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 centered 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 world 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 stated Hom can even work to develop the prevailing triple web lease enterprise and establish strategic alternatives to construct out and scale the actual property platform.
“This acquisition of Prima represents an additional 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,” stated Blue Owl co-chief executives Doug Ostrover and Marc Lipschultz. “There’s a rising lack of capital availability in actual property at present – we consider that Prima’s robust underwriting capabilities and monitor document, mixed with the size of Blue Owl’s ecosystem, can handle these wants whereas creating engaging 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 can be funded by a mixture of roughly $157m of fairness and roughly $13m in money. As well as, there’s potential for as much as $35m of earnout consideration within the type of fairness.
Upon closing of the acquisition, Prima workers are anticipated to affix Blue Owl.
“In evaluating the subsequent stage for the way we will greatest 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,” stated Prima chief government 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 robust legacy we created over the previous three a long time.”
Blue Owl has over $165bn in belongings below administration and invests throughout three multi-strategy platforms: credit score, GP strategic capital and actual property.
