Blue Owl Capital Completes Acquisition of Kuvare Asset Management

Rhea-AI Summary

Blue Owl Capital (NYSE: OWL) has completed its acquisition of Kuvare Asset Management (KAM), a boutique investment management firm with $20 billion in assets under management as of May 31, 2024. The acquisition, initially announced in April 2024, allows Blue Owl to enhance its capabilities in serving the insurance market, marking the launch of Blue Owl Insurance Solutions. This new division will integrate Blue Owl's focused alternatives approach with expanded industry capabilities, allowing the firm to serve insurance clients more comprehensively. The move is expected to support Blue Owl's growth by strengthening relationships with insurance companies and providing a diversified source of capital.

Positive

• Completion of the acquisition of KAM, which manages $20 billion in assets.
• Launch of Blue Owl Insurance Solutions, enhancing service to insurance clients.
• Expanded industry capabilities to better serve insurance market needs.
• Increased diversified capital sources from expanded relationships with insurance companies.

Negative

• None.

Insights

Financial Analyst

Blue Owl Capital’s acquisition of Kuvare Asset Management (KAM) signifies a strategic move to enhance its services in the insurance sector. By incorporating KAM’s $20 billion in assets under management, Blue Owl diversifies its revenue streams, which can potentially stabilize earnings during market volatilities. Insurance clients typically require stable and long-term asset management solutions, aligning with Blue Owl's strategy to offer diversified financial services.

In the short-term, we can expect integration costs and potential restructuring expenses. However, the long-term benefits include expanded market share in the insurance segment, which can lead to increased revenue and profitability. Investors should also consider the potential economies of scale and cross-selling opportunities within Blue Owl's existing client base.

Overall, this acquisition aligns with industry norms where asset managers expand their service offerings to include specialized sectors, thereby attracting a broader client base and securing diversified sources of income.

Market Research Analyst

From a market perspective, the acquisition of KAM by Blue Owl Capital is timely and strategic. The insurance sector's growing demand for specialized asset management solutions presents a substantial growth opportunity. By launching Blue Owl Insurance Solutions, Blue Owl is positioning itself to capitalize on this trend by catering to the unique needs of insurance companies, which often require conservative investment strategies focused on capital preservation and steady returns.

This move not only expands Blue Owl's client base but also enhances its competitive edge in the alternative asset management industry. The firm can leverage KAM’s expertise and existing relationships within the insurance sector to drive growth. This acquisition is a clear indication that Blue Owl is looking to diversify its capabilities, which can lead to enhanced value for shareholders over time.

NEW YORK, July 2, 2024 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL), a leading alternative asset manager, announced today the completion of its acquisition of Kuvare Insurance Services LP (dba Kuvare Asset Management) ("KAM"). The transaction was previously announced in April 2024.

KAM is a boutique investment management firm with approximately $20 billion of assets under management as of May 31, 2024. KAM is focused on providing asset management services to the insurance industry, including Kuvare UK Holdings.

Blue Owl's acquisition of KAM enhances its ability to serve the insurance market at scale and marks the official launch of Blue Owl Insurance Solutions. Working seamlessly across the firm's investment platforms, Insurance Solutions combines the focused alternatives approach with expanded industry capabilities to now serve insurance clients across a broader range of their needs.

The establishment of Insurance Solutions supports Blue Owl's next stage of growth by expanding relationships with insurance companies and providing the firm with a large and diversified source of capital.

About Blue Owl

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

With over $174 billion in assets under management as of March 31, 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 725 experienced professionals 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; 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.

Blue Owl Investor Contact
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com

Blue Owl 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-kuvare-asset-management-302187155.html

SOURCE Blue Owl Capital Inc.

FAQ

What is the impact of Blue Owl Capital's acquisition of Kuvare Asset Management on their stock?

The acquisition enhances Blue Owl's ability to serve the insurance market and launch Blue Owl Insurance Solutions, potentially widening its market and increasing diversified capital sources, which could positively impact the stock.

When was Blue Owl Capital's acquisition of Kuvare Asset Management completed?

The acquisition was completed on July 2, 2024.

What is the strategic importance of Blue Owl Capital acquiring Kuvare Asset Management?

The acquisition enables Blue Owl to launch Blue Owl Insurance Solutions, enhancing its service to insurance clients and expanding industry capabilities, which supports the company's growth and diversification of capital.

How does Blue Owl Capital plan to integrate Kuvare Asset Management into its operations?

Blue Owl plans to integrate KAM by launching Blue Owl Insurance Solutions, which will combine the firm's focused alternatives approach with expanded capabilities to serve insurance clients comprehensively.

What is the value of assets under management by Kuvare Asset Management?

Kuvare Asset Management has approximately $20 billion in assets under management as of May 31, 2024.