Eldridge Industries LLC has acquired a 10% interest in Blue Owl Capital’s Blue Owl GP Stakes Fund III. These shares will provide liquidity and increase the value of the fund. The companies did not disclose financial terms of the deal.
Blue Owl GP Stakes Fund III is described by Eldridge as a passive minority investment vehicle that owns shares in “industry-leading” private equity firms. According to the announcement, the fund aims to provide capital to help companies achieve their growth target plans and other strategic goals. Mr. Eldridge joins more than 30 other investors on Oulu’s GP Stakes platform, including Vista Equity Partners, Starwood Capital Group, Silver Lake, and Sixth Street Partners.
According to Blue Owl Capital, a GP staking investment is a transaction in which a minority shareholder, such as itself, acquires a minority stake (approximately 10% to 30%) in an alternative asset management company that is the general partner of the partnership. In return for its investment, Blue Owl receives a pro rata share of the company’s revenues, including management fee income, balance sheet profits and carried interest. Eldridge said the company typically takes minority stakes from large private credit management companies.
Eldridge also said the strategy will allow GP Stakes investors to participate in the returns of the business alongside the founders and management company owners. By diversifying its portfolio across a variety of private capital managers, GPS is able to create a portfolio of hundreds of underlying funds consisting of thousands of portfolio companies, along with multiple strategies and geographic regions.
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Blue Owl Capital’s GP Minority Stakes division had $55.5 billion in assets under management at the end of June, according to its second quarter report.
Blue Owl Capital did not immediately respond to a request for comment on the acquisition. Mr. Eldridge had no comment.
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Tags: Blue Owl Capital, Blue Owl GP Stakes Fund III, Eldridge Industries, general partnership, GP, minority interest, Silver Lake, Sixth Street Partners, Starwood Capital Group, Vista Equity Partners
