Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million.
Oak Street is a Chicago-based private equity real estate firm with about 35 employees and $10.8 billion in assets as of June 30.
The transaction is expected to close in the fourth quarter and will add a real estate capability within Blue Owl's financing solutions for its institutional and retail investor clients.
Once the deal closes, a news release states that "key members" of Oak Street's leadership team will continue to lead the Oak Street business, including co-founder and CEO Marc Zahr, who will join Blue Owl's board and executive committee. Blue Owl will retain Oak Street's Chicago office.
Oak Street also will operate under its name and brand once the deal closes, confirmed Gary L. Rozier, a managing director at Oak Street, in an email. Mr. Rozier added that no reductions in staff are expected.
"There is a strong fit between Blue Owl and Oak Street," Mr. Zahr said in the release. "My team and I look forward to partnering with the Blue Owl team to bring Oak Street's differentiated product offerings to a new base of investors and to collaborate to bring additional investment opportunities to investors in Oak Street's funds down the line."
Kirkland & Ellis served as legal counsel to Blue Owl during the deal, while Berkshire Global Advisors served as financial adviser and Willkie Farr & Gallagher acted as legal counsel to Oak Street.
Blue Owl was formed in May by the merger of Owl Rock Capital Group and Neuberger Berman Group's former subsidiary Dyal Capital Partners with special purpose acquisition company Altimar Acquisition Corp.
Blue Owl had $62.4 billion in assets under management as of June 30.