- Acquisition will add up to $20
billion in AUM for Blue Owl and support the launch of
Blue Owl Insurance Solutions
- Blue Owl also invested $250
million in Kuvare UK Holdings
NEW
YORK, April 3, 2024 /PRNewswire/ -- Blue Owl
Capital Inc. ("Blue Owl") (NYSE: OWL), a leading alternative asset
manager, announced today it has entered into a definitive purchase
agreement to acquire Kuvare Insurance Services LP (dba Kuvare
Asset Management) ("KAM") for $750
million. KAM is a boutique investment management firm
focused on providing asset management services to the insurance
industry, including Kuvare UK Holdings ("Kuvare"). Blue Owl will
fund the KAM acquisition through a combination of $325 million in cash and $425 million in Blue Owl Class A common stock.
The KAM acquisition is expected to close in the second or third
quarter of 2024 and remains subject to customary regulatory
approvals and other closing conditions and specified termination
rights. Upon closing of the KAM acquisition, most KAM employees are
expected to join Blue Owl. In addition, there is potential for up
to a $250 million earnout subject to
certain adjustments and achievements of future revenue targets.
Separately, Blue Owl made a long-term investment in Kuvare
today, purchasing $250 million of
preferred equity. This investment creates long-term alignment
between Blue Owl and Kuvare and provides valuable growth capital to
Kuvare's insurance companies, each of which will become new asset
management clients of Blue Owl. Founded in 2015, Kuvare is a
technology-enabled financial services firm operating several
insurance and reinsurance businesses and has become a top 20 fixed
and indexed annuity writer in the United
States. Kuvare's business segments include retail,
institutional reinsurance and specialty insurance advisory
services.
In addition to the preferred equity investment, Blue Owl and
Kuvare entered into investment management agreements ("IMAs") that
will allow Blue Owl to deploy up to $3
billion of assets across its existing Credit, GP Strategic
Capital and Real Estate investment platforms, which can grow over
time. Upon the closing of the KAM acquisition, Blue Owl will be
allocated up to $20 billion of AUM,
in aggregate. Kuvare will continue to manage the overall asset
allocations for its insurance businesses and strategic investments.
Blue Owl's IMAs with Kuvare insurance companies will be additive to
Blue Owl's permanent capital base while enhancing Kuvare's
investment capabilities.
These transactions are expected to be accretive to Blue Owl in
2024.
Doug Ostrover, Co-CEO of Blue Owl
said: "The creation of Blue Owl Insurance Solutions represents a
significant moment in Blue Owl's journey. Our acquisition of KAM
allows us to provide broader solutions to the multi-trillion-dollar
insurance market at scale. KAM's capabilities in investment grade
credit and real estate strategies supplement Blue Owl's existing
strength in these asset classes and further accelerate our ability
to bring differentiated products and strategies to the market for
Kuvare and third-party insurance clients."
Marc Lipschultz, Co-CEO of Blue
Owl said: "Our preferred equity investment in Kuvare reflects our
confidence in the growth trajectory of the business; both through
its extensive distribution network and proven reinsurance strategy.
This partnership with Kuvare anchors Blue Owl's expanding presence
in the insurance channel, greatly complementing our robust
institutional and wealth footprint and further diversifying the
markets for which we provide investment solutions. In aggregate, we
believe these transactions reflect a creative approach to expanding
our offerings for the insurance market at an attractive price."
Dhiren Jhaveri, Founder, Chairman
and CEO of Kuvare added: "It is an important and exciting step in
the evolution of Kuvare to associate in such an impactful way with
an asset manager of Blue Owl's caliber. We always strive to be
excellent stewards of assets entrusted to us by our policyholders
and reinsurance partners, and the team at Blue Owl has demonstrated
a unique commitment to helping us achieve our goals. We especially
look forward to continued collaboration with our many valued KAM
colleagues who will join the Blue Owl team at the close of this
transaction."
A supplemental investor presentation with respect to the
transaction is available on the shareholders section of Blue Owl's
website at www.blueowl.com.
Ardea Partners LP and PJT Partners LP are serving as lead
financial advisors to Blue Owl in connection with the transactions.
BofA Securities, BMO Capital Markets Corp., Deutsche Bank
Securities Inc., Goldman Sachs & Co. LLC, Mizuho and its
affiliate Greenhill & Co, Morgan Stanley & Co. LLC, and
Truist Securities, Inc. are also acting as co-financial advisors to
Blue Owl. Kirkland & Ellis LLP acted as legal advisor to Blue
Owl.
J.P. Morgan Securities LLC is acting as lead financial advisor
to KAM, and as co-placement agent on the investment in Kuvare. RBC
is acting as financial advisor to Kuvare and as co-placement agent
on the investment in Kuvare. Sidley Austin LLP acted as legal
advisor to Kuvare.
About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset manager that is
redefining alternatives.
With over $165 billion in assets
under management as of December 31,
2023, we invest across three multi-strategy platforms:
Credit, GP Strategic Capital, and Real Estate. Anchored by a strong
permanent capital base, we provide businesses with private capital
solutions to drive long-term growth and offer institutional and
individual investors differentiated alternative investment
opportunities that aim to deliver strong performance, risk-adjusted
returns, and capital preservation.
Together with over 685 experienced professionals globally, Blue
Owl brings the vision and discipline to create the exceptional. To
learn more, visit www.blueowl.com.
About Kuvare Holdings
Kuvare is a technology-enabled financial services platform
providing life insurance and annuity products to consumers,
reinsurance solutions to institutional markets, advisory services
to insurance businesses, as well as asset management solutions.
Headquartered in the Chicago area,
and founded in 2015, Kuvare has $37
billion of assets and is committed to a sustainable
long-term growth strategy. The family of Kuvare companies includes
Lincoln Benefit Life Company, Guaranty Income Life Insurance
Company, United Life Insurance Company, and Kuvare Life Re
(Bermuda), and Ignite Partners.
For more information about Kuvare, please
visit https://kuvare.com.
Forward Looking
Statements
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 risk of the KAM acquisition not closing on
a timely basis, if at all; 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; 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; and the possibility that Blue
Owl may be adversely affected by other economic, business,
geo-political and competitive factors.
Blue Owl Investor
Contact
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com
Blue Owl Media Contact
Nick Theccanat
Principal, Corporate Communications & Government Affairs
Nick.Theccanat@blueowl.com
Kuvare Media Contact
Erica Davis
Director, Corporate Communications
media@kuvare.com
800-637-6318
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SOURCE Blue Owl Capital