Blue Owl Capital to Raise $1.5 Billion Through Portfolio Sale

Blue Owl Capital is working with Goldman Sachs to transfer stakes in the Dyal Capital Partners IV fund into a new structure with new investors, raising about $1.5B. The deal is expected to bolster Blue Owl's capital base, with shares down 7c to $18.50 in midday trading.

Blue Owl Capital is in the process of raising $1.5 billion through a new private fund, a move that aims to bolster its capital base. The fund, which is being structured in collaboration with Goldman Sachs, involves transferring stakes in the Dyal Capital Partners IV fund to new investors. This initiative is part of Blue Owl's strategy to diversify its investment portfolio and attract a broader range of investors.

The new fund will be offered to both conservative and adventurous investors, featuring a mix of debt and equity. According to Bloomberg, the fund will include three separate classes of debt, each with a different credit rating, plus an equity slice for those seeking higher returns. This hybrid approach is designed to cater to varying risk appetites and provide investors with flexibility in their investment choices [1].

Blue Owl Capital will retain control through the management entity overseeing the stakes, ensuring it remains at the heart of the investment process. The pricing for the different tranches is still being finalized, with the firm aiming to tailor the offering to current market demands for liquidity and customization.

The deal comes at a time when private capital markets are evolving rapidly. Blue Owl's innovative approach is another sign of this transformation, as it seeks to attract institutional and high-net-worth investors with a mix of debt and equity options. The structure of the fund also responds to increasing demand for liquidity and customization in private assets, particularly among investors wary of long-term commitments [1].

This initiative highlights the growing importance of fund structures in attracting investors and shaping capital flows. As alternative investments gain popularity, fund managers are experimenting with new ways to bundle and market private assets. By blending traditional debt with equity, Blue Owl Capital is attempting to reach a broader audience and keep up with shifting investor preferences.

Blue Owl Capital's share price has seen a slight decrease, dropping by 7 cents to $18.50 in midday trading. This decline is likely a result of market fluctuations and may not be indicative of the overall health of the company's operations.

In summary, Blue Owl Capital's new private fund is a significant step in the evolution of private capital markets. By offering a mix of debt and equity, the fund aims to attract a diverse range of investors and respond to current market demands for flexibility and liquidity.

References:
[1] https://finimize.com/content/blue-owl-capital-eyes-15-billion-with-new-private-fund