Blue Owl Beats Q4 EPS, Hits $300B AUM but Faces $48M Credit Loss
Blue Owl reported Q4 2025 EPS of $0.24, surpassing $300B in assets under management driven by $56B of new capital and announced a $0.92 annual dividend for 2026. Shares tumbled over 3% after disclosure of £36M ($48M) exposure to failed London bridging lender Century Capital, raising liquidity and credit concerns.
1. Strong Q4 Performance and AUM Milestone
Blue Owl delivered Q4 2025 earnings per share of $0.24, exceeding analyst expectations, and reported fee-related earnings of $0.96 per share for the full year, representing 19% growth. The firm surpassed $300 billion in assets under management after raising $56 billion of capital in 2025, reinforcing its scale and fee-generating capacity.
2. Exposure to Century Capital's Collapse
The firm disclosed a £36 million ($48 million) exposure to Century Capital Partners, a London-based bridging lender that entered administration with £95 million of debt. Blue Owl had financed the riskiest loan tranche, triggering over a 3% pre-market share decline and spotlighting private credit counterparty risks.
3. Liquidity Measures and Dividend Plan
In response to heightened redemption requests, Blue Owl suspended quarterly redemptions for its retail fund OBDC II and will instead return capital through periodic distributions funded by loan repayments, asset sales and strategic transactions. The company sold $1.4 billion of direct lending assets across three funds and announced a fixed annual dividend of $0.92 for 2026 to shore up liquidity and support investor returns.