Blue Owl Capital Announces Agreement to Acquire Wellfleet Credit Partners from Littlejohn & Co.

Rhea-AI Summary

Blue Owl Capital Inc. (NYSE: OWL) announced the acquisition of Wellfleet Credit Partners LLC from Littlejohn & Co. The deal, expected to close in March 2022, includes cash-funded upfront and earnout payments. Wellfleet, managing $6.5 billion in assets across 16 CLOs, will enhance Blue Owl's Owl Rock division with its unique expertise in the syndicated loan market. The acquisition will retain Wellfleet's leadership, strengthening Blue Owl's strategic capabilities in credit solutions.

Positive

• Acquisition of Wellfleet enhances Blue Owl's Owl Rock division.
• Wellfleet manages $6.5 billion in assets across 16 CLOs, providing strategic growth.
• Retaining Wellfleet's seasoned management team adds institutional knowledge.

Negative

• None.

NEW YORK, Feb. 16, 2022 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) announced today it has entered into a definitive purchase agreement to acquire Wellfleet Credit Partners LLC ("Wellfleet") from affiliates of Littlejohn & Co., LLC ("Littlejohn"). The transaction is expected to close in March 2022 and is subject to customary closing conditions. The purchase price consists of upfront and earnout payments, which will be primarily funded by cash. Upon closing, Wellfleet will become part of Blue Owl's Owl Rock division, reporting into Craig Packer, Co-Founder and a Senior Managing Director of Blue Owl.

"We are excited to welcome Scott, Dennis and the rest of the Wellfleet team. Wellfleet adds a complementary, scalable business to Owl Rock's existing platform of credit solutions. Wellfleet's unique expertise, together with its deep institutional knowledge of the syndicated loan market and strong credit research platform, will enhance the overall strategic capabilities of the Owl Rock business," said Craig Packer.

Founded in 2015 as the performing credit arm of Littlejohn, a private investment firm based in Greenwich, CT, Wellfleet focuses on the management of CLO portfolios of broadly syndicated leveraged loans. Wellfleet also invests in third-party CLO equity and junior mezzanine tranches on behalf of separately managed accounts. The platform manages 16 CLOs with over $6.5 billion in assets under management as of December 31, 2021 and is led by seasoned leveraged finance professionals Scott McKay and Dennis Talley. Following the closing of the transaction, both McKay and Talley will continue serving as lead portfolio managers for the platform as employees of Blue Owl.

Scott McKay commented on behalf of Wellfleet: "The Wellfleet team is excited to partner with Blue Owl as the cultural and strategic fit will further enhance our leadership in the products we manage. We would also like to thank the partners at Littlejohn for their seven years of unyielding support and look forward to their ongoing investment in Wellfleet managed funds."

Additionally, Michael Klein, Chief Executive Officer of Littlejohn, added: "Scott and Dennis helped build a highly successful, scalable and enduring CLO franchise that is poised for continued growth. We wish them continued success." 

Kirkland & Ellis LLP acted as legal counsel and GreensLedge served as financial advisor to Blue Owl. Stradley Ronon acted as legal counsel to Littlejohn.

About Blue Owl Capital Inc.

Blue Owl is a global alternative asset manager with $82.9* billion in assets under management as of September 30, 2021. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Solutions and Real Estate strategies on behalf of Institutional and Private Wealth clients. Blue Owl's flexible, consultative approach helps position the firm as a partner of choice for businesses seeking capital solutions to support their sustained growth. The firm's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Blue Owl employs over 350 people across 9 offices globally. For more information, please visit us at www.blueowl.com.

*Pro forma as of 9/30/21 to include AUM attributable to Oak Street which became a division of Blue Owl on December 29, 2021.

About Littlejohn & Co., LLC

Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on both private equity and credit opportunities in middle-market companies. The Firm seeks to build sustainable success for its investments through a disciplined approach to engineering change. For more information about Littlejohn, visit www.littlejohnllc.com. 

Investor Contact:
Ann Dai
+1 (212) 651-4719
blueowlir@blueowl.com 

Media Contacts:
For Blue Owl
Prosek Partners
David Wells / Nick Theccanat
pro-blueowl@prosek.com

For Littlejohn & Co.
Jonathan Gasthalter/Nathaniel Garnick/Grace Cartwright
Gasthalter & Co.
(212) 257-4170

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SOURCE Blue Owl Capital Inc.

FAQ

What is the significance of Blue Owl's acquisition of Wellfleet Credit Partners?

The acquisition enhances Blue Owl's capabilities in credit solutions by bringing in Wellfleet's expertise and significant asset management.

What is the expected timeline for the acquisition of Wellfleet by Blue Owl?

The transaction is expected to close in March 2022, subject to customary closing conditions.

How much does Wellfleet Credit Partners manage in assets?

Wellfleet manages over $6.5 billion in assets across 16 CLOs as of December 31, 2021.

Who are the key leaders of Wellfleet Credit Partners post-acquisition?

Scott McKay and Dennis Talley will continue as lead portfolio managers for Wellfleet as employees of Blue Owl.