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 supplies 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 progress capital to Kuvare UK’s insurance coverage corporations, every of which is able to turn into new asset administration shoppers 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 property throughout its present credit score, GP strategic capital and actual property funding platforms.
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Blue Owl mentioned that the acquisition will add as much as $20bn of property below 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,” mentioned Doug Ostrover, co-chief govt of Blue Owl.
“KAM’s capabilities in funding grade credit score and actual property methods complement Blue Owl’s present energy in these asset lessons and additional speed up our skill to carry differentiated merchandise and methods to the marketplace for Kuvare and third-party insurance coverage shoppers.”
Blue Owl co-chief govt Marc Lipschultz added: “This partnership with Kuvare anchors Blue Owl’s increasing presence within the insurance coverage channel, drastically complementing our strong institutional and wealth footprint and additional diversifying the markets for which we offer funding options. In mixture, we consider these transactions mirror a inventive strategy to increasing our choices for the insurance coverage market at a gorgeous worth.”
Blue Owl will fund the KAM acquisition by way of a mixture of $325m in money and $425m in Blue Owl Class A standard inventory. The acquisition is predicted to shut within the second or third quarter of this 12 months, topic to regulatory approvals.
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“It is a crucial and thrilling step within the evolution of Kuvare to affiliate in such an impactful means with an asset supervisor of Blue Owl’s caliber,” mentioned Kuvare founder and chairman Dhiren Jhaveri. “We all the time attempt to be wonderful stewards of property entrusted to us by our policyholders and reinsurance companions, and the workforce at Blue Owl has demonstrated a singular dedication to serving to us obtain our targets.”
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