US-based various asset supervisor Blue Owl Capital has agreed to accumulate compatriot Kuvare Insurance coverage Providers, doing enterprise as Kuvare Asset Administration (KAM), in a cash-stock transaction valued at $750m.
Blue Owl can pay $325m in money and $425m in inventory to finance the deal. Moreover, KAM might obtain as much as a $250m earnout, contingent on assembly sure future income targets and changes.
As a result of be finalised within the second or third quarter of 2024, the acquisition awaits regulatory approvals. It’s also depending on different commonplace closing circumstances, together with specified termination rights.
The deal will add as much as $20bn of property beneath administration to Blue Owl’s books and allow the launch of Blue Owl Insurance coverage Options.
Blue Owl appears to retain nearly all of KAM’s employees post-acquisition.
In a separate transfer, Blue Owl invested $250m of most popular fairness in Kuvare UK Holdings. This transfer aligns each corporations for the long run and supplies Kuvare’s insurance coverage companies with progress capital, making them new asset administration shoppers for Blue Owl.
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Kuvare, established in 2015, operates numerous insurance coverage and reinsurance companies, with its enterprise segments overlaying retail, institutional reinsurance and specialty insurance coverage advisory companies.
Moreover, Blue Owl and Kuvare entered funding administration agreements (IMAs), permitting Blue Owl to handle as much as $3bn throughout its Credit score, GP Strategic Capital and Actual Property funding platforms.
Kuvare will preserve management over the asset allocations for its insurance coverage companies and strategic investments, whereas the IMAs will bolster Blue Owl’s everlasting capital base and improve Kuvare’s funding capabilities.
Blue Owl expects these transactions to be accretive this yr.
Blue Owl co-CEO Doug Ostrover stated: “The creation of Blue Owl Insurance coverage Options represents a major second in Blue Owl’s journey. Our acquisition of KAM permits us to supply broader options to the multi-trillion-dollar insurance coverage market at scale.
“KAM’s capabilities in investment-grade credit score and actual property methods complement Blue Owl’s present energy in these asset courses and additional speed up our capacity to convey differentiated merchandise and techniques to the marketplace for Kuvare and third-party insurance coverage shoppers.”
