How Blue Owl’s $850 Million Alternative Credit Launch Could Shape the Outlook for OWL Investors

• Blue Owl Capital recently announced the launch of the Blue Owl Alternative Credit Fund (OWLCX), its first interval fund designed to provide individual investors access to a broad spectrum of alternative credit assets, previously reserved primarily for institutions, and raised US$850 million at inception.
• This launch marks one of the largest debuts for an interval fund and highlights significant retail investor demand for private credit exposure previously limited to institutional channels.
• We'll explore how opening alternative credit to individual investors through OWLCX could impact Blue Owl's future growth potential and investment outlook.

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Blue Owl Capital Investment Narrative Recap

To be a Blue Owl Capital shareholder, you need to believe in the shift toward private credit and the ability of alternative asset managers to deliver stable, recurring revenue as new investor channels open. The launch of the US$850 million Blue Owl Alternative Credit Fund (OWLCX) further broadens access to private credit, supporting one of the biggest growth catalysts: increasing permanent capital vehicles. However, this move alone does not materially reduce Blue Owl's heavy reliance on continued fundraising momentum, which remains its most important short-term risk if inflows were to slow.

Among recent developments, Blue Owl's partnership with Voya Financial, which aims to create private market products for 401(k) retirement plans, stands out as highly relevant to the OWLCX launch. Both efforts open private credit investments to a larger base of individual investors, helping expand the total addressable market and reinforcing long-term fee and earnings growth opportunities.

But in contrast, one risk investors should pay close attention to is how a potential slowdown in fundraising could affect...

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

Blue Owl Capital's outlook anticipates $4.2 billion in revenue and $5.1 billion in earnings by 2028. This scenario assumes 17.5% annual revenue growth and a dramatic $5.02 billion increase in earnings from the current $75.4 million.

Uncover how Blue Owl Capital's forecasts yield a $23.92 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Fair value estimates from four Simply Wall St Community members range from just US$0.59 up to US$28, reflecting very different growth expectations. Consider how such varied views relate to Blue Owl Capital’s exposure to fluctuating fundraising conditions, which could significantly shape returns.

Explore 4 other fair value estimates on Blue Owl Capital - why the stock might be worth as much as 51% more than 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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