How Blue Owl Capital's $7 Billion Meta Data Center Deal Has Changed Its Digital Infrastructure Story (OWL)

• Meta Platforms and funds managed by Blue Owl Capital recently announced a joint venture to develop and own the Hyperion data center campus, with Blue Owl investing US$7 billion for an 80% stake and Meta retaining 20% ownership, targeting a total development cost of approximately US$27 billion.
• This collaboration highlights Blue Owl's growing presence in digital infrastructure and ability to deliver large-scale capital solutions, underscoring rising demand for next-generation data center assets supporting advanced AI ambitions.
• We'll examine how this major expansion into data centers through the Meta partnership could reshape Blue Owl Capital's digital infrastructure growth narrative.

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Blue Owl Capital Investment Narrative Recap

To be a shareholder in Blue Owl Capital, you need to believe in the company’s ability to scale permanent capital vehicles and capture demand for alternative credit, real assets, and high-growth sectors like digital infrastructure. The Meta Platforms Hyperion data center partnership highlights Blue Owl’s execution on this growth narrative, but does not resolve immediate investor concerns over short-term earnings volatility, fundraising timing, or relentless competition in private markets, which remain the key catalyst and risk factors.

The recent appointment of Greg Porteous to lead Defined Contribution Retirement Solutions stands out, as it connects Blue Owl’s expansion into new distribution channels for private market products with its drive for recurring management fee growth, an essential catalyst that supports long-term scalability alongside high-profile ventures like the Meta data center joint venture.

Yet, in contrast, investors should be aware that fierce competition from larger traditional and private market managers could challenge Blue Owl’s pricing power and margins if...

Read the full narrative on Blue Owl Capital (it's free!)

Blue Owl Capital's narrative projects $4.2 billion revenue and $5.1 billion earnings by 2028. This requires 17.5% yearly revenue growth and a $5.0 billion earnings increase from $75.4 million today.

Uncover how Blue Owl Capital's forecasts yield a $23.92 fair value, a 42% upside to its current price.

Exploring Other Perspectives

Community fair value estimates for Blue Owl Capital range from US$0.59 to US$28, gathering insight from six different Simply Wall St Community members. While you view these diverse perspectives, remember that ongoing competition and market share battles are critical issues for the company’s performance, consider reading several views before making conclusions.

Explore 6 other fair value estimates on Blue Owl Capital - why the stock might be worth less than half the current price!

Build Your Own Blue Owl Capital Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Blue Owl Capital research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Blue Owl Capital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Blue Owl Capital's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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