Podcast Summary: Bloomberg Talks – Blue Owl Capital Co-CEO Marc Lipschultz Talks Earnings
Episode Date: October 31, 2025

Overview

In this episode of Bloomberg Talks, the focus is on Blue Owl Capital’s recent quarterly performance, industry trends in private credit, the partnership with Meta on AI data centers, and the broader economic outlook. Co-CEO Marc Lipschultz offers insights into the firm’s growth, private vs. public market dynamics, and how retail sentiment is shaping the future of alternative investment vehicles.

Key Discussion Points & Insights

1. Blue Owl Capital's Record Growth and Disconnect in Market Reaction

[00:22 - 01:37]

• Earnings Highlights: Blue Owl reported a 21% YoY jump in Assets Under Management (AUM), with record fundraising results and a robust growth pipeline.
• Equity Price Disconnect: Despite strong organizational fundamentals, shares dipped post-earnings.
  • Lipschultz explains: The lag in fully reflecting recent acquisitions in year-over-year comps is “just simple math.” New businesses, like the digital infrastructure arm (IPI), boosted AUM but didn’t yet contribute a full year of results, temporarily skewing per-share metrics.
  • Quote: “As you look at our run rate, growth per share, it is continuing to accelerate and it continues to be incredibly robust.” – Marc Lipschultz (00:55)

2. The State of Private Credit: Risks, Returns, and Market Health

[01:46 - 03:53]

• Yield Dynamics: Danny raises industry concerns about market saturation, tighter spreads, and the decline in excess returns within private capital.
• Lipschultz’s Framework for Returns:
  • Credit Quality: “First and foremost, at the end of the day, the most important thing is that you're making good loans and getting paid back.” (02:07)
  • Base Rates: Observes uncertainty in rate cuts—market consensus often shifts.
  • Spreads: While spreads are tighter, they remain historically robust, with a consistent premium over traditional markets.
• Market Interrelation: Private and public markets can’t be viewed in isolation; broader economic trends affect all asset classes.
  • Quote: “We continue to deliver really outstanding investor results and that’s why we had record fundraising results.” – Marc Lipschultz (03:44)

3. Tech Partnerships, Meta, and AI Infrastructure

[03:53 - 05:32]

• Meta Collaboration: Discussion on the impact of Meta’s increased debt issuance and large-scale AI investments.
  • Lipschultz stresses the systemic importance of infrastructure to meet “ever-rising” AI demand.
  • The tech sector, he observes, is at historic highs precisely because of outsized AI infrastructure spending.
  • Quote: “The commentary is we don’t think we’re spending enough. Microsoft says we don’t actually have enough capacity to even fuel both AI and kind of our core business... That Rubicon is what creates the opportunity for great partnerships for us.” (04:47)

4. Labor Market Trends in Blue Owl’s Portfolio Companies

[05:32 - 06:48]

• Current Health: Across 400+ portfolio companies, revenue and earnings are growing at high single digits.
• On AI and Employment: While technology is improving productivity, there’s no evidence of systemic job cuts in their holdings.
  • Quote: “We are not hearing anything I would call systemic or dramatic at this point... It’s really more about efficiency, technology. It’s not about concern about the economy today.” – Marc Lipschultz (06:23)

5. Retail Investor Interest in Private Credit

[06:48 - 09:04]

• Retail Expansion: Blue Owl’s efforts to make private credit available to individual (retail) investors have met growing demand, even amid media “noise” about industry risk.
• Investor Wisdom: Individual investors, when assisted by reputable advisors, are proving perceptive and resilient.
• Systemic Health: Concerns about fraud or “cockroach” risks are anecdotal and not reflective of the broader, healthy ecosystem.
  • Quote:
    “Wealth flows are accelerating even now this month over last. … Actually, I think people are seeing through this noise and it is a lot of noise.” – Marc Lipschultz (07:46)
    “Remember you cannot believe that we have an unhealthy credit ecosystem and a healthy stock market. Those are not compatible ideas.” – Marc Lipschultz (08:51)

Notable Quotes & Memorable Moments

• On market reactions and earnings math:
  “As you look at our run rate, growth per share, it is continuing to accelerate…” (00:55)
• On the foundation of returns:
  “The most important thing is that you're making good loans and getting paid back.” (02:07)
• On tech companies’ AI spending:
  “We don’t think we’re spending enough [on infrastructure]. … That Rubicon... creates the opportunity for great partnerships for us.” (04:47)
• On labor market concern:
  “It’s really more about efficiency, technology. It’s not about concern about the economy today.” (06:23)
• On retail investor wisdom:
  “There’s incredible wisdom in the individual investor world... We are accelerating in wealth this month over last.” (07:46)
• On credit ecosystem health:
  “You cannot believe that we have an unhealthy credit ecosystem and a healthy stock market. Those are not compatible ideas.” (08:51)

Timestamps for Important Segments

• Intro and Earnings Results: 00:22 – 01:37
• Private Credit Returns and Market Trends: 01:46 – 03:53
• Tech Sector, Meta Partnership, and AI Infrastructure: 03:53 – 05:32
• Labor Market and Portfolio Company Health: 05:32 – 06:48
• Retail Investor Sentiment and Systemic Market View: 06:48 – 09:04

Podcast Tone & Takeaway

The discussion is pragmatic, data-driven, and optimistic about the fundamentals of private credit and infrastructure investing. Blue Owl’s leadership projects confidence in both institutional and retail investor understanding, dismissing media-driven fears and emphasizing long-term value creation and resilience across cycles.