Blue Owl Capital Explained

Blue Owl Capital Inc.
Type:Public
Industry:Financial services
Founded:[1] [2]
Hq Location:399 Park Avenue
Hq Location City:New York City
Hq Location Country:United States
Revenue: US$1.73 billion (2023)
Net Income: US$221 million (2023)
Aum: US$174.3 billion (2024)
Assets: US$8.82 billion (2023)
Equity: US$5.28 billion (2023)
Num Employees:725 (2024)
Footnotes:Financials .[3]

Blue Owl Capital Inc. (also known as Blue Owl) is an American alternative investment asset management company. It is listed on the New York Stock Exchange under the ticker symbol: "OWL".[1] [2] [4] [5] [6] [7]

The company is headquartered in New York City with additional offices around the world, including London, Dubai, and Hong Kong, among other major cities.

History

In December 2020, it was announced there would be a merger between Owl Rock Capital Group and Dyal Capital Partners. The two firms would combine with a special-purpose acquisition company, Altimar Acquisition Corp to form Blue Owl.[8] The deal was valued at $12.2 billion which included a $1.5 billion commitment from investors such as ICONIQ Capital, Federated Hermes and Liberty Mutual.

On May 19, 2021, the transaction was completed and Blue Owl was listed on the New York Stock Exchange.

On October 18, 2021, Blue Owl acquired Oak Street, a private equity real estate firm for $950 million.[9] [10] [11] [12]

On December 13, 2021, Blue Owl acquired Ascentium Group, a business development office based in Hong Kong.[13] This was done as part of its plans to expand in Asia.

In October 2022, Bloomberg reported Blue Owl intended to expand the size of its offices in Greenwich, Connecticut and had opened an office in New Jersey.[14]

The company entered into an agreement to purchase Atalaya Capital Management, a private credit firm, in July 2024.[15]

Business overview

Blue Owl has three business units:

GP Strategic Capital (formerly Dyal Capital)

Dyal Capital was formed in 2011 by Michael Rees and Sean Ward who were both formerly of Lehman Brothers.[16] [17] Since inception, the firm has been part of Neuberger Berman which currently retains a stake in Blue Owl as a result of the merger.

Dyal Capital provides financing to hedge funds and private equity firms by acquiring minority interests in them. Firms it has acquired interests in include:

In July 2021, Dyal Capital acquired minority stakes in the NBA teams, Phoenix Suns and Sacramento Kings.[25] [26]

In March 2022, Blue Owl announced it planned to hold an IPO for Dyal Capital on the London Stock Exchange.

In June 2023, Bloomberg reported that Dyal Capital would be renamed to Blue Owl GP Strategic Capital due to tensions among the co-founders where Rees was asked to resign. Dyal Capital came from the name of his children.[27]

Funds

Fund[28] Vintage YearCommitted Capital ($m)
Dyal Capital Partners2012USD 1,280
Dyal Capital Partners II2014USD 837
Dyal Capital Partners III2017USD 5,300
Dyal Capital Partners IV2019USD 9,000
Dyal Capital Partners V[29] 2022USD 13,000

Real Estate (formerly Oak Street)

Oak Street was founded in 2009 by Marc Zahr and James Hennessey.[30]

Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks.

In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion.[31] In September 2022, Oak Street and GIC agreed to acquire Store Capital for $14 Billion.[32]

Credit (formerly Owl Rock)

Owl Rock was founded in 2016 by Doug Ostrover (co-founder of GSO Capital Partners), Marc Lipschultz (former KKR partner) and Craig Packer (formerly of Goldman Sachs).

The firm is a middle market Private credit direct lending firm that deals with credit investments.[33] Its clients include George Soros, Brown University and the state of South Carolina.

