- GIC's Jesse Hom to join Blue Owl
as Head of Real Estate Finance
NEW
YORK, April 9, 2024 /PRNewswire/ -- Blue
Owl Capital Inc. ("Blue Owl") (NYSE: OWL), a leading alternative
asset manager, announced today the creation of Blue Owl's Real
Estate Finance strategy with the acquisition of Prima Capital
Advisors ("Prima") for the aggregate consideration of $170 million. Prima manages approximately
$10 billion in assets on behalf of
institutional investors and select high net worth individuals. The
acquisition is expected to close in the second or third quarter of
2024, subject to customary closing conditions.
Prima, founded in 1992 by Gregory
White, is a real estate lender focused primarily on
investing in commercial mortgage-backed securities. Prima is
majority owned by Stone Point Capital LLC ("Stone Point"), an alternative investment firm
based in Greenwich, Connecticut.
Blue Owl's acquisition of Prima will be funded through a
combination of approximately $157
million of equity and approximately $13 million in cash, subject to certain closing
consideration adjustments. In addition, there is potential for up
to $35 million of earnout
consideration in the form of equity. Upon closing of the
acquisition, Prima employees are expected to join Blue Owl.
Blue Owl also announced that Jesse
Hom, previously Global Head of Real Estate Credit at GIC,
will join Blue Owl to lead the newly created Real Estate Finance
strategy and serve as Chief Investment Officer for Blue Owl's Real
Estate platform, reporting directly to Marc
Zahr, Co-President of Blue Owl and Head of Real Estate. In
addition to launching Blue Owl's Real Estate Finance strategy, Hom
will work to grow the existing triple net lease business and
identify strategic opportunities to build out and scale the Real
Estate platform.
Blue Owl Co-CEOs Doug Ostrover
and Marc Lipschultz said: "This
acquisition of Prima represents a further expansion of Blue Owl's
suite of capital solutions, adding a differentiated and
high-quality real estate lending capability and further
diversifying our real estate platform. There is a growing lack of
capital availability in real estate today – we believe that Prima's
strong underwriting capabilities and track record, combined with
the scale of Blue Owl's ecosystem, can address these needs while
creating attractive risk-reward opportunities for investors.
Today's announcements underscore how we think about strategic
inorganic growth at the investment platform level. Marc Zahr and his team built a leading triple
net real estate business that will become even more comprehensive
and compelling with the addition of Prima's debt capabilities."
Co-President of Blue Owl and Head of Real Estate Marc Zahr said:
"I have had the pleasure of knowing Jesse for years and can say he
is one of the most well-respected, thoughtful and experienced real
estate credit investors in the industry. I am confident that he,
along with the outstanding team at Prima who maintain a 30-year
track record of success, will further bolster our Real Estate
platform's value proposition."
Jesse Hom said: "The opportunity
to build on the tremendous success of both Blue Owl and Prima to
create a dedicated real estate finance strategy is a unique and
exciting prospect. I am grateful to GIC for 15 amazing years and
looking forward to starting this new chapter in my career."
Prima CEO Gregory White said: "In
evaluating the next stage for how we can best serve our
stakeholders, we identified Blue Owl as the clear value-driver
given the strength of their management team, their exceptional
capabilities and strong culture of collaboration. I along with
Prima CIO Nilesh Patel, CFO Julia
Tcherkassova, and the rest of the Prima team, are excited to
join Blue Owl and continue the strong legacy we created over the
past three decades."
Stone Point CEO Chuck Davis said,
"Blue Owl's position as a leading capital solutions provider for
the alternatives industry makes it well situated to further build
on Prima's record of success. We are proud to have been partners
with Greg, Nilesh, Julia and the rest of the Prima team for more
than 12 years and believe that Blue Owl can help take Prima to the
next level. We are enthusiastic about Prima's future as part of
Blue Owl and are pleased to take our consideration in Blue Owl
equity."
Berkshire Global Advisors L.P. and J.P. Morgan Securities LLC
are serving as lead financial advisors to Blue Owl in connection
with the transaction. Natixis Corporate & Investment Banking,
Wells Fargo, Newmark and Scotiabank are also acting as co-advisors
to Blue Owl. Kirkland & Ellis LLP is serving as legal advisor
to Blue Owl.
Morgan Stanley & Co. LLC is serving as financial advisor to
Prima. Kramer Levin Naftalis &
Frankel LLP and Pillsbury Winthrop Shaw Pittman LLP are serving as
legal advisors to Prima.
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.
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 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.
Investor Contact
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com
Media Contact
Nick Theccanat
Principal, Corporate Communications & Government Affairs
Nick.Theccanat@blueowl.com
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SOURCE Blue Owl Capital