Alternative asset manager Blue Owl Capital and Lunate, an alternative investment manager headquartered in Abu Dhabi that manages $105 billion in assets, formed a joint venture to provide growth capital to mid-sized private capital GPs.
The joint venture will seek to acquire minority stakes in private market investment managers with fee-paying assets under management of less than $10 billion. The joint venture plans to target GPs with a clear sector specialization, differentiated approach, strong leadership and culture, and an established foundation and stable platform with identifiable drivers of franchise value.
Lunate invests primarily in private markets through a multi-asset class approach, including private equity, venture capital, private credit, real assets, and public equities and public credit. Lunate, together with Blue Owl’s GP Strategic Capital platform, will create a proposition in the mid-market segment for GPs seeking growth capital and strategic partnerships.
“We are excited to partner with Lunate, which is a leading global private markets solutions provider based out of Abu Dhabi,” Michael Rees, co-president of Blue Owl Capital, said. “They bring valuable investment experience as both an LP and minority GP stake investor. We think the combined effort will be truly differentiated for mid-sized GPs and be complementary to our existing strategy focused on larger managers.”
“Our joint venture with Blue Owl speaks to Lunate’s aim of identifying and investing in a mid-sized GP stakes strategy that will enable our clients to participate in the broader dynamics of private markets investing” Khalifa Al Suwaidi, managing partner of Lunate, said. “Blue Owl are pioneers and leaders in this space, and together, we are well positioned to add strategic value through our multi-asset platform, global networks and industry expertise.”