Notes and References

  1. Web site: Owl Rock, Dyal Capital to merge in $12 billion deal . Pensions & Investments . en . December 23, 2020.
  2. Web site: Gottfried . Cara Lombardo and Miriam . Owl Rock, Dyal Strike Deal to Combine and Go Public . Wall Street Journal . December 23, 2020.
  3. Web site: Annual Report 2023 . February 23, 2024 . U.S. Securities and Exchange Commission.
  4. Web site: Dorbian . Iris . May 20, 2021 . Blue Owl goes public on NYSE . October 17, 2022 . PE Hub . en-US.
  5. Web site: December 15, 2021 . The Biggest IPOs of 2021 . October 17, 2022 . Morningstar, Inc. . en.
  6. News: Gottfried . Miriam . June 23, 2021 . Blue Owl, Newest Private-Equity Creation, Sees Wisdom in Simplicity . en-US . Wall Street Journal . October 17, 2022 . 0099-9660 . WSJ2.
  7. Web site: Beltran . Luisa . Blue Owl's Stock Will Rise This Year, Analyst Says . October 17, 2022 . www.barrons.com . en-US.
  8. News: Gottfried . Cara Lombardo and Miriam . December 23, 2020 . Owl Rock, Dyal Strike Deal to Combine and Go Public . en-US . Wall Street Journal . October 17, 2022 . 0099-9660.
  9. Web site: October 18, 2021 . Blue Owl Capital to acquire Oak Street Real Estate Capital . October 17, 2022 . Pensions & Investments . en.
  10. Web site: Oak Street Real Estate Capital To be Acquired by Blue Owl Capital . October 17, 2022 . www.willkie.com.
  11. Web site: Basak . Sonali . March 4, 2022 . Blue Owl Capital Plans London IPO of Dyal Assets . October 17, 2022 . www.bloomberg.com.
  12. Web site: October 18, 2021 . Chicago sale-leaseback specialist selling for $950 million . October 17, 2022 . Crain's Chicago Business . en-US.
  13. Web site: December 13, 2021 . Blue Owl buys Ascentium Group as part of Asia expansion . October 17, 2022 . Pensions & Investments . en.
  14. News: Wong . Natalie . Parmar . Hema . Kane . Lizzie . Citadel, Blue Owl Expand in Connecticut in Bid to Cut Commutes . October 27, 2022 . Bloomberg . October 27, 2022.
  15. News: Basak . Sonali . Natarajan . Sridhar . Tan . Gillian . Blue Owl to Buy Atalaya in Deeper Push Into Private Credit . 17 July 2024 . Bloomberg . 16 July 2024.
  16. News: July 22, 2021 . Michael Rees: how a private equity chief turned the tables on his peers . Financial Times . October 17, 2022.
  17. News: January 4, 2019 . Lehman spinout profits from buying into buyout groups . Financial Times . October 17, 2022.
  18. Web site: August 13, 2018 . Dyal Capital Partners takes stake in Bridgepoint . October 19, 2022 . Pensions & Investments . en.
  19. Web site: Clearlake Attracts Minority Investment From Dyal, Goldman, Landmark . Institutional Investor . May 29, 2018 . en-gb.
  20. News: March 19, 2017 . Price of alternative investment companies hotly debated . Financial Times . December 1, 2022.
  21. News: February 15, 2021 . Wealth Firm for Silicon Valley Billionaires Sets Up in London . en . Bloomberg.com . December 1, 2022.
  22. News: January 12, 2022 . Billionaire Michael Kim's Private Equity Firm Sells Stake to Dyal Capital . en . Bloomberg.com . December 1, 2022.
  23. TSSP . TPG Sixth Street Partners (TSSP) Announces Completion of Strategic Minority Investment by Dyal Capital Partners . December 1, 2022 . www.prnewswire.com . en.
  24. Web site: Tan . Hillary Canada, Juliet Chung and Gillian . Vista Equity Sells Less-Than-20% Stake in Itself to Group Led By Dyal Capital . December 1, 2022 . WSJ . en-US.
  25. Web site: Basak . Sonali . July 6, 2021 . Dyal Buys Stake in Phoenix Suns, Valuing Team at $1.55 Billion . October 17, 2022 . www.bloomberg.com.
  26. News: Gottfried . Miriam . July 11, 2021 . WSJ News Exclusive Dyal Capital Nears Deal for Minority Stake in Sacramento Kings . en-US . Wall Street Journal . October 17, 2022 . 0099-9660.
  27. News: McNeely . Allison . Basak . Sonali . June 22, 2023 . Blue Owl to Retire Its Owl Rock and Dyal Brands as Founders Feud . Bloomberg . June 22, 2023.
  28. Web site: Blue Owl Capital Palico . October 22, 2022 . www.palico.com.
  29. Web site: Basak . Sonali . October 15, 2022 . Blue Owl's Dyal Capital Is on Track to Raise Its Largest Fund Ever at $13 Billion . October 22, 2022 . www.bloomberg.com.
  30. Web site: 40 Under 40 2018: Jim Hennessey and Marc Zahr - Crain's Chicago Business . October 17, 2022 . www.chicagobusiness.com.
  31. Web site: BREAKING: Calgary's Bow tower sold for $1.2 billion . October 17, 2022 . Western Investor . August 9, 2021 . en.
  32. News: September 15, 2022 . GIC, Blue Owl Agree to Buy Store Capital for $14 Billion . en . Bloomberg.com . February 4, 2023.
  33. News: Wirz . Matt . February 13, 2020 . Behind the Rise of Owl Rock: Low Fees . en-US . Wall Street Journal . October 17, 2022 . 0099-9660.

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