- The acquisition will amount to $20 billion in AUM for Blue Owl and support the launch of Blue Owl Insurance Solutions
- Blue Owl also invested $250 million at Kuvare UK Holdings
NEW YORK, April 3, 2024 /PRNewswire/ — Blue Owl Capital Inc. (“Blue Owl”) OWLa leading alternative asset manager, announced today that it has signed a definitive purchase agreement to acquire Kuvare Insurance Services LP (dba Kuvare Asset Management) (“KAM”) for $750 million. KAM is a boutique investment management firm focused on providing asset management services to the insurance industry, including Kuvare UK Holdings (“Kuvare”). Blue Owl will finance the acquisition of KAM through a combination of $325 million in cash and $425 million in Blue Owl Class A common stock. The KAM acquisition is expected to close in the second or third quarter of 2024 and remains subject to customary regulatory approvals and other closing conditions and specific termination rights. Once the KAM acquisition closes, the majority of KAM employees are expected to join Blue Owl. Furthermore, there is the possibility that up to a $250 million earnings subject to certain adjustments and achievement of future income goals.
Separately, Blue Owl today made a long-term investment in Kuvare, purchasing $250 million of preferred shares. This investment creates long-term alignment between Blue Owl and Kuvare and provides valuable growth capital to Kuvare's insurance companies, each of which will become new Blue Owl asset management clients. Founded in 2015, Kuvare is a technology-based financial services company that operates several insurance and reinsurance businesses and has become one of the top 20 issuers of fixed and indexed annuities in the world. the United States. Kuvare's business segments include retail, institutional reinsurance and specialty insurance advisory services.
In addition to the preferred equity investment, Blue Owl and Kuvare entered into investment management agreements (“IMAs”) that will allow Blue Owl to deploy up to $3 billion of assets in its existing Credit, GP Strategic Capital and Real Estate investment platforms, which may grow over time. Following the closing of the KAM acquisition, Blue Owl will be assigned up to $20 billion of AUM, in aggregate. Kuvare will continue to manage overall asset allocations for its insurance and strategic investment businesses. Blue Owl's IMAs with Kuvare insurance companies will add to Blue Owl's permanent capital base while enhancing Kuvare's investment capabilities.
These transactions are expected to be profitable for Blue Owl in 2024.
David OstroverCo-CEO of Blue Owl, said: “The creation of Blue Owl Insurance Solutions represents an important moment in Blue Owl's journey. Our acquisition of KAM allows us to provide broader solutions to the multi-billion dollar insurance market at scale. KAM's capabilities in “Investment-grade credit and real estate strategies complement Blue Owl's existing strength in these asset classes and further accelerate our ability to bring differentiated products and strategies to market for Kuvare and third-party insurance clients.”
Marc LipschultzCo-CEO of Blue Owl, said: “Our preferred equity investment in Kuvare reflects our confidence in the business's growth trajectory, both through its extensive distribution network and proven reinsurance strategy. This partnership with Kuvare anchors the Blue Owl's growing presence in the insurance channel, greatly complementing our strong institutional and equity footprint and further diversifying the markets for which we provide investment solutions. Collectively, we believe these transactions reflect a creative approach to expanding our offers for the insurance market at an attractive price”.
Dhiren JhaveriFounder, Chairman and CEO of Kuvare added: “It is an important and exciting step in Kuvare's evolution to partner in such an impactful way with an asset manager of Blue Owl's caliber. We always strive to be excellent stewards of the assets entrusted to us.” to our policyholders and reinsurance partners, and the Blue Owl team has demonstrated a unique commitment to helping us achieve our objectives. We especially look forward to continuing to collaborate with our valued colleagues at KAM who will join the Blue Owl team upon the closing of this transaction. ”
A supplemental investor presentation regarding the transaction is available on the shareholders section of Blue Owl's website at www.blueowl.com.
Ardea Partners LP and PJT Partners LP are acting as lead financial advisors to Blue Owl in connection with the transactions. BofA Securities, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho and its subsidiary Greenhill & Co, Morgan Stanley & Co. LLC and Truist Securities, Inc. are also acting as co-financiers. Blue Owl advisors. Kirkland & Ellis LLP acted as legal counsel to Blue Owl.
JP Morgan Securities LLC is acting as lead financial advisor to KAM and co-placement agent for the investment in Kuvare. RBC acts as financial advisor to Kuvare and as co-placement agent for the investment in Kuvare. Sidley Austin LLP acted as legal counsel to Kuvare.
About the blue owl
blue owl OWL is a leading asset manager that is redefining alternatives.
More than $165 billion in assets under management as of December 31, 2023, we invest in three multi-strategy platforms: credit, GP Strategic Capital and Real Estate. Anchored in a strong permanent capital base, we provide companies with private equity 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 preservation of capital.
Together with more than 685 experienced professionals around the world, Blue Owl brings the vision and discipline to create the exceptional. For more information, visit www.blueowl.com.
About Kuvare Holdings
Kuvare is a technology-based financial services platform that offers life insurance and annuity products to consumers, reinsurance solutions for institutional markets, advisory services to insurance companies, as well as asset management solutions. Based in the chicago area, and founded in 2015, Kuvare has $37 billion of assets and is committed to a long-term sustainable growth strategy. The Kuvare family of companies includes Lincoln Benefit Life Company, Guaranty Income Life Insurance Company, United Life Insurance Company and Kuvare Life Re (Bermuda Islands) and Ignite Partners. For more information about Kuvare, visit https://kuvare.com.
Forward-looking statements
Certain statements made in this press 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”, “goal”, “target”, “objective”, “outlook” and variations of these words or similar expressions (or negative versions of such words or expressions) are intended 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 undertakes 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 beyond the control of Blue Owl, which could cause actual outcomes or results. . differ materially from those discussed in the forward-looking statements.
Important factors, among others, that could affect actual results include the risk that the KAM acquisition may not close on a timely basis, if at all; failure to recognize the anticipated benefits of strategic acquisitions; acquisition-related costs; the inability to maintain the listing of Blue Owl's stock 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; possible litigation involving Blue Owl; changes in applicable laws or regulations; and the possibility that Blue Owl may be adversely affected by other economic, business, geopolitical and competitive factors.
Contacting Blue Owl Investors
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com
Blue Owl Media Contact
Nick Theccanat
Director, Corporate Communications and Government Affairs
Nick.Theccanat@blueowl.com
Kuvare Media Contact
Erica Davis
Director of Corporate Communications
media@kuvare.com
800-637-6318
SOURCE Blue Owl Capital
