• In the past week, Meta Platforms and funds managed by Blue Owl Capital announced a joint venture to develop and own the Hyperion data center campus, a project valued at approximately US$27 billion, with Blue Owl’s funds holding an 80% stake and contributing around US$7 billion in cash.
• This collaboration highlights Blue Owl’s ability to deploy substantial capital at scale in digital infrastructure, building on its recent track record of over US$5.5 billion GP stakes fund distributions and reinforcing investor confidence in its liquidity and fundraising capabilities.
• We’ll examine how Blue Owl’s large digital infrastructure investment with Meta impacts its investment outlook and future growth narrative.

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Blue Owl Capital Investment Narrative Recap

To own Blue Owl Capital, an investor needs to believe in its ability to capitalize on permanent capital vehicles and private market growth, especially across real assets and digital infrastructure. The Meta joint venture signals execution of this vision but does not materially change the near-term focus: sustaining robust fundraising and fee revenue while managing heightened competition and integration challenges, both key catalysts and risks for the business today.

Among recent announcements, the affirmation of Blue Owl’s quarterly dividend at US$0.225 per share stands out. It directly addresses shareholder priorities for stable income amid large capital deployments and fluctuating earnings, reinforcing investor expectations even as expansion into data centers increases balance sheet complexity and risk.

Yet in contrast, prospective investors should be aware of the risk that integration challenges from rapid expansion across new business lines…

Read the full narrative on Blue Owl Capital (it’s free!)

Blue Owl Capital’s narrative projects $4.2 billion revenue and $5.1 billion earnings by 2028. This requires 17.5% yearly revenue growth and an earnings increase of about $5.0 billion from $75.4 million currently.

Uncover how Blue Owl Capital’s forecasts yield a $23.73 fair value, a 47% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community estimate Blue Owl Capital’s fair value from as low as US$0.65 up to US$28 per share. With broad fundraising seen as a key earnings driver, consider how these differing convictions could impact your view of potential opportunity and risk.

Explore 6 other fair value estimates on Blue Owl Capital – why the stock might be worth less than half the current price!

Build Your Own Blue Owl Capital Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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