Global alternative investment manager Blue Owl has formed a joint venture with its Abu Dhabi-based counterpart Lunate to invest in mid-sized private market managers, according to an announcement.
The joint venture will acquire minority stakes in private market investment managers with fee-paying assets under management of less than $10 billion.
The target will be GPs with a clear sector specialisation, differentiated approach, strong leadership and culture, and an established foundation of a durable, stable platform with identifiable key drivers of franchise value, per the announcement.
“We think the combined effort will be truly differentiated for mid-sized GPs and be complementary to our existing strategy focused on larger managers,” said Blue Owl’s Michael Rees.
Listed in the US, Blue Owl invests across three multi-strategy platforms — credit, GP strategic capital, and real estate. It has $157 billion in assets under management as of September last year.
Lunate, on the other hand, is a global alternative investment manager that has $105 billion in assets under management. It invests primarily in private markets through multi-asset class approach, including PE, venture capital, private credit, real assets, and public equities and public credit.
“Our joint venture with Blue Owl 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,” said Khalifa Al Suwaidi, Managing Partner at Lunate.
Last year, Abu Dhabi state fund Mubadala Investment Company committed $1 billion to Blue Owl Capital’s credit platform under a strategic partnership. The investment will initially focus on providing financing for technology companies.