Alternative investment managers Blue Owl Capital and Lunate launched a joint venture to take minority stakes in midsize private markets firms.
Blue Owl is a $157 billion credit, general partner strategic capital and real estate manager based in New York. Abu Dhabi-based Lunate, which is backed by Abu Dhabi Developmental Holding Co., known as ADQ, according to Bloomberg, manages $105 billion in assets across private equity, venture capital, private credit, real assets, public equities and public credit.
The two firms will look to acquire minority stakes in private market investment managers with less than $10 billion in assets under management. Its targets will be GPs with a "clear sector specialization, differentiated approach, strong leadership and culture, and an established foundation of a durable, stable platform with identifiable key drivers of franchise value," a joint news release said.
"We are excited to partner with Lunate, which is a leading global private markets solutions provider based out of Abu Dhabi," said Michael Rees, co-president of Blue Owl, in the release. "They bring valuable investment experience as both an LP and minority GP stake investor. We think the combined effort will be truly differentiated for mid-sized GPs and be complementary to our existing strategy focused on larger managers."
The joint venture "speaks to Lunate's aim of identifying and investing in a mid-sized GP stakes strategy that will enable our clients to participate in the broader dynamics of private markets investing," added Khalifa Al Suwaidi, managing partner at Lunate, in the same release.
Each firm's contribution to the new joint venture could not immediately be learned. Spokespersons did not immediately respond to a request for comment.