Private Credit Portfolio Analysis | Blue Owl Capital Corp Reports Q3 2024 Results with Portfolio Growth and Increased Leverage
- Editor
- Nov 7, 2024
- 2 min read
What's New: Blue Owl Capital Corp's Q3 2024 financial results show a growing investment portfolio and increased leverage. The fund's total assets rose to $14.09 billion as of September 30, 2024, up from $13.51 billion at the end of 2023. This growth was primarily driven by an increase in investments owned at fair value, which reached $13.45 billion, compared to $12.71 billion at year-end 2023.
Portfolio Dynamics:
Total assets increased by 4.3% from $13.51 billion on December 31, 2023, to $14.09 billion on September 30, 2024.
Investments owned at fair value grew by 5.8% from $12.71 billion to $13.45 billion over the same period.
Cash and cash equivalents decreased significantly from $659.66 million to $481.32 million, indicating deployment of capital into investments.
Investment Activity :
The fund made new investments totaling $3.75 billion during the first nine months of 2024.
Proceeds from disposition of investments amounted to $3.11 billion in the same period.
Net investment activity resulted in a $641.56 million increase in investments owned at fair value.
Capital Structure:
Long-term debt increased by 9.4% from $7.08 billion to $7.74 billion between December 31, 2023, and September 30, 2024.
Total liabilities grew by 8.5% from $7.49 billion to $8.13 billion over the same period.
Stockholders' equity slightly decreased from $6.02 billion to $5.96 billion, indicating increased leverage.
Performance Profile:
Net income for Q3 2024 was $135.36 million, down from $206.94 million in Q3 2023.
Net Asset Value (NAV) per share decreased from $15.45 on December 31, 2023, to $15.28 on September 30, 2024.
Distributions declared for the first nine months of 2024 totaled $507.06 million, up from $452.68 million in the same period of 2023.
Risk & Quality:
The fund experienced unrealized losses on investments of $54.20 million for the first nine months of 2024, compared to gains of $106.47 million in the same period of 2023.
Realized losses on investments were $60.41 million for the first nine months of 2024, compared to $52.13 million in the same period of 2023.
The fund reported unrealized losses on derivatives of $28.68 million for the first nine months of 2024, up from $4.92 million in the same period of 2023.
The Wrap: Blue Owl Capital Corp's Q3 2024 results reflect a growing investment portfolio and increased leverage. While the fund expanded its asset base and investment activities, it faced challenges with unrealized and realized losses on investments. The decrease in NAV per share and lower quarterly net income compared to the previous year suggest potential headwinds in the current market environment. The fund's ability to maintain its distribution levels while managing investment risks will be crucial for its performance going forward.
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