NEW YORK - Blue Owl Capital Inc. (NYSE: OWL), an alternative asset manager, has announced the acquisition of Prima Capital Advisors for an aggregate consideration of $170 million. Prima, a real estate lender with approximately $10 billion in assets under management, will enhance Blue Owl's capital solutions suite by adding real estate lending capabilities. The deal, expected to close in the second or third quarter of 2024, is subject to customary closing conditions.
Prima, established in 1992, specializes in commercial mortgage-backed securities and is currently majority-owned by Stone Point Capital LLC. The acquisition will be financed through a combination of equity and cash from Blue Owl, with potential additional equity earnouts. Prima's team, including its CEO Gregory White, is set to join Blue Owl upon the transaction's completion.
Concurrently, Jesse Hom, formerly with GIC as Global Head of Real Estate Credit, is poised to lead Blue Owl's new Real Estate Finance strategy as Chief Investment Officer for the Real Estate platform. Hom's role will involve expanding the triple net lease business and identifying opportunities to scale the platform.
Blue Owl's Co-CEOs Doug Ostrover and Marc Lipschultz highlighted the acquisition's strategic fit, citing the current real estate capital constraints and Prima's strong underwriting track record. They believe that the integration into Blue Owl's ecosystem will address market needs and offer attractive investment opportunities.
Marc Zahr, Co-President of Blue Owl and Head of Real Estate, expressed confidence in Hom's ability to enrich the Real Estate platform's offerings, given his industry reputation and experience. Gregory White of Prima commended Blue Owl's management and collaborative culture as key factors in the decision to join forces.
Financial advisory services for the transaction are being provided to Blue Owl by Berkshire Global Advisors L.P., J.P. Morgan Securities LLC, and several co-advisors, with Kirkland & Ellis LLP serving as legal advisor. Prima's financial advice is from Morgan Stanley & Co. LLC, while its legal counsel includes Kramer Levin Naftalis & Frankel LLP and Pillsbury Winthrop Shaw Pittman LLP.
This acquisition is based on a press release statement.
InvestingPro Insights
As Blue Owl Capital Inc. (NYSE: OWL) gears up for its strategic acquisition of Prima Capital Advisors, the company's financial standing and market performance provide valuable context for investors. According to recent data from InvestingPro, Blue Owl boasts a robust market capitalization of $21.79 billion. The company's revenue growth has been impressive, with a 26.42% increase in the last twelve months as of Q1 2023, indicative of its expanding operations and market presence.
InvestingPro Tips also shed light on Blue Owl's financial health and investor appeal. Notably, the company has consistently raised its dividend for the past three years, reflecting a commitment to shareholder returns. Additionally, analysts are optimistic about the company's profitability, expecting net income to grow this year. This is particularly relevant as Blue Owl undertakes the acquisition of Prima, suggesting a positive outlook for the company's earnings potential post-transaction.
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