Blue Owl, Lunate to form joint venture to invest in mid-sized asset managers

The JV will acquire minority stakes in firms with fee-paying assets of less than $10bn.

  • Blue Owl is an asset manager based in New York
  • The firm manages $157 billion in assets
  • Lunate has $105 billion of assets under management

Blue Owl Capital and Lunate will form a joint venture (JV) to provide growth capital to mid-sized private capital GPs.

The joint venture will seek to acquire minority stakes in private market investment managers with fee-paying assets under management of less than $10 billion.

The JV will target GPs with a clear sector specialisation, differentiated approach, strong leadership and culture, and an established foundation of a stable platform with identifiable key drivers of franchise value, according to a release.

“They [Lunate] bring valuable investment experience as both an LP and minority GP stake investor,” said Michael Rees, co-president of Blue Owl. “We think the combined effort will be truly differentiated for mid-sized GPs and be complementary to our existing strategy focused on larger managers.”

Blue Owl is an asset manager based in New York. It manages $157 billion in assets and invests across credit, GP strategic capital and real estate.

Lunate is an Abu Dhabi-based, partner-led independent global alternative investment manager with $105 billion of assets under management. It invests across the entire private markets spectrum including buyouts, growth equity, early and late-stage venture capital, private credit, real assets, and public equities and public credit.