Blue Owl Capital plans to acquire Prima Capital Advisors for an aggregate consideration of $170 million from Stone Point Capital, an alternative investment firm based in Greenwich, Conn.
The purchase price will comprise about $157 million of equity and approximately $13 million in cash, subject to certain closing consideration adjustments, said a news release April 9.
In addition, there is the potential for up to $35 million of earnout consideration to Stone Point in the form of equity.
Prima, a real estate lender focused primarily on investing in commercial mortgage-backed securities, manages about $10 billion in assets on behalf of institutional investors and select high-net-worth individuals.
The transaction is expected to close in the second or third quarter. At closing, Prima employees are expected to join Blue Owl.
In addition, Jesse Hom will join Blue Owl to lead the newly created real estate finance strategy team and serve as chief investment officer for the real estate platform. Hom will report to Marc Zahr, co-president of Blue Owl and head of real estate.
Hom most recently was global head of real estate credit at GIC, Singapore’s sovereign wealth fund. GIC, which has an estimated $770 billion in assets, could not be immediately reached for further details.
In addition to launching Blue Owl's real estate finance strategy, Hom will also “work to grow the existing triple net lease business and identify strategic opportunities to build out and scale the real estate platform,” the news release said.
“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,” said Blue Owl co-CEOs Doug Ostrover and Marc Lipschultz jointly in the release.
The proposed acquisition of Prima closely follows Blue Owl’s plan to acquire Kuvare Insurance Services, which was announced April 3.
Blue Owl had more than $165 billion in assets under management as of Dec. 31.
