BLUE OWL CAPITAL INC. Investors could be more receptive to taking these minority stakes in private equity firms amid a precarious fundraising environment.
On Wednesday, the firm announced the final close of Dyal Capital Partners V with
The new fund is one product under Blue Owl's GP Capital Solutions umbrella. These funds take minority equity positions, also known as GP stakes, in alternative asset management companies.
Over its lifetime, Dyal Capital Partners V will invest in about 20 private equity firms across various asset classes, strategies and geographies. So far, the fund holds minority stakes in 17 firms, including Luxembourg-based
PE firms typically take GP stakes in other asset managers as a way to fund new initiatives, expand to other markets and grow capital commitments to new funds, particularly during difficult fundraising periods. The strategy has also been an effective way for GPs to generate higher returns.
In the second half of 2022, GPs struggled with an adverse fundraising sentiment, driven largely by the denominator effect and the subsequent pullback in commitments to the PE asset class, according to PitchBook's Q3 2022 Global Private Market Fundraising Report. PE fundraising totaled
'GPs were struggling to fundraise last year (especially if they weren't name-brand shops) and were probably feeling the pinch and maybe looking to shore up their balance sheet in case of hard times, which would make them more receptive to a staking position,' said
Blue Owl said its new fund's LP base includes sovereign wealth investors, public and corporate pensions plans, endowments, foundations and family offices in the
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