Blue Owl Capital Inc. is strategically selling a portion of its GP Stakes III fund to another investment vehicle it controls to hasten cash returns to investors. Specifically, around 5% of GP Stakes III’s assets are being transferred to the recently launched Blue Owl GP Stakes Atlas Fund I, a continuation fund. This deal, spanning three stages, is projected to generate $365 million in proceeds while retaining majority positions in GP Stakes III’s investments.
The first stage of this transaction was completed last week, valuing the assets at their full fair value and yielding approximately $179 million, a 3.85 times gross realized return on the assets sold. The remaining stages are scheduled for May 2025 and 2026. This move demonstrates the utility of continuation vehicles in providing liquidity for private equity funds while maintaining long-term asset holdings.
Blue Owl Capital is a major player in acquiring equity interests in the management companies of alternative asset managers, commonly referred to as ‘general partners’. The firm has raised five funds focused on this strategy and is currently fundraising for a sixth. Continuation vehicles have emerged as an increasingly popular method for private equity firms to deliver payouts to investors while preserving long-term investments.
Despite multiple attempts, Blue Owl representatives were unavailable for comment. The transaction, meticulously crafted over several months, ultimately aims to reinforce the viability of continuation vehicles as an exit strategy for GP stakes funds.
For more in-depth financial news, visit bloomberg.com.
Original Story https://www.livemint.com/news/blue-owl-speeds-up-payouts-in-fund-buying-partnership-stakes-with-novel-strategy-11723495820429.html
Category :
Tags:
