Blue Owl Capital Reports Robust Q2 Performance

Growth fueled by successful merger integration and higher interest income, though offset by unrealized losses.

August 08, 2025

Blue Owl Capital Corporation Posts Strong Second Quarter on Higher Investment Income, Portfolio Growth

Blue Owl Capital wrapped up Q2 2025 with steady gains in investment income and asset growth, showing the impact of a larger portfolio following its January merger with Blue Owl Capital Corporation III. Investment income came in at $485.8 million for the quarter, up from $396.8 million a year ago. The driver: more interest income across both non-affiliated and controlled investments, supported by a broader, more diverse portfolio.

Assets rose to $17.4 billion by June 30, up from $13.9 billion at the end of 2024. Investment holdings now sit at $16.9 billion in fair value. That expansion reflects new allocations across sectors like healthcare, software, and consumer products—areas that continue to show strong demand for private credit. The number of common shares outstanding also increased significantly, a direct result of the OBDE merger earlier this year.

While total assets moved higher, net asset value per share edged down to $15.03 from $15.26. That change reflects a combination of share dilution and unrealized losses on certain holdings. The quarter included $89.8 million in net unrealized losses, most of it from changes in non-controlled investment valuations. Gains in controlled assets and currency translation helped soften that impact.

Rising Expenses, Stable Profitability

Operating expenses climbed to $266.8 million, up from $205.2 million a year earlier. Interest expense accounted for more than half of that total, alongside increased management and incentive fees tied to the firm’s larger asset base. Even with the higher costs, Blue Owl reported a 14% increase in net assets from operations, totaling $137.5 million for the quarter.

Integration Momentum and Strategic Positioning

The OBDE integration is already playing out in the numbers. With the combined portfolio in place, Blue Owl is positioned to lend at scale across a wider credit spectrum. The company is continuing to manage that growth while navigating external factors like:

• Interest rate volatility


• Inflation pressures


• Geopolitical uncertainty

The firm ended the quarter with $9.2 billion in outstanding debt and $189 million in distribution payables. Leverage remains a key part of its strategy, but management is mindful of the risks tied to current market conditions. The company also continues to invest in risk management, data security, and its regulatory status as a BDC and RIC.

Looking Ahead

Going forward, Blue Owl plans to build on this momentum—leveraging its expanded platform to deepen client relationships and respond quickly to shifts in the market. With a larger portfolio and disciplined approach, the firm is focused on delivering consistent performance while staying ahead of macro challenges.