Eldridge Industries Enters Agreement with Blue Owl to Bring Innovative Liquidity Solution to GP Stakes Industry

Rhea-AI Summary

Eldridge Industries has acquired a 10% interest from Blue Owl GP Stakes Fund III, introducing an innovative liquidity solution to the GP stakes industry. This transaction provides liquidity and unlocks value for Blue Owl GP Stakes Fund III investors while positioning Eldridge Industries as a leading provider of GP solutions. Blue Owl GP Stakes Fund III is a passive minority investment vehicle holding stakes in leading private equity firms.

Todd Boehly, Chairman and CEO of Eldridge Industries, expressed excitement about working with Blue Owl on this innovative transaction. Michael Rees, Co-President of Blue Owl and Head of GP Strategic Capital Platform, noted that Eldridge Industries was a natural match for providing a liquidity solution. Blue Owl (NYSE: OWL) is a leading asset manager with over $192 billion in assets under management as of June 30, 2024, investing across Credit, GP Strategic Capital, and Real Estate platforms.

Positive

• Innovative liquidity solution for GP Stakes investors
• Unlocks value for Blue Owl GP Stakes Fund III investors
• Positions Eldridge Industries as a leading provider of GP solutions
• Blue Owl has $192 billion in assets under management

Negative

• None.

Insights

Financial Analyst

This transaction represents a significant development in the GP stakes industry, showcasing an innovative liquidity solution. Eldridge Industries' acquisition of a 10% interest from Blue Owl GP Stakes Fund III provides a new avenue for investors to realize value from their holdings in permanent capital structures. While the financial terms weren't disclosed, this deal likely involves substantial capital, given Blue Owl's $192 billion AUM. For Blue Owl (NYSE: OWL), this partnership with Eldridge could lead to future collaborations and potentially new revenue streams. The deal demonstrates Blue Owl's adaptability in meeting investor needs and could enhance its attractiveness to both current and prospective clients. Long-term, this could strengthen Blue Owl's market position and potentially drive growth in its GP Strategic Capital platform.

Private Equity Expert

This deal marks a pivotal moment in the GP stakes sector, introducing a novel liquidity mechanism that could reshape industry dynamics. By allowing partial exits from permanent capital vehicles, it addresses a key challenge in the GP stakes market - providing liquidity without full divestment. This structure could attract more investors to GP stakes funds, potentially expanding the market. For Blue Owl, it showcases their innovative approach and could give them a competitive edge in fundraising. The partnership with Eldridge, known for its diverse investment portfolio, might also open doors to new investment opportunities or co-investments. However, the impact on fund performance and alignment of interests between the original and new investors will be important to monitor. This transaction could set a precedent, leading to similar deals across the private equity landscape.

NEW YORK--(BUSINESS WIRE)-- Eldridge Industries today announced the acquisition of a 10% interest from Blue Owl GP Stakes Fund III. This innovative structure provides liquidity and unlocks value for Blue Owl GP Stakes Fund III investors while establishing Eldridge Industries as a leading provider of GP solutions. Terms of the transaction were not disclosed.

Blue Owl GP Stakes Fund III is a passive minority investment vehicle that holds stakes in industry-leading private equity firms. The fund provides capital to help firms achieve their growth plans and other strategic goals. This transaction represents an innovative solution to providing liquidity to GP Stakes investors in permanent capital structures.

“We are excited to be working with Blue Owl on this innovative transaction and providing a new liquidity solution for the GP stakes market,” said Todd Boehly, Chairman and CEO of Eldridge Industries. “This demonstrates Blue Owl’s forward-thinking approach to providing liquidity for their LPs and Eldridge Industries’ deep expertise in providing creative capital solutions under David Lee, who leads our GP solutions strategy. We look forward to building on this transaction with Blue Owl and their top-tier GP partners.”

“Eldridge Industries was a natural match to provide a liquidity solution and unlock value for our investors,” said Michael Rees, Co-President of Blue Owl and Head of GP Strategic Capital Platform. “Like Blue Owl, Eldridge Industries has innovation at its core, and we are eager to continue partnering on opportunities in the future.”

Eldridge Industries

Eldridge Industries invests in businesses across the Insurance, Asset Management, Technology, Mobility, Sports & Gaming, Media, Real Estate, and Consumer landscapes. The firm seeks to build and grow businesses led by proven management teams that have demonstrated leadership and experience to scale an enterprise. Eldridge Industries is headquartered in Greenwich, Connecticut, with additional offices in Beverly Hills, New York, and London. To learn more about Eldridge Industries, please visit eldridge.com

Blue Owl

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

With over $192 billion in assets under management as of June 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 820 experienced professionals, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241016207451/en/

Media



Eldridge Industries

Nadia Damouni

ndamouni@prosek.com



Blue Owl

Nick Theccanat

Nick.Theccanat@blueowl.com

Source: Eldridge Industries

FAQ

What is the significance of Eldridge Industries' 10% interest acquisition from Blue Owl GP Stakes Fund III (OWL)?

The acquisition introduces an innovative liquidity solution to the GP stakes industry, providing liquidity and unlocking value for Blue Owl GP Stakes Fund III investors while positioning Eldridge Industries as a leading provider of GP solutions.

How much assets under management does Blue Owl (OWL) have as of June 30, 2024?

Blue Owl (NYSE: OWL) has over $192 billion in assets under management as of June 30, 2024.

What are the three multi-strategy platforms Blue Owl (OWL) invests across?

Blue Owl (OWL) invests across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate.

Who are the key executives mentioned in the Eldridge Industries and Blue Owl (OWL) transaction?

The key executives mentioned are Todd Boehly, Chairman and CEO of Eldridge Industries, and Michael Rees, Co-President of Blue Owl and Head of GP Strategic Capital Platform.