Blue Owl Capital Completes Acquisition of IPI Partners' Business

Rhea-AI Summary

Blue Owl Capital (NYSE: OWL), a leading alternative asset manager, has announced the completion of its acquisition of IPI Partners business, a digital infrastructure fund manager. As of September 30, 2024, IPI managed over $11 billion in assets. The acquisition will enhance Blue Owl's digital infrastructure strategy within its Real Estate platform. IPI's Managing Partner, Matt A'Hearn, has been appointed Head of Blue Owl's digital infrastructure strategy and will report to Blue Owl Co-President and Head of Real Estate, Marc Zahr.

Positive

• Completion of the acquisition enhances Blue Owl's digital infrastructure strategy.
• IPI Partners managed over $11 billion in assets as of September 30, 2024.
• Appointment of Matt A'Hearn as Head of Digital Infrastructure Strategy.

Negative

• None.

Insights

Investment Banking Analyst

The acquisition of IPI Partners by Blue Owl Capital represents a strategic expansion into the high-growth digital infrastructure sector. With IPI's $11 billion AUM integration, Blue Owl significantly strengthens its real estate platform and diversifies its revenue streams. Digital infrastructure assets, including data centers and fiber networks, are experiencing robust demand driven by cloud computing, 5G deployment and AI advancement. This acquisition positions Blue Owl to capitalize on these secular trends. The deal's structure, retaining key leadership with Matt A'Hearn, ensures operational continuity and expertise retention. For investors, this translates to enhanced exposure to digital infrastructure investments through an established platform, potentially driving long-term value creation and steady fee-based income streams.

Real Estate Investment Specialist

The IPI Partners acquisition marks a pivotal move in Blue Owl's real estate strategy, particularly in the digital infrastructure space. Data center real estate has emerged as a important subsector with compelling fundamentals - high barriers to entry, stable cash flows and growing demand from tech tenants. IPI's portfolio and expertise in digital infrastructure assets complement Blue Owl's existing real estate platform under Marc Zahr's leadership. The timing is strategic, as digital infrastructure valuations remain attractive despite market volatility. This positions Blue Owl to benefit from the increasing institutional capital allocation to digital infrastructure assets, which typically offer inflation-protected returns and long-term growth potential.

Technology Infrastructure Analyst

The integration of IPI Partners into Blue Owl's platform is particularly significant given the accelerating digital transformation across industries. Digital infrastructure assets are becoming critical components of modern business operations, with data centers serving as the backbone of cloud services, AI operations and edge computing. IPI's specialized expertise in this sector, combined with Blue Owl's institutional platform and capital access, creates a powerful combination for capturing opportunities in the rapidly evolving digital infrastructure landscape. The retention of Matt A'Hearn as strategy head ensures continuity in relationships with tech tenants and maintains the specialized knowledge needed for successful digital infrastructure investments.

NEW YORK, Jan. 6, 2025 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL), a leading alternative asset manager, announced today the completion of its previously announced acquisition of the business of digital infrastructure fund manager IPI Partners, LLC ("IPI").

As of September 30, 2024, IPI had over $11 billion of assets under management. IPI's Managing Partner, Matt A'Hearn has been appointed Head of Blue Owl's digital infrastructure strategy and will report to Blue Owl Co-President and Head of Real Estate Marc Zahr.

The completion of the acquisition of IPI's business further enhances Blue Owl's digital infrastructure strategy as part of the firm's Real Estate platform.

About Blue Owl:

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

With $235 billion in assets under management as of September 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 1,050 experienced professionals, 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; 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

 

View original content:https://www.prnewswire.com/news-releases/blue-owl-capital-completes-acquisition-of-ipi-partners-business-302342714.html

SOURCE Blue Owl Capital

FAQ

What does the OWL acquisition of IPI Partners mean for shareholders?

The acquisition is expected to enhance Blue Owl's digital infrastructure strategy, potentially leading to growth and increased value for shareholders.

How much in assets did IPI Partners manage before the acquisition?

As of September 30, 2024, IPI Partners managed over $11 billion in assets.

Who will lead Blue Owl's digital infrastructure strategy after the acquisition?

IPI's Managing Partner, Matt A'Hearn, has been appointed Head of Blue Owl's digital infrastructure strategy.

When was the OWL acquisition of IPI Partners completed?

The acquisition was announced as completed on January 6, 2025.

What impact will the acquisition have on Blue Owl's Real Estate platform?

The acquisition will further enhance Blue Owl's digital infrastructure strategy within its Real Estate platform.