Blue Owl Capital Completes Acquisition of Prima Capital Advisors

Rhea-AI Summary

Blue Owl Capital (NYSE: OWL) has successfully completed its acquisition of Prima Capital Advisors from Stone Point Capital funds. This deal was initially announced in April 2024. Prima, a real estate lender founded by Gregory White in 1992, specializes in commercial mortgage-backed securities and manages about $10 billion in assets as of March 31, 2024. This acquisition bolsters Blue Owl's Real Estate Finance strategy.

Positive

• Blue Owl Capital completed the acquisition of Prima Capital Advisors.
• Prima Capital Advisors manages approximately $10 billion in assets.
• Prima Capital Advisors specializes in commercial mortgage-backed securities, aligning with Blue Owl's Real Estate Finance strategy.
• The acquisition was completed as planned, adhering to the timeline set in April 2024.

Negative

• The press release does not mention the financial terms of the acquisition, leaving uncertainty about the cost and financial impact.
• Potential risks include integration challenges with Prima Capital Advisors.
• Increased exposure to the commercial mortgage-backed securities market could pose risks if that market faces downturns.

Financial Analyst

Blue Owl Capital's acquisition of Prima Capital Advisors is a significant move in the realm of alternative asset management. Financially, this acquisition adds $10 billion in assets under management (AUM) to Blue Owl's portfolio, thereby enhancing its market clout and diversifying its revenue streams.

One key point for investors is the potential revenue growth derived from Prima's focus on commercial mortgage-backed securities (CMBS). This market segment can offer high returns, but it also comes with enhanced risk, especially in fluctuating real estate markets. Investors should note that CMBS are sensitive to interest rate changes, which could impact the valuation of these assets. Diversifying into real estate finance, however, could provide stable, long-term income streams if managed effectively.

In the short-term, the acquisition could lead to integration costs and potential adjustments in operational strategies. However, in the long-term, this strategic acquisition should bolster Blue Owl's position in the alternative investment space, making it a more formidable player. Investors should monitor Blue Owl's ability to integrate Prima smoothly and achieve the anticipated synergy benefits.

Market Research Analyst

From a market perspective, Blue Owl's move into real estate lending through the acquisition of Prima Capital Advisors is quite telling. The real estate finance market, particularly commercial mortgage-backed securities, is an area with significant growth potential but is also subject to economic cycles and market volatility. By enhancing its portfolio with a solid real estate component, Blue Owl is positioning itself to tap into this potential growth while diversifying its investment risk.

Investors should be aware that the integration and performance of Prima within Blue Owl will be crucial. Market reactions to such acquisitions often hinge on effective synergies and the acquiring firm's ability to maintain or enhance the value of the acquired assets. Prima's strong history since its founding in 1992 adds a layer of credibility and expertise that Blue Owl can leverage.

NEW YORK, June 7, 2024  /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL), a leading alternative asset manager, announced today the completion of its acquisition of Prima Capital Advisers ("Prima") from funds managed by Stone Point Capital LLC. The transaction was previously announced in April 2024.

Prima, founded in 1992 by Gregory White, is a real estate lender focused primarily on investing in commercial mortgage-backed securities. As of March 31, 2024, Prima had approximately $10 billion of assets under management and forms the base of Blue Owl's Real Estate Finance strategy.

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 and individual investors 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.

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-prima-capital-advisors-302166215.html

SOURCE Blue Owl Capital

FAQ

What company did Blue Owl Capital acquire?

Blue Owl Capital acquired Prima Capital Advisors.

When did Blue Owl Capital complete the acquisition of Prima Capital Advisors?

Blue Owl Capital completed the acquisition on June 7, 2024.

What is the focus of Prima Capital Advisors?

Prima Capital Advisors focuses on investing in commercial mortgage-backed securities.

How much in assets does Prima Capital Advisors manage?

Prima Capital Advisors manages approximately $10 billion in assets.

How does the acquisition of Prima Capital Advisors benefit Blue Owl Capital?

The acquisition strengthens Blue Owl's Real Estate Finance strategy by adding Prima's expertise in commercial mortgage-backed securities.