assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Right-of-use lease assets represent the Company’s right to use a leased asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company does not recognize right-of-use lease assets and lease liabilities for leases with an initial term of one year or less.
12

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
As the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments. The determination of an appropriate incremental borrowing rate requires judgment. The Company determines its incremental borrowing rate based on data for instruments with similar characteristics, including recently issued debt, as well as other factors.
The operating lease assets include any lease payments made and lease incentives. Lease terms include options to extend or terminate when it is reasonably certain that the Company will exercise that option. In addition, the Company separates lease and non-lease components embedded within lease agreements. Lease expense for operating lease payments is recognized on a straight-line basis, which consists of amortization of right-of-use assets and interest accretion on lease liabilities, over the lease term and included within general, administrative and other expenses in the consolidated and combined statements of operations. The Company does not have any material finance leases.
Strategic Revenue-Share Purchase Consideration
On September 20, 2021, the Company entered into three Agreements of Purchase and Sale (the “Strategic Revenue-Share Purchase”), whereby certain fund investors relinquished their rights to receive management fee shares with respect to certain existing and future GP Capital Solutions products. In exchange for the foregoing and additional commitments to certain products, the Registrant issued 29,701,013 Class A Shares with a fair value of $455.0 million and paid cash of $50.2 million (net of previously accrued management fee shares payable) to such fund investors. On October 18, 2021, the Company filed a resale registration statement on Form S-1 to register the 29,701,013 Class A Shares.
The Company determined that it was not receiving a distinct good or service from the customers as a result of the Strategic Revenue-Share Purchase, and as such, determined that the consideration paid to the customers represents a reduction of the transaction price and, therefore, a reduction to revenue. Accordingly, the total consideration paid was recorded as an asset in the Company’s consolidated statements of financial condition and is amortized as a reduction of management fees, net in the Company’s consolidated statements of operations. See Note 6 for additional information.
Intangible Assets, Net and Goodwill
The Company recognized certain finite-lived intangible assets and goodwill as a result of the Dyal Acquisition. The Company’s finite-lived intangible assets consist of contractual rights to earn future management fees from the acquired investment management agreements and value associated with the acquired institutional client relationships and trademarks. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives.
The Company tests finite-lived intangible assets for impairment if certain events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable. The Company evaluates impairment by comparing the estimated fair value attributable to the intangible asset with its carrying amount. If an impairment exists, the Company adjusts the carrying value to equal the fair value by taking a charge through earnings. No impairments have been recognized to-date on the Company’s acquired intangible assets.
Goodwill represents the excess of consideration over identifiable net assets of an acquired business. The Company tests goodwill annually for impairment. If, after assessing qualitative factors, the Company believes that it is more-likely-than-not that the fair value of the reporting unit inclusive of goodwill is less than its carrying amount, the Company will perform a quantitative assessment to determine whether an impairment exists. If an impairment exists, the Company adjusts the carrying value of goodwill so that the carrying value of the reporting unit is equal to its fair value by taking a charge through earnings. The Company also tests goodwill for impairment in other periods if an event occurs or circumstances change such that it is more-likely-than-not to reduce the fair value of the reporting unit below its carrying amount. No impairments have been recognized to-date on the Company’s goodwill.
See Note 3 for additional information.
13

