Different asset supervisor Blue Owl Capital is increasing its options for the “multi-trillion-dollar insurance coverage market” by buying Kuvare Asset Administration (KAM) for $750m (£596m).

KAM gives asset administration providers to the insurance coverage business.

Blue Owl has individually bought $250m of most popular fairness in KAM’s UK arm, Kuvare UK, offering development capital to Kuvare UK’s insurance coverage corporations, every of which can change into new asset administration purchasers of Blue Owl.

As well as, Blue Owl and Kuvare UK have entered into funding administration agreements that allow Blue Owl to deploy as much as $3bn of belongings throughout its current credit score, GP strategic capital and actual property funding platforms.

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Blue Owl stated that the acquisition will add as much as $20bn of belongings underneath administration after the deal closes, and help the launch of Blue Owl Insurance coverage Options.

Kuvare UK will proceed to handle the general asset allocations for its insurance coverage companies and strategic investments.

“Our acquisition of KAM permits us to offer broader options to the multi-trillion-dollar insurance coverage market at scale,” stated Doug Ostrover, co-chief government of Blue Owl.

“KAM’s capabilities in funding grade credit score and actual property methods complement Blue Owl’s current power in these asset courses and additional speed up our skill to carry differentiated merchandise and methods to the marketplace for Kuvare and third-party insurance coverage purchasers.”

Blue Owl co-chief government Marc Lipschultz added: “This partnership with Kuvare anchors Blue Owl’s increasing presence within the insurance coverage channel, significantly complementing our sturdy institutional and wealth footprint and additional diversifying the markets for which we offer funding options. In mixture, we imagine these transactions replicate a inventive strategy to increasing our choices for the insurance coverage market at a sexy worth.”

Blue Owl will fund the KAM acquisition by way of a mix of $325m in money and $425m in Blue Owl Class A standard inventory. The acquisition is anticipated to shut within the second or third quarter of this yr, topic to regulatory approvals.

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“It is a vital and thrilling step within the evolution of Kuvare to affiliate in such an impactful approach with an asset supervisor of Blue Owl’s caliber,” stated Kuvare founder and chairman Dhiren Jhaveri. “We all the time try to be glorious stewards of belongings entrusted to us by our policyholders and reinsurance companions, and the crew at Blue Owl has demonstrated a singular dedication to serving to us obtain our objectives.”

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