Blue Owl Capital has agreed to the $1bn (£765m) acquisition of digital infrastructure fund supervisor IPI Companions from ICONIQ Capital and Iron Level Companions.
The acquisition value will likely be comprised of roughly 80 per cent Blue Owl fairness and roughly 20 per cent money.
The acquisition is anticipated to shut within the fourth quarter of 2024 or first quarter of 2025, topic to sure closing circumstances together with third celebration consents, and is anticipated to be impartial to Blue Owl’s earnings in 2025 and modestly accretive in 2026.
Blue Owl will accomplice with an affiliate of ICONIQ to assist speed up the longer term progress of the enterprise.
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IPI has roughly $10.5bn in belongings below administration as of June 30, 2024 and was based in 2016 as a three way partnership between ICONIQ and Iron Level to service the wants of huge, high-quality hyperscale and enterprise information centre customers.
The acquisition will increase Blue Owl’s digital infrastructure technique as a part of the agency’s actual property platform, which can proceed to be led by Blue Owl co-president Marc Zahr.
IPI’s managing accomplice Matt A’Hearn will change into head of Blue Owl’s digital infrastructure technique reporting to Zahr.
“There’s a huge market alternative to finance information facilities, matched by an rising investor urge for food for extra methods investing behind cloud and AI-driven secular tailwinds,” mentioned Blue Owl co-chief executives Doug Ostrover and Marc Lipschultz.
“IPI’s tenured funding staff, preeminent LP-base and world scale within the digital infrastructure financial system will improve our suite of capital options and funding choices, additional strengthening our place as a accomplice of alternative. Buyers can profit significantly from the mixture of Blue Owl’s triple web lease data and IPI’s depth within the information centres market.”
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IPI managing accomplice Matt A’Hearn added: “On behalf of the IPI staff, we’re extremely excited to affix Blue Owl and function the muse for increasing the agency’s digital infrastructure technique, additional complementing their market-leading web lease technique. We’re additionally grateful to our companions at ICONIQ and Iron Level, who have been instrumental in serving to us change into one of the crucial scaled digital infrastructure managers. We consider there’s an amazing quantity that IPI can accomplish throughout the Blue Owl ecosystem alongside our companions at ICONIQ, and look to increase our market main place.”
Deutsche Financial institution Securities, J.P. Morgan Securities, Morgan Stanley & Co, Societe Generale, and TD Securities are performing as co-financial advisors to Blue Owl in reference to the acquisition. Kirkland & Ellis is performing as authorized advisor to Blue Owl.
Gibson, Dunn & Crutcher is performing as authorized advisor to IPI. Berkshire International Advisors is serving as monetary advisor to Iron Level.
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