Blue Owl highlights diversification strategy as fundraising shifts beyond direct lending
Blue Owl Capital sought to reassure investors over the health of its business during its second-quarter earnings presentation, arguing that the firm’s growth is increasingly being driven by a broader alternative asset platform rather than its traditional direct lending franchise, according to a report by Bloomberg.
The alternative asset manager reported strong inflows during the first half of 2026, raising more than $16.5bn of equity capital, supported by demand from institutional investors across Europe, Australia and the Middle East.
Management also stressed that direct lending now represents a smaller share of the firm’s overall business. Co-chief executive Marc Lipschultz said the strategy accounts for around 35% of Blue Owl’s assets, compared with almost half two years ago, while wealth-focused direct lending products represent only around 11% of fee-paying assets.
Investors responded positively to the message, with Blue Owl’s shares rising around 6% following the earnings announcement.
Despite the upbeat tone, fundraising moderated during the second quarter. The firm raised $7.6bn during the three months to 30 June, compared with $12.1bn in the same period last year. Credit fundraising declined to $1.8bn, its lowest quarterly total in three years.
Blue Owl has been among the firms most closely watched during recent volatility in private credit markets, where rising redemption requests have prompted several managers to limit withdrawals from retail-focused vehicles.
Earlier this month, the firm again capped redemptions from two private credit funds after elevated withdrawal requests. However, executives said redemption pressures had eased during the second quarter, with the vast majority of investors in its $34 billion Blue Owl Credit Income Corp. maintaining their positions.
Financially, the firm reported fee-related earnings of $392.2m for the quarter, up 9% year-on-year and ahead of market expectations. Assets under management increased 12% from a year earlier to $319bn.
Investment activity slowed compared with last year, with Blue Owl originating $3.6bn of direct lending transactions and deploying a net $600m during the quarter, well below the prior year’s levels.
Chief financial officer Alan Kirshenbaum said the business appeared to be reaching a turning point, citing lower redemption activity and signs that fundraising conditions were beginning to improve.
Looking ahead, management highlighted opportunities to expand across digital infrastructure, real estate lending and broader alternative credit strategies, while also signalling the potential to introduce additional equity-focused investment products.
