• Meta Platforms announced a joint venture with funds managed by Blue Owl Capital to develop and own the Hyperion data center campus, with Blue Owl holding an 80% interest and contributing US$7 billion of capital to the project.

• This partnership marks a major expansion for Blue Owl into large-scale digital infrastructure linked to artificial intelligence and highlights Meta’s long-term commitment to rapid AI growth.

• We’ll assess how Blue Owl’s bold move into data center infrastructure through its Meta partnership could reshape its investment outlook.

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To own Blue Owl Capital, investors need confidence in the enduring appetite for private credit and digital infrastructure, as well as Blue Owl’s ability to scale and execute partnerships like its recent US$27 billion joint venture with Meta. While this major move expands Blue Owl’s reach in mission-critical data centers for AI, it does not appear to immediately offset the most pressing risk: a slowdown in fundraising or weaker capital inflows, which would directly impact near-term earnings growth and fee revenue.

Among recent announcements, Blue Owl’s September launch of OWLCX, its Blue Owl Alternative Credit Fund securing US$850 million in initial capital, shows ongoing momentum in making private assets accessible to individual investors. This effort is relevant to the near-term catalyst of broadening Blue Owl’s addressable market, adding stable fee-generating products that complement large institutional ventures like the Meta partnership.

However, against this backdrop, investors should pay attention to signs of fundraising weakness or capital inflow volatility, as even the biggest new projects can’t insulate the company if…

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

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

Uncover how Blue Owl Capital’s forecasts yield a $23.92 fair value, a 44% upside to its current price.

Six Simply Wall St Community members estimate Blue Owl’s fair value from as little as US$0.59 up to US$28 per share. While some see dramatic upside, others point to critical risks such as potential fundraising slowdowns, highlighting just how much outlooks can vary, make sure you consider multiple viewpoints.