NEW YORK - Eldridge Industries has acquired a 10% interest in Blue Owl GP Stakes Fund III, a move that introduces a new liquidity solution in the general partner (GP) stakes market. The transaction details between the two firms remain undisclosed.
Blue Owl GP Stakes Fund III is a passive minority investment vehicle that owns shares in leading private equity firms, offering capital to support their growth and strategic objectives. The current deal with Eldridge Industries marks a significant development in providing liquidity options for investors within permanent capital structures.
Todd Boehly, Chairman and CEO of Eldridge Industries, expressed enthusiasm over the partnership with Blue Owl, recognizing it as an innovative step towards offering liquidity solutions for GP stakes. He highlighted the role of David Lee, who leads the GP solutions strategy at Eldridge, and anticipates further collaboration with Blue Owl and their GP partners.
Michael Rees, Co-President of Blue Owl and Head of GP Strategic Capital Platform, also commented on the synergy between the two companies, citing Eldridge Industries' innovative spirit as a key factor in the partnership. He looks forward to future joint endeavors.
Eldridge Industries, headquartered in Greenwich, Connecticut, operates across various sectors, including Insurance, Asset Management, Technology, Mobility, Sports & Gaming, Media, Real Estate, and Consumer industries. The firm focuses on businesses with strong management teams capable of scaling enterprises.
Blue Owl, listed on the NYSE under the ticker NYSE:OWL, manages over $192 billion in assets as of June 30, 2024. The company invests in Credit, GP Strategic Capital, and Real Estate through a strong permanent capital base, offering private capital solutions for businesses and alternative investment opportunities for institutional and individual investors, as well as insurance companies.
This acquisition is based on a press release statement and introduces Eldridge Industries as a key player in the field of GP solutions.
In other recent news, Blue Owl Capital has made several strategic moves. The company's earnings report for the second quarter showed fee-related earnings of $0.21 per share, distributable earnings of $0.19 per share, and a declared dividend of $0.18 per share. Blue Owl Capital has also announced the acquisition of IPI Partners for approximately $1 billion, a move that is set to add $10.5 billion in digital infrastructure assets under management and increase Blue Owl's global presence, particularly in Europe.
Evercore ISI has increased the price target for Blue Owl Capital to $22.00, maintaining its Outperform rating, while Goldman Sachs (NYSE:GS) reaffirmed a Buy rating with a target of $21.75. These adjustments reflect the company's strategic growth, including the acquisition of Atalaya Capital Management, Prima, and Kuvare Asset Management, which have significantly boosted its assets under management to over $220 billion.
In addition to these acquisitions, Blue Owl Capital has made key amendments to a financial agreement to comply with the Trust Indenture Act of 1939, reflecting active management of its financial commitments. The company has also expanded its team with the appointment of John Valtwies as the head of its Australian private wealth business, indicating a commitment to global expansion. These are all recent developments that highlight Blue Owl Capital's strategic growth and diversification initiatives.
InvestingPro Insights
Blue Owl Capital Inc. (NYSE:OWL) has been demonstrating strong financial performance, which aligns with the company's recent strategic move involving Eldridge Industries. According to InvestingPro data, Blue Owl's revenue grew by 31.88% in the most recent quarter, indicating robust business expansion. This growth trajectory supports the company's ability to engage in significant transactions like the one with Eldridge Industries.
InvestingPro Tips reveal that Blue Owl has raised its dividend for 3 consecutive years, showcasing a commitment to shareholder returns. This consistent dividend growth, coupled with a current dividend yield of 3.31%, may attract investors looking for both growth and income potential in the alternative asset management sector.
The company's market performance has been particularly impressive, with a 68.26% price total return over the past year. This strong performance suggests that investors have been responding positively to Blue Owl's strategic initiatives and growth prospects.
It's worth noting that Blue Owl is trading near its 52-week high, with its price at 98.32% of the 52-week high value. This could indicate market confidence in the company's recent moves, including the partnership with Eldridge Industries.
For investors seeking more comprehensive insights, InvestingPro offers 14 additional tips for Blue Owl Capital Inc., providing a deeper analysis of the company's financial health and market position.
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