NEW YORK, New York, January 11, 2023 — Blue Owl Capital Inc. (“Blue Owl”) (NYSE:OWL) has announced the final closing of Dyal Capital Partners V (“Fund V”), securing over $12.9 billion in committed capital. The fund, focused on providing capital solutions to general partners, concluded on December 30th and significantly surpassed its predecessor, Dyal Capital Partners IV, by nearly $4.0 billion.
This latest fund closure further strengthens Blue Owl’s dominant position in the GP Capital Solutions market. Across Blue Owl’s GP Capital Solutions platform, including Fund V and co-investment vehicles, total commitments now exceed $37 billion. This vast capital base underscores the firm’s role as the leading provider of minority equity capital to top-tier alternative asset management companies. As of September 30, 2022, Blue Owl’s GP Capital Solutions division boasts minority partnerships with over 55 firms and manages an impressive $47.8 billion in assets.
Michael Rees, Co-Founder and Co-President of Blue Owl, highlighted the appeal of GP Capital Solutions investments, particularly in the current economic climate. “The robust investor demand for Fund V demonstrates the attractiveness of GP Capital Solutions investments, especially during times of economic uncertainty,” Rees stated. He further emphasized the optimistic outlook for Fund V and its investors, noting, “With over $2 trillion in dry powder within the private equity industry and a premier group of GPs already within the Fund V portfolio, we are highly confident in our ability to generate significant value for both our investors and general partners.”
The core objective of Dyal Capital Partners V is to strategically deploy passive, minority equity capital. This capital is primarily intended to bolster the balance sheets of leading General Partner (GP) firms, enabling them to amplify their investments alongside their own investors. Ultimately, Fund V anticipates building a diversified portfolio of approximately 20 private equity firms, spanning various asset classes, strategies, and geographies.
To date, Dyal Capital Partners V has already invested in 17 prominent firms. This impressive roster includes industry leaders such as CVC Capital Partners, H.I.G. Capital, I Squared Capital, KPS Capital Partners, Lead Edge Capital, MBK Partners, and PAI Partners. These initial transactions represent a significant commitment, with approximately 70% of Fund V’s capital already allocated.
Sean Ward, Senior Managing Director at Blue Owl, emphasized the firm’s unique market position in GP capital solutions and the value proposition it offers beyond just capital. “Our market-leading position in GP capital solutions allows us to forge partnerships with elite managers whose capital requirements can only be met by a select few,” Ward explained. He further detailed Blue Owl’s comprehensive support system: “However, our value extends beyond simply providing capital. Our partners gain access to our extensive 40-person Business Services Platform, a dedicated advisory team comprised of industry experts. This platform supports our partners’ strategic business goals across a range of critical areas, including capital strategy, private wealth solutions, human capital advisory, operations advisory, corporate strategy and M&A, ESG advisory, diversity, equity and inclusion initiatives, and data science.”
Fund V has garnered backing from a diverse global investor base. This includes sovereign wealth funds, public and corporate pension plans, endowments, foundations, and family offices. Geographically, over 60% of the capital originates from the Americas, with more than 20% from Asia, demonstrating the broad global appeal of Blue Owl’s investment strategy and the strength of Dyal Capital Partners.
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