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We're going to turn now to the world of private credit. Blue Owl Capital reporting earnings this morning, matching estimates. We are joined now by Blue Owls co CEO Mark Lipschaltz for an exclusive interview. He was also just recently announced as a future co owner of the Tampa Bay Lightning NHL team. We are going to talk about that. To sports is a big asset class right now. But first with earnings. Private credit also a very big deal. Fourteen quarters in a row of growth you guys have had.
You're sitting at records when it comes to few related earnings and it was all born forward by that private credit boom in a big way. What does this look like moving forward, because when you talk to investors, there's a lot of question about how things change under a new interest rate scenario.
Well, thanks again for having me here today, and look, it's been a very very good chapter for Blue Awl. We have had fourteen consecutive quarters since we're in public. We have grown our fee related revenues at thirty five percent, We've grown our few related earnings at thirty two percent, and are dividend close to a thirty percent rate, and we're quite excited about the next chapter. You're absolutely right.
Our origin, our roots lie in this direct lending business which continues to grow and evolve, and its next phase ahead lies in places like asset back lending. There's new areas emerging around our real estate business, like hyper scale data centers. So actually the future is very very exciting from where we sit. We offer something different from many.
We don't offer all products to all people, but we offer what we believe are really the best of breeding products, market leaders in a set of products that are about downside protection, durability, and predictability. And that's what Blue All itself is about.
You know, when it comes to products itself, You guys have expanded very meaningfully through acquisition. You have made a number of acquisitions this year in a very quick timeframe. And I think when people look to the future, the question is are you going to spend now time integrating those assets or are you still looking to buy more.
Well, if the integration starts day one and befrankly long before we close. If you think about businesses we've already acquired, we've got full integration and ready to roll together as a team, You know, the thing about our acquisitions has been and I think we'll continue to be really marked by the following. You can you can build a product organic development, and we do that where we have a unique distinctive capability that just doesn't exist in the world.
So Triplent Lease our real estate strategy in Europe. We're already the market leader in the world in that business. We'll take it to Europe. But where there are other areas of opportunity that fit that DNA of downside protected income oriented products, then we want to look and say do you do you buy or do you build? And I think we've landed in this spot. That's a little
bit of the hybrid between the two. We work with and join forces with an incredible team, like in the case of Adalaiah having the team join IPI.
The team is joining.
We're not buying their business, we're combining with the business, and then together we're making that a bet better opportunity for the investors in the funds and for all shareholders by accelerating the growth.
You know, it's interesting you are a large private credit firm, real estate firm, private assets, but you're publicly traded and when you look at others in the industry. Apollo, for example, there's this pitch that public and private are going to converge, that private credit is something that can be more easily traded. They're even building a trading desk to make that possible. Do you think that that's true that all of a sudden you're going to look up one day and you
can't tell the difference between public and private. Is it possible to make these markets be more liquid?
So a couple observations, public and private I might prefer the room are increasingly adjacent, which is to say, there are certainly areas that are bringing them closer. Right, we have this whole family of continuously offered so called products. We're designed for individual access, customized, but the same investment experience as institutions, and so I think there's definitely, listen, increasing adjacency. But on the other hand, private markets are
private for a reason. Our whole value proposition to the user of our capital is, Look, you're going to pay us a premium, and you're going to sign up for a much more restrictive loan document and we're going to do deep diligence. But what we're going to give you is a long term partnership. So I don't really think we want to disable the sort of durable, long term planning of private solutions. It's part of what makes them
a private solution. The other observation I would share is this private solutions, if you want them in truly liquid form, it already exists. It an't exists. We started this ten years ago. We have a public BDC ORCC, and if you want to be a participant in direct lending in fully liquid form, you can buy that. So I'm not sure I know what problem we're trying to solve by creating a bunch of trading in a non traded underlying asset.
But I'm certainly true that they're getting more adjacent to each other.
I think it's a fascinating thing to talk about because you think about the large just trading desks on Wall Street. JP Morgan trying to make this happen, Goldman Sachs trying to make it happen. Do you think, especially if you're saying that these markets maybe are private for you said they're private for a reason, does that mean that those banks just will not have the supply because firms like you and aries won't offer it.
I mean, look where we are people that lend and hold the capital, and as you said, I think Aris and many others you'll follow similar strategies. Again, I don't think it's not our mission to seek liquidity in the asset. Our mission is to make really great long term loan decisions or long term commitments to GPS in the case of our GP stakes business, or to Amazon if we're going to be their partner and developing a warehouse, and so I don't really think that we're seeking liquidity. Our
job is to be their durable partner. We're in a premium for that, our investors are in a premium for that. So I think we're quite happy with the structure of the market.
So another place you recently went into, I want to get your thoughts on this because we're sitting in the middle of big tech earnings, a lot of conversation about CAPEC spending. You just bought a business to finance data centers. How big is the pipeline there.
That's a really great place to start. So the demand for data center capacity, physical digital infrastructure is measured in trillions, right you just commenting? I know on Google and Google amongst the other large tech companies. They're all on this quest for the digital future, and that digital future is for sure a high growth one and requires a lot of compute power. Now, a data center is not a
data center, is not a data center. The reason that we acquired IPI back to my earlier comment on best of read capabilities, IPI has been doing hyper scale data center focused funds and invest in for nearly ten years now, long before the word hyperscale data center cross the mind of most people. So it's a trendy topic. My guess is that every person that talks this quarter will use
the word data centers. But here's the key. You have to be able to earn the trust of that long term private partnership with the important hyperscale developers, and that for IPI is truly distinctive. We have an eight hundred person operations group as an affiliate of IPI in order to be able to do the power management, the development,
the condition. That's what the Microsofts and the Amazons and the Googles and the Metas are looking for and that marries perfectly with our triple net least business where today we're a go to partner of choice for holding the real assets, real estate assets of investment grade counterparties.
Mark, we have to leave it there. We didn't even get to ask you about Tampa Bay. We'll have me back those questions offline. Blue Level Capital, Coco, Mark Lipschaltz,