Linden Announces Minority Investment from Blue Owl's GP Strategic Capital Platform and Lunate

Rhea-AI Summary

Linden Capital Partners, a Chicago-based healthcare private equity firm, has announced a passive minority investment from Blue Owl's GP Strategic Capital platform and Lunate Capital, through a joint venture. Although terms were not disclosed, this partnership aims to bolster Linden's growth and strategic initiatives. Linden, founded in 2004, manages $8 billion in assets and has invested in over 45 healthcare companies. Blue Owl's GP Strategic Capital platform manages $55.8 billion and has executed over 85 equity and debt transactions, while Lunate Capital manages $105 billion. This investment will not alter Linden's day-to-day operations or investment strategies.

Positive

• Blue Owl's GP Strategic Capital and Lunate Capital's investment supports Linden's growth and strategic initiatives.
• Linden manages approximately $8 billion in assets and has a strong track record in healthcare investments.
• The joint venture brings additional balance sheet flexibility to Linden.
• Linden's longstanding focus on creating value for business owners and investors remains steadfast.
• Blue Owl's platform has $55.8 billion of assets under management and extensive transaction experience.
• Lunate Capital, with $105 billion in assets under management, adds substantial financial backing.

Negative

• The terms of the minority investment were not disclosed, limiting transparency for stakeholders.

Insights

Private Equity Analyst

The recent passive minority investment in Linden Capital Partners by Blue Owl's GP Strategic Capital platform and Lunate Capital brings some notable insights into the private equity landscape. This investment underscores Blue Owl and Lunate Capital’s strategy of diversifying their portfolios by leveraging the robust healthcare sector, specifically targeting established platforms with proven track records like Linden.

For investors, this deal highlights a few key points. First, it indicates that large institutional investors have confidence in Linden's ability to generate substantial returns. Linden's focus on healthcare, a resilient and often counter-cyclical sector, adds a layer of stability to Blue Owl and Lunate's diverse investments. Second, the infusion of capital will provide Linden with greater financial flexibility, potentially enabling more aggressive acquisitions or investments within the healthcare sector, which could translate to higher returns for their investors.

However, it is essential to note that this is a passive investment, which means there won't be any direct impact on Linden's day-to-day operations or investment strategies. For stakeholders, this translates to no immediate structural changes but potentially more strategic firepower for Linden.

From a risk perspective, the healthcare sector's regulatory landscape can be unpredictable, which could impact Linden's operations. However, Linden's strong historical performance and strategic partnership with industry leaders could help mitigate these risks.

Healthcare Market Analyst

This investment is a significant endorsement of Linden's investment strategy and healthcare focus. The healthcare sector's consistent growth and resilience, especially given the aging population and increasing healthcare needs, make it an attractive area for private equity investments.

Linden's strategic focus on healthcare services, medical products and specialty distribution provides a well-rounded approach to the sector. This diversity within the healthcare space allows Linden to capitalize on various growth areas, reducing dependence on any single sub-sector. Furthermore, the partnership with Blue Owl and Lunate brings in substantial capital that can be deployed to harness emerging opportunities in the healthcare market.

For investors, this move signals confidence in the long-term growth potential of the healthcare sector, backed by Linden's track record of successful investments. The additional financial flexibility provided by this investment could enable Linden to ramp up its efforts in value creation, further enhancing returns.

However, as with any investment in the healthcare sector, there is a degree of uncertainty due to regulatory changes and market dynamics. That said, Linden's extensive experience and strategic focus may buffer against such fluctuations, providing a relatively stable investment avenue.

CHICAGO, May 28, 2024 /PRNewswire/ -- Linden Capital Partners, a Chicago-based healthcare private equity firm, is pleased to announce a passive, minority investment from Blue Owl's GP Strategic Capital platform and Lunate Capital via their joint venture. Terms of the transaction were not disclosed.

Founded in 2004, Linden Capital Partners ("Linden") has grown to become one of the largest dedicated healthcare private equity firms in the US, through a model of partnership with management teams and a rigorous Value Creation Program. Linden has approximately $8.0 billion of regulatory assets under management and has invested in over 45 healthcare companies across more than 350 transactions. Linden invests in middle market platforms in the targeted sub-sectors of healthcare services, medical products, and specialty distribution.

