Blue Owl CEO on Real Assets, AI Infrastructure, and Market Environment

Blue Owl's Real Assets Business

• 🚀 Blue Owl's real assets business is its fastest-growing segment, focusing on providing deep pools of long-term capital solutions.
• 💡 This segment is specifically targeting data centers, which require hundreds of billions of dollars to build the infrastructure for the AI future.

Abilene, Texas Data Center Project

• ⚡ A significant project is underway in Abilene, Texas, aiming to build a nearly 1000-megawatt complex of eight buildings.
• 🤝 This initiative involves partners like Crusoe and has garnered support from major players in the AI space, including Sam Altman of OpenAI, Masayoshi Son of SoftBank, and Oracle.
• 💰 Blue Owl's role in this complex is to be the capital provider, offering predictable, downside-protected returns to its institutional and individual investors.

Client Partnerships and Infrastructure

• 🏢 Blue Owl engages in long-dated partnerships with world-class companies like Oracle, Microsoft, and Amazon in the data center sector.
• ✨ The focus is on building transformative infrastructure that supports the growing demands of AI and technology.

Stock Performance and Market Conditions

• 📉 Blue Owl's stock saw a peak around January 24th and has since declined, partly due to global uncertainty and tariff headlines.
• 💡 Despite market volatility, the CEO believes the current environment is excellent for Blue Owl, as their business thrives on providing long-term capital solutions during times of uncertainty.
• 📊 The company's portfolio is in good shape, and their capital remains available for corporate partners.

Interest Rates and Business Impact

• 📈 In the floating rate business, higher interest rates are generally beneficial.
• 🎯 However, Blue Owl's primary goal is not for investors to take a position on rates, but to offer stable solutions.
• ⚠️ The CEO anticipates that higher for longer interest rates are a likely reality.