Blue Owl Capital Inc.
(Prior to May 19, 2021, Owl Rock)
Notes to Consolidated and Combined Financial Statements (Unaudited)
Unfunded Product Commitments
As of June 30, 2021, the Company had unfunded investment commitments to its products of $4.4 million, which is exclusive of commitments that
employees and other related parties have to the products.
Indemnification Arrangements
In the normal course of business, the Company enters into contracts that contain indemnities for related parties of the Company, persons acting on behalf of
the Company or such related parties and third parties. The terms of the indemnities vary from contract to contract and the Companys maximum exposure under these arrangements cannot be determined and has not been recorded in the consolidated
statements of financial condition. As of June 30, 2021, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of material loss to be remote.
Litigation
From time to time, the Company is
involved in legal actions in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, the Company does not have a potential liability related to any current legal
proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition or cash flows.
12.
RELATED PARTY TRANSACTIONS
The majority of the Companys revenues, including all management fees and administrative fees, are earned from the
products it manages, which are considered related parties.
Reimbursements from the Companys Products
Administrative fees represent allocable compensation and other expenses incurred by the Company, pursuant to administrative agreements, that are reimbursed by
products it manages. These administrative fees are included within administrative, transaction and other fees on the consolidated and combined statements of operations and totaled $6.8 million and $10.3 million during the three and six
months ended June 30, 2021, respectively, and $3.0 million and $5.8 million during the three and six months ended June 30, 2020, respectively.
The Company also has arrangements in place with products that it manages, whereby certain costs are initially paid by the Company and subsequently are
reimbursed by the products. These amounts are included within due from related parties in the Companys consolidated and combined statements of financial condition.
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(dollars in thousands)
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June 30, 2021
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December 31, 2020
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Management fees
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$
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113,104
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$
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78,586
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Administrative fees and other expenses paid on behalf of the Companys products and other
related parties
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34,423
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14,112
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Due from Related Parties
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$
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147,527
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$
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92,698
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Employee Capital Invested in the Companys Products
The Companys executives and other employees have invested in and committed to the Companys products approximately $1.9 billion and
$480.0 million as of June 30, 2021 and December 31, 2020, respectively, and a portion of these investments are not charged fees. The increase from the prior year is a result of the Business Combination due to the addition of related
party investments and commitments in the GP Capital Solutions products.
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