Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our primary exposure to market risk is the indirect impact that movements in the fair value of investments in products has on our management fees. In our
Direct Lending products, our management fees are generally based on the fair value of the gross assets held by such products, and therefore changes in the fair value of those assets impacts the management fees we earn in any given period. Management
fees from our GP Capital Solutions products, however, are generally based on capital commitments or investment cost, and therefore management fees are not materially impacted by changes in fair values of the underlying investments held by those
products. To the extent that management fees are calculated based on investment cost of the products investments, the amount of fees that we may charge will increase or decrease from the effect of changes in the cost basis of the
products investments, including potential impairment losses.
Interest Rate Risk
Our 2031 Notes bear interest at fixed rates. Our Revolving Credit Facility bears interest at a variable rate based on LIBOR (or an alternative base rate at our
option). Currently, we have no borrowings outstanding under our Revolving Credit Facility, and therefore changes in interest rates would not have a material impact on our interest expense.
Credit Risk
We generally endeavor to minimize our risk
of exposure by limiting to reputable financial institutions the counterparties with which we enter into financial transactions. As of September 30, 2021 and December 31, 2020, we had cash balances with financial institutions in excess of
Federal Deposit Insurance Corporation insured limits. We seek to mitigate this exposure by monitoring the credit standing of these financial institutions.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired objectives.
Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of
our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act as of September 30, 2021. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have
concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to accomplish their objectives at a reasonable assurance level.
We have not engaged an independent registered accounting firm to perform an audit of our internal control over financial reporting as of any balance sheet
date or for any period reported in our financial statements. Presently, we are not an accelerated filer, as such term is defined by Rule 12b-2 of the Exchange Act, and therefore our management is not presently
required to perform an annual assessment of the effectiveness of our internal control over financial reporting. Our independent public registered accounting firm will first be required to attest to the effectiveness of our internal control over
financial reporting for our Annual Report on Form 10-K for the year ended December 31, 2022.
Changes
in Internal Controls over Financial Reporting
During the quarter ended June 30, 2021, we completed the Business Combination and the internal
controls of Owl Rock became our internal controls. We are engaged in the process of the design and implementation of our internal control over financial reporting (as such term is defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act) in a manner commensurate with the scale of our operations subsequent to the Business Combination.
There have been no other changes in our internal control over financial reporting during the quarter ended September 30, 2021, that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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