Blue Owl (NYSE: OWL) stock price surged to a record high this week after the company made moves to boost its assets under management (AUM). It soared to $19.8, meaning that it has surged by more than 157% from its all-time low.
Blue Owl acquires KuvareI have covered Blue Owl several times in the past and recommended it as one of the best private equity companies to buy. You can read these reports here and here. It has done well since these publications as investors cheer the company’s growth trajectory.
To be clear: Blue Owl is not the only PE stock that is soaring. Others like Apollo Global, Blackstone, KKR, and Carlyle have all jumped sharply in the past few months.
Blue Owl’s performance is a reflection of its strong financial performance, helped by its strong fundraising assets. It ended the year with over $84.6 billion in credit assets, and $54.2 billion in GP strategic capital, and $26.9 billion in real estate.
Blue Owl has been a cash-raising machine. It raised $2.5 billion for its credit business, $2.1 billion for its GP Strategic Capital, and $1.1 billion in real estate.
Capital raising is an important part of a company like Blue Owl because it makes substantial sums of money in fees. Its management fees jumped by 26%, with most of them being from permanent capital.
Altogether, Blue Owl has grown its total annual revenue from over $190 million in 2019 to over $1.73 billion in 2023. Analysts believe that this growth will continue accelerating in the coming years. They see it growing its revenue to $2.1 billion in 2024 and $2.63 billion in 2025.
Blue Owl made headlines this week when it acquired Kuvare Asset Management in a $750 million deal. The acquisition is notable since Kuvare has over $20 billion in assets.
Most important, it marks the first time that Blue Owl has moved to the insurance industry which has benefited many peers. For example, Apollo has become a major player in the industry because of its Athene product. KKR has also become a major player in the industry through its Global Atlantic investment.
Having an insurance company is a great thing for OWL because it provides it with permanent capital that it can deploy in high-growth assets.
Therefore, I believe that OWL stock price will likely continue doing well because of the strong demand for private credit and its Kuvare buyout.
Blue Owl stock price forecast
The weekly chart shows that the OWL share price bottomed at $7.5 in 2022. It has now surged and is nearing $20. Along the way, the stock has jumped above the important resistance point at $16.22, its highest swing in November 2021.
The stock has remained above all moving averages, signalling that buyers are in total control. Oscillators like the Relative Strength Index (RSI) and the Stochastic Oscillator have continued soaring. Therefore, the outlook for the stock is extremely bullish, with the next point to watch being at $30.
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