Blue Owl's GP Strategic Capital platform provides minority equity and financing solutions to private capital managers. The platform has $55.8 billion of assets under management and has completed over 85 equity and debt transactions since its inception in 2010. Blue Owl's Business Services Platform is also the largest post-transaction value creation team in the GP Stakes industry.

Lunate Capital is an independent global alternative investment manager with more than 170 employees and $105 billion of assets under management.

In February 2024, Blue Owl's GP Strategic Capital platform formed a joint venture with Lunate. The joint venture targets GPs with a clear sector specialization, differentiated approach, strong leadership and culture, and an established foundation of a durable, stable platform with identifiable key drivers of franchise value.

The passive minority investment supports the continued growth of Linden's investment platform and development of strategic initiatives by bringing additional flexibility to the firm's balance sheet. The investment will not have an impact on the day-to-day management and investment strategies of Linden.

"Over the past 20 years, we have had a relentless focus on supporting outstanding healthcare companies. Our goal of generating exceptional value for business owners and investors continues as we leverage our team of operating partners, investment professionals, and industry network to drive growth across our portfolio," said Tony Davis, Linden Co-Founder and President. "Our strategic partnership with Blue Owl GP Strategic Capital and Lunate, both of whom Linden considers to be industry leaders in global private capital markets, marks another important step in the continued development of our platform, at a time when we see enormous opportunity to deliver further long-term sustainable growth and value creation."

"We are excited to partner with Linden, one of the leading specialist healthcare private equity platforms in the US," said Michael D. Rees, Co-President and Head of Blue Owl's GP Strategic Capital platform. "Linden's strong investment track record, coupled with the firm's differentiated partnership approach and strategic industry network give us confidence in Linden's continued growth and success."

Linden was advised by Evercore as financial advisor and Kirkland & Ellis as legal counsel. Blue Owl was advised by BofA Securities as financial advisor and by Fried, Frank, Harris, Shriver & Jacobson LLP as legal counsel.

About Linden
Linden Capital Partners is a Chicago-based private equity firm focused exclusively on the healthcare industry. Founded in 2004, Linden is the country's largest dedicated healthcare private equity firm by total buyout capital raised. Linden's strategy is based upon three elements: (i) healthcare specialization, (ii) integrated private equity and operating expertise, and (iii) its differentiated human capital program. Linden invests in middle market platforms in the medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Since its founding, Linden has invested in over 45 healthcare companies encompassing over 350 total transactions. The firm has approximately $8.0 billion in regulatory assets under management. For more information, please visit www.lindenllc.com.

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, Blue Owl invests across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, Blue Owl provides businesses with private capital solution 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.

About Lunate
Lunate is an Abu Dhabi-based, partner-led, independent global alternative investment manager with more than 170 employees and $105 billion of assets under management. Lunate invests across the entire private markets spectrum, including buyouts, growth equity, early and late-stage venture capital, private credit, real assets, and public equities and public credit. Lunate aims to be one of the world's leading private markets solutions providers through SMAs and multi-asset class funds, seeking to generate best-in-class risk-adjusted returns for its clients. Lunate recently established ALTÉRRA, the world's largest private investment vehicle for climate change action, at COP28. For more information, please visit www.lunate.com

Contacts
Linden
IR@lindenllc.com

Blue Owl
Nick.Theccanat@blueowl.com

Lunate
Media@Lunate.com

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SOURCE Linden Capital Partners

FAQ

What is the nature of the investment from Blue Owl's GP Strategic Capital and Lunate Capital in Linden?

It is a passive minority investment aimed at supporting Linden's growth and strategic initiatives.

Will the investment from Blue Owl and Lunate affect Linden's day-to-day operations?

No, the investment will not impact Linden's daily management or investment strategies.

How much in assets does Linden Capital Partners manage?

Linden Capital Partners manages approximately $8 billion in regulatory assets.

What are the assets under management for Blue Owl's GP Strategic Capital platform?

Blue Owl's GP Strategic Capital platform manages $55.8 billion in assets.

How many transactions has Blue Owl's GP Strategic Capital completed?

Blue Owl's GP Strategic Capital platform has completed over 85 equity and debt transactions.

How many employees and assets does Lunate Capital manage?

Lunate Capital has more than 170 employees and manages $105 billion in assets.

When was the joint venture between Blue Owl's GP Strategic Capital platform and Lunate Capital formed?

The joint venture was formed in February 2024.