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
Fixed Assets
Fixed assets are recorded at cost, less accumulated depreciation and amortization, and are included within other assets, net in the Company’s consolidated and combined statements of financial condition. Fixed assets are depreciated or amortized on a straight-line basis, with the corresponding depreciation and amortization expense included within general, administrative and other expenses in the Company’s consolidated and combined statements of operations. The estimated useful life for leasehold improvements is the lesser of the remaining lease term and the life of the asset, while other fixed assets are generally depreciated over a period of two to seven years. Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Debt Obligations, Net
The Company’s debt obligations, other than revolving credit facilities, are recorded at amortized cost, net of any debt issuance costs, discounts and premiums. Debt issuance costs are deferred and along with discounts and premiums are amortized to interest expense in the consolidated and combined statements of operations over the life of the related debt instrument using the effective interest method. Unamortized debt issuance costs, discounts and premiums are written off to net losses on retirement of debt in the consolidated and combined statements of operations when the Company prepays borrowings prior to maturity. The Company defers debt issuance costs associated with revolving credit facilities and presents them within other assets, net in the consolidated and combined statements of financial condition, and such amounts are amortized to interest expense in the consolidated and combined statements of operations on a straight-line basis over the life of the related facility.
TRA Liability
The tax receivable agreement (“TRA”) liability represents amounts payable to certain pre-Business Combination equity holders of Owl Rock and Dyal Capital. A portion of the TRA liability related to the Dyal Acquisition is deemed contingent consideration payable to the previous owners of Dyal Capital, and therefore is carried at fair value, with changes in fair value reported within other loss in the consolidated and combined statements of operations. The remaining portion of the TRA is carried at a value equal to the expected future payments due under the TRA. The Company recorded its initial estimate of future payments under the TRA that is not related to the Dyal Acquisition as a decrease to additional paid-in capital and an increase in TRA liability in the consolidated and combined financial statements. Subsequent adjustments to the liability for future payments under the tax receivable agreement related to changes in estimated future tax rates or state income tax apportionment are recognized through current period earnings in the consolidated and combined statements of operations. See Note 11 for additional information.
Warrant Liability
The Company’s warrants are recorded as liabilities carried at fair value, with changes in fair value included within other loss in the Company’s consolidated and combined statements of operations.
The Private Placement Warrants contain exercise and settlement features that may change with a change in the holder, which precludes the Private Placement Warrants from being considered indexed to the Company’s own stock, and therefore the Private Placement Warrants are precluded from being classified within equity and are accounted for as derivative liabilities.
The Public Warrants include a provision that, in the event of a tender offer or exchange offer made to and accepted by holders of more than 50% of the outstanding Class A Shares, all holders of the warrants would be entitled to receive cash for their warrants. Such an event would not constitute a change in control because the Class A Shares do not represent a majority of the Registrant’s voting shares. Accordingly, the Public Warrants are also precluded from being classified within equity and are accounted for as derivative liabilities. This provision also applies to the Private Placement Warrants.
14

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
Earnout Securities Liability
Earnout Securities issued in connection with the Dyal Acquisition to the former owners of Dyal who are not part of the continuing management team are treated as contingent consideration and are not considered indexed to the Company’s equity. Similarly, Earnout Securities issued to certain former owners of Owl Rock are not considered indexed to the Company’s equity. These Earnout Securities are accounted for as a liability carried at fair value, with changes in fair value included within other loss in the Company’s consolidated and combined statements of operations. Once recognized, the contingent earnout liability is not derecognized until the contingency is resolved and the consideration is paid or becomes payable.
Earnout Securities issued to certain employees in connection with the Business Combination were treated as compensation for post-combination employment services and accounted for as equity-based compensation. See Note 8 for additional information on these Earnout Securities.
Noncontrolling Interests
Noncontrolling interests are primarily comprised of Common Units and Seller Earnout Units, which are interests in the Blue Owl Operating Group not held by the Company. Allocations to these interests in the consolidated and combined statements of operations are based on the substantive profit-sharing arrangements in the operating agreements of the Blue Owl Operating Partnerships, and to the extent that such allocations are not provisional in nature, as is the case for the Seller Earnout Units, as any allocations to these interests (other than certain minimum tax distributions) would be subject to reversal in the event the Seller Earnout Units do not achieve a Triggering Event and are canceled. Additionally, certain consolidated subsidiaries of the Blue Owl Operating Group are partially owned by third-party investors. Such interests are also presented as noncontrolling interests.
Revenue Recognition
Revenues consist of management fees and administrative, transaction and other fees. The Company recognizes revenues when such amounts are probable that a significant reversal would not occur. The Company recognizes revenue at the time of transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services (i.e., the transaction price). Under this method, revenue is based on a contract with a determinable transaction price and distinct performance obligations with probable collectability. Revenues cannot be recognized until the performance obligations are satisfied and control is transferred to the customer.
Management Fees, Net
Management fees are recognized over the period in which the investment management services are performed because customers simultaneously consume and receive benefits continuously over time. Payment terms and fee rates of management fees vary by product but are generally collected on a quarterly basis and are not subject to clawback.
Management fees for the Company’s business development company (“BDC”) products are typically based on a percentage of average fair value of gross assets excluding cash. For certain BDCs, the management fee base may also include uncalled capital commitments. For the Company’s other Direct Lending products, management fees are typically based on gross or net asset value or investment cost, and also may include uncalled capital.
Management fees also include a fee based on the net investment income of the Company’s BDCs and similarly structured products (“Part I Fees”), which are subject to performance hurdles. Such Part I Fees are classified as management fees in the consolidated and combined statements of operations as they are predictable and recurring in nature, not subject to repayment and cash-settled each quarter.
Management fees for the Company’s GP minority equity investments strategy are generally based on a percentage of capital committed during the investment period, and thereafter generally based on the cost of unrealized investments. For the other GP Capital Solutions strategies, management fees are generally determined based on a percentage of investment cost.
15

