- Acquisition of digital infrastructure fund manager will add
approximately $10.5 billion in assets
under management and further augment Blue Owl's existing digital
infrastructure strategy.
NEW
YORK, Oct. 7, 2024 /PRNewswire/ -- Blue Owl
Capital Inc. ("Blue Owl") (NYSE: OWL), a leading alternative asset
manager, announced today it has entered into a definitive agreement
to acquire the business of digital infrastructure fund manager IPI
Partners, LLC ("IPI") from an affiliate of ICONIQ Capital
("ICONIQ") and an affiliate of Iron Point Partners ("Iron Point")
for a purchase price of approximately $1.0
billion. The purchase price will be comprised of
approximately 80 percent Blue Owl equity and approximately 20
percent cash. The acquisition is expected to close in the fourth
quarter of 2024 or first quarter of 2025, subject to certain
closing conditions including third party consents, and is expected
to be neutral to Blue Owl's earnings in 2025 and modestly accretive
in 2026. Blue Owl will partner with an affiliate of ICONIQ to help
accelerate the future growth of the business.
IPI has approximately $10.5
billion in assets under management as of June 30, 2024 and was founded in 2016 as a joint
venture between ICONIQ and Iron Point to service the needs of
large, high-quality hyperscale and enterprise datacenter users. The
IPI platform has grown into one of the largest private US-based
data center investors with a portfolio of 82 data centers
comprising over 2.2GWs of leased capacity across the US, EMEA and
APAC. Tenants are primarily investment grade corporations,
including several Fortune 100 companies. The firm is based in
Chicago, IL with over 70 team
members in global offices and over 50 investment professionals.
IPI's employees are expected to join Blue Owl and will continue to
manage IPI's existing funds.
Upon closing of the acquisition, IPI's business will further
enhance Blue Owl's digital infrastructure strategy as part of the
firm's Real Estate platform, which will continue to be led by Blue
Owl Co-President Marc Zahr. IPI's
Managing Partner, Matt A'Hearn will become Head of Blue Owl's
digital infrastructure strategy and report to Blue Owl Co-President
Marc Zahr.
An affiliate of ICONIQ will enter into an agreement with Blue
Owl to provide services to Blue Owl's business, including, but not
limited to, investment analysis and investor relations. In exchange
for these services, an affiliate of ICONIQ is eligible for services
payments, that are subject to certain future targets. Blue Owl
anticipates these payments will be made between 2026 and 2028.
Blue Owl's Co-CEOs Doug Ostrover
and Marc Lipschultz said: "The
acquisition of IPI with its deep sector expertise complements our
existing net lease strategy while providing an ideal opportunity to
expand Blue Owl's digital infrastructure strategy. There is a
massive market opportunity to finance data centers, matched by an
increasing investor appetite for additional strategies investing
behind cloud and AI-driven secular tailwinds. IPI's tenured
investment team, preeminent LP-base and global scale in the digital
infrastructure economy will enhance our suite of capital solutions
and investment offerings, further strengthening our position as a
partner of choice. Investors can benefit greatly from the
combination of Blue Owl's triple net lease knowledge and IPI's
depth in the data centers market."
Divesh Makan, a Founding Partner
at ICONIQ, said, "It has been a privilege to help build IPI over
the past eight years and to secure trust with many of the largest
data center customers in the world. During this time, IPI has grown
into one of the largest private developers and investors of data
centers globally by solving problems for the leading global
technology companies. We are excited to deepen our existing
partnership with Blue Owl to advance IPI's market leadership and
further execute on this generational opportunity."
Tom Lynch, a Managing Partner at
Iron Point, added, "We are proud to have been partners with ICONIQ
in the formation and growth of IPI, and we are confident that the
addition of Blue Owl will enable IPI to achieve even greater scale
to meet the needs of the world's largest technology
companies."
Matt A'Hearn, Managing Partner of IPI, said, "On behalf of the
IPI team, we are incredibly excited to join Blue Owl and serve as
the foundation for expanding the firm's digital infrastructure
strategy, further complementing their market-leading net lease
strategy. We are also grateful to our partners at ICONIQ and Iron
Point, who were instrumental in helping us become one of the most
scaled digital infrastructure managers. We believe there's a
tremendous amount that IPI can accomplish within the Blue Owl
ecosystem alongside our partners at ICONIQ, and look to extend our
market leading position."
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC,
Morgan Stanley & Co. LLC, Societe Generale, and TD Securities
(USA) LLC are acting as
co-financial advisors to Blue Owl in connection with the
acquisition. Kirkland & Ellis LLP is acting as legal advisor to
Blue Owl.
Gibson, Dunn & Crutcher LLP is acting as legal advisor to
IPI. Berkshire Global Advisors L.P. is serving as financial advisor
to Iron Point.
A supplemental investor presentation with respect to the
acquisition is available on the shareholders section of Blue Owl's
website at www.blueowl.com.
Investor Call Details:
Blue Owl will host a conference call on Monday, October 7, 2024 at 8:30 a.m. ET to discuss the transaction.
Blue Owl invites all interested to participate via telephone or
the live webcast. To register, please visit the Investor Resources
section of Blue Owl's website at
https://ir.blueowl.com/overview.
Participants are also invited to access the conference call by
dialing one of the following numbers:
Domestic (Toll Free): (888)
330-2454
International: +1(240) 789-2714
Conference ID: 4153114
All callers will need to enter the Conference ID followed by the
# sign. All callers are asked to dial in 10-15 minutes prior to the
call so that name and company information can be collected.
About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset manager that is
redefining alternatives.
With over $192 billion in assets
under management as of June 30, 2024,
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 investors,
individual investors, and insurance companies differentiated
alternative investment opportunities that aim to deliver strong
performance, risk-adjusted returns, and capital preservation.
Together with over 820 experienced professionals, Blue Owl
brings the vision and discipline to create the exceptional. To
learn more, visit www.blueowl.com.
About ICONIQ Capital
ICONIQ Capital is a global investment firm elevated by an
extraordinary community. With over $80B assets under management, we seek to build
resilient investment portfolios, partner with inspired
entrepreneurs transforming industries, manage our clients' lives
and legacies, and create uncommon opportunities across sectors and
society.
About Iron Point
Iron Point Partners is a leading private equity firm targeting
investments in real estate and other real assets throughout
North America. Consistent with the
firm's family office heritage, Iron Point pursues a thematic,
value-oriented investment approach across traditional and specialty
property sectors. Since inception, and as of June 30, 2024, Iron Point and its affiliates have
raised $10.4 billion in equity
capital commitments across numerous multi-strategy and
sector-focused investment vehicles.
Iron Point has offices located in Washington D.C.
To learn more, visit www.ironpointpartners.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