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HomePeer to Peer LendingBlue Owl expands into actual property finance

Blue Owl expands into actual property finance

Blue Owl Capital has expanded into actual property finance with the acquisition of Prima Capital Advisors for $170m (£134.1m).

Prima is an actual property lender targeted on industrial mortgage-backed securities that’s majority owned by Stone Level Capital. It manages round $10bn of belongings on behalf of institutional and high-net-worth traders.

Blue Owl additionally introduced that Jesse Hom, beforehand international head of actual property credit score at GIC, will be a part of Blue Owl to steer the newly created actual property finance technique and can function chief funding officer for Blue Owl’s actual property platform, reporting on to Marc Zahr, co-president of Blue Owl and head of actual property.

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Blue Owl mentioned Hom can even work to develop the present triple web lease enterprise and establish strategic alternatives to construct out and scale the actual property platform.

“This acquisition of Prima represents an extra enlargement of Blue Owl’s suite of capital options, including a differentiated and high-quality actual property lending functionality and additional diversifying our actual property platform,” mentioned Blue Owl co-chief executives Doug Ostrover and Marc Lipschultz. “There’s a rising lack of capital availability in actual property at the moment – we consider that Prima’s sturdy underwriting capabilities and monitor file, mixed with the size of Blue Owl’s ecosystem, can tackle these wants whereas creating enticing risk-reward alternatives for traders.”

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The acquisition is predicted to shut within the second or third quarter of 2024, topic to customary closing situations.

Blue Owl’s acquisition of Prima will likely be funded via a mixture of roughly $157m of fairness and roughly $13m in money. As well as, there may be potential for as much as $35m of earnout consideration within the type of fairness.

Upon closing of the acquisition, Prima staff are anticipated to affix Blue Owl.

“In evaluating the subsequent stage for a way we are able to finest serve our stakeholders, we recognized Blue Owl because the clear value-driver given the power of their administration crew, their distinctive capabilities and robust tradition of collaboration,” mentioned Prima chief govt Gregory White.

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“I together with Prima CIO Nilesh Patel, CFO Julia Tcherkassova, and the remainder of the Prima crew, are excited to affix Blue Owl and proceed the sturdy legacy we created over the previous three a long time.”

Blue Owl has over $165bn in belongings beneath administration and invests throughout three multi-strategy platforms: credit score, GP strategic capital and actual property.



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