Blue Owl Capital Announces Agreement to Acquire Funds Managed by Cowen Healthcare Investments from Cowen Investment Management (CIM)

Rhea-AI Summary

Blue Owl Capital Inc. has announced an agreement to acquire funds managed by Cowen Healthcare Investments (CHI), a life sciences investment manager, adding approximately $1 billion in assets under management. The acquisition will strengthen Blue Owl's market presence in the life sciences sector, with a focus on mid-to-late-stage equity investments in biopharmaceutical and healthcare companies. CHI's team will become full-time Blue Owl employees, and CHI's funds will be rebranded as Blue Owl Healthcare Opportunities.

Acquisition of life sciences investment manager's funds will add ~$1 billion in assets under management and bolster Blue Owl's presence in the sector.

NEW YORK, Oct. 30, 2023 /PRNewswire/ -- Blue Owl Capital Inc. (NYSE: OWL) ("Blue Owl") today announced an agreement to acquire funds managed by Cowen Healthcare Investments ("CHI"), a life sciences investment manager, from CIM. The transaction is subject to customary closing conditions and expected to close in the fourth quarter of 2023.

The acquisition will add approximately $1 billion in assets across several funds and further strengthen Blue Owl's market presence in the life sciences sector with an emphasis on mid-to-late-stage equity investments into biopharmaceutical and healthcare companies. As part of the transaction, the CHI team will become full-time Blue Owl employees, including senior leaders Kevin Raidy, Tim Anderson and Rob Sine. Upon completion of the transaction, CHI's funds will be rebranded to Blue Owl Healthcare Opportunities.

"The rapid level of innovation within science and technology is driving a deep need for private capital solutions to support the life sciences sector's exponential growth," said Marc Lipschultz, Co-CEO of Blue Owl Capital. "Adding CHI to Blue Owl expands our ability to better meet the needs of our investors and users of our capital who are focused on the life sciences sector."

"CHI is a well-respected team within Life Sciences whom I've had the privilege of getting to know over the years," said Sandip Agarwala, Managing Director at Blue Owl Capital. "We believe the addition of this team to our platform is highly complementary to our current investment strategy in terms of domain expertise, network, and breadth of life science capabilities."

Blue Owl's Life Science efforts are focused on credit, royalty and growth equity investments in innovative biopharmaceutical, medical technology, and healthcare companies and products. Recent transactions include the acquisition of a royalty interest in Novartis' PLUVICTO (Lutetium 177Lu vipivotide tetraxetan) for the treatment of metastatic castration resistant prostate cancer, and an economic interest in Horizon Therapeutics' TEPEZZA (teprotumumab-trbw) for the treatment of Thyroid Eye Disease.

As part of Blue Owl, CHI will continue to invest primarily in mid-development stage biotherapeutics. Adding CHI's team and capabilities allow Blue Owl to further develop a multi-strategy Life Sciences offering, investing across growth stages and capital structure with shared resources and relationships.

SMBC served as financial advisor to Blue Owl Capital.

About Blue Owl Capital Inc.

Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives.

With $150 billion in assets under management as of June 30, 2023, 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 and individual investors differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 600 experienced professionals across 10 offices globally, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.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 ("NYSE"); 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 & Public Policy
Nick.Theccanat@blueowl.com

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SOURCE Blue Owl Capital

FAQ

What is Blue Owl Capital acquiring?

Blue Owl Capital is acquiring funds managed by Cowen Healthcare Investments (CHI), a life sciences investment manager.

How much will the acquisition add to Blue Owl's assets under management?

The acquisition will add approximately $1 billion in assets under management to Blue Owl.

What is the focus of Blue Owl's investment in the life sciences sector?

Blue Owl's investment in the life sciences sector focuses on mid-to-late-stage equity investments in biopharmaceutical and healthcare companies.

What will happen to CHI's team after the acquisition?

CHI's team will become full-time Blue Owl employees.

What will happen to CHI's funds after the acquisition?

CHI's funds will be rebranded as Blue Owl Healthcare Opportunities.