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
Because management fees, including Part I Fees, are generally cash settled every quarter, the uncertainty underlying these fees are resolved each quarter. As such, on a quarterly basis, a subsequent significant reversal in relation to the cumulative revenue recognized is not probable for the quarter in arrears.
As discussed above, amortization of the Strategic Revenue-Share Purchase consideration is recorded as a reduction of management fees, net in the Company’s consolidated and combined statements of operations.
Administrative, Transaction and Other Fees
Administrative, transaction and other fees primarily include fee income, administrative fees and dealer manager revenue.
Fee income is earned for services provided to portfolio companies, which may include arrangement, syndication, origination, structuring analysis, capital structure and business plan advice and other services. The fees are generally recognized as income at the point in time when the services rendered are completed, as there is no ongoing performance requirement.
Administrative fees represent expenses incurred by certain professionals of the Company and reimbursed by products managed by the Company. The Company may incur certain costs in connection with satisfying its performance obligations under administrative agreements – including, but not limited to, employee compensation and travel costs – for which it receives reimbursements from the products it manages. The Company reports these expenses within compensation and benefits and general, administrative and other expenses and reports the related reimbursements as revenues within administrative, transaction and other fees (i.e., on a gross basis) in the consolidated and combined statements of operations.
Dealer manager revenue consists of commissions earned for providing distribution services to certain products. Dealer manager revenue is recorded on an accrual basis at the point in time when the services are completed, as there is no ongoing performance requirement.
The Company is also entitled to receive certain incentive income in the form of incentive fees and carried interest from the products that it manages. Incentive income is based on the investment performance generated over time, subject to the achievement of minimum return levels in certain products. Incentive fees from the Company’s BDCs and certain products within the GP debt financing strategy are realized at the end of a measurement period, typically quarterly or annually. Once realized, such incentive fees are no longer subject to reversal.
For certain non-BDC Direct Lending products and substantially all of the GP Capital Solutions products, incentive income is in the form of carried interest that is allocated to the Company based on cumulative fund performance over time, subject to the achievement of minimum return levels in certain products. The Company recognizes carried interest only to the extent that it is not probable that a significant reversal will occur for amounts recognized. Generally carried interest is earned after a return of all contributions and may be subject to a preferred return to investors; however, the Company is able to catch-up amounts subject to the preferred return in certain cases. Substantially all of the carried interest generated by the Company’s products is allocable to investors, including certain related parties, in vehicles in which the Company does not have a controlling financial interest, and therefore is not included in the Company’s consolidated and combined financial statements. The Company has not recognized any incentive income to-date.
Compensation and Benefits
Cash-Based Compensation
Compensation and benefits consist of salaries, bonuses, commissions, long-term deferral programs, benefits and payroll taxes. Compensation is accrued over the related service period.
16

Table of Contents
Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
Equity-Based Compensation
Equity-based compensation awards are reviewed to determine whether such awards are equity-classified or liability-classified. Compensation expense related to equity-classified awards is equal to their grant-date fair value and recognized on a straight-line basis over the service period. When certain settlement features require an award to be liability-classified, compensation expense is recognized over the service period, and such amount is adjusted at each balance sheet date through the settlement date to the then current fair value of such award.
The Company accounts for forfeitures on equity-based compensation arrangements as they occur. The Company recognizes deferred income tax benefits throughout the service period, based on the grant date fair value. Any tax deduction shortfall or windfall due to the difference between grant date fair value and the ultimate deduction taken for tax purposes is recognized at the time of vesting.
See Note 8 for additional information on the Company’s equity-based compensation plans.
Foreign Currency
The functional currency of the Company’s foreign consolidated subsidiaries is the U.S. dollar, as their operations are considered extensions of U.S. parent operations. Monetary assets and liabilities denominated in foreign currencies are remeasured into U.S. dollars at the closing rates of exchange on the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are remeasured into U.S. dollars using the historical exchange rate. The profit or loss arising from foreign currency transactions are remeasured using the rate in effect on the date of any relevant transaction. Gains and losses on transactions denominated in foreign currencies due to changes in exchange rates are recorded within general, administrative and other expenses.
Income Taxes
Prior to the Business Combination, the Company’s earnings were subject to New York City unincorporated business tax (“UBT”), as well as certain U.S. Federal and foreign taxes. Subsequent to the Business Combination, substantially all of the earnings of the Blue Owl Operating Group remain subject to New York City UBT and additionally, the portion of earnings allocable to the Registrant is subject to corporate tax rates at the Federal and state and local levels. Therefore, the amount of income taxes recorded prior to the Business Combination is not representative of the expenses expected in the future.
The computation of the effective tax rate and provision at each interim period requires the use of certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income that is subject to tax, permanent differences between the Company’s GAAP earnings and taxable income, and the likelihood of recovering deferred tax assets existing as of the balance sheet date. The estimates used to compute the provision for income taxes may change throughout the year as new even