NEW YORK, New York – Blue Owl Capital Inc. has announced the successful final closing of Dyal Capital Partners V (Fund V), securing over $12.9 billion in committed capital. This milestone, reached on December 30th, marks a significant expansion for Dyal Partners, with Fund V nearly $4.0 billion larger than its predecessor, Dyal Capital Partners IV.
This achievement further solidifies Blue Owl’s dominant position as the premier provider of minority equity capital to leading institutional alternative asset management companies through its GP Capital Solutions division, which includes Dyal Partners. With aggregate commitments exceeding $37 billion across GP Capital Solutions funds and co-investment vehicles, Blue Owl’s influence in this sector is undeniable. As of September 30, 2022, Dyal Partners’ 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, emphasized the strategic advantage of GP Capital Solutions investments, especially in the current economic climate. “The robust investor demand for Fund V highlights the compelling nature of GP Capital Solutions investments, particularly during times of economic uncertainty,” Rees stated. He further added, “With over $2 trillion of dry powder within the private equity market and a distinguished group of General Partners already secured in the Fund V portfolio, we are highly confident in our ability to generate substantial value for both our investors and general partners.”
The core objective of Dyal Partners’ Fund V is to strategically deploy passive, minority equity capital. This capital is primarily intended to bolster the balance sheets of General Partner (GP) firms, empowering these leading entities to increase their co-investment alongside their limited partners (LPs). Ultimately, Fund V anticipates building a diversified portfolio of approximately 20 private equity firms, spanning various asset classes, strategies, and geographies. This diversified approach is a hallmark of Dyal Partners’ investment philosophy.
To date, Fund V has already made strategic investments 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 transactions represent a significant deployment of capital, with approximately 70% of Fund V’s capital already committed.
Sean Ward, Senior Managing Director at Blue Owl, underscored Dyal Partners’ unique market position and the added value they bring to their partners beyond just capital infusion. “Our market-leading position in GP capital solutions, spearheaded by Dyal Partners, allows us to forge partnerships with elite managers whose capital requirements can only be met by a select few,” Ward explained. “However, our value proposition extends far beyond serving as a capital source. We offer our partners access to our comprehensive Business Services Platform, a dedicated advisory team of over 40 industry experts. This platform is designed to support our partners’ strategic business objectives across a range of critical areas, including capital strategy, private wealth solutions, human capital advisory, operational advisory, corporate strategy and M&A, ESG (Environmental, Social, and Governance) advisory, diversity, equity and inclusion initiatives, and data science.” This holistic approach is what sets Dyal Partners apart in the competitive landscape of GP Capital Solutions.
Fund V has attracted a diverse and prestigious 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% coming from Asia, demonstrating the broad international appeal and confidence in Blue Owl’s and Dyal Partners’ investment strategy. This global investor confidence underscores the strength and attractiveness of Dyal Partners’ approach to GP Capital Solutions in the global market.
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Forward Looking Statements
(Same as original)
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,”“seeks,” “may,” “will,” “would,” “should,” “future,” “propose,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date made. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blue Owl’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include the inability to recognize the anticipated benefits of strategic acquisitions; costs related to acquisitions; the inability to maintain the listing of Blue Owl’s shares on the New York Stock Exchange (“NYSE”); Blue Owl’s ability to manage growth; Blue Owl’s ability to execute its business plan and meet its projections; potential litigation involving Blue Owl; changes in applicable laws or regulations; the possibility that Blue Owl may be adversely affected by other economic, business, geo-political and competitive factors; and the impact of the continuing COVID-19 pandemic on Blue Owl’s business.
