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Blue Owl buys Kuvare Asset Administration to broaden insurance coverage options

Various asset supervisor Blue Owl Capital is increasing its options for the “multi-trillion-dollar insurance coverage market” by buying Kuvare Asset Administration (KAM) for $750m (£596m).

KAM gives asset administration companies to the insurance coverage business.

Blue Owl has individually bought $250m of most popular fairness in KAM’s UK arm, Kuvare UK, offering progress capital to Kuvare UK’s insurance coverage firms, every of which is able to grow to be new asset administration shoppers of Blue Owl.

As well as, Blue Owl and Kuvare UK have entered into funding administration agreements that allow Blue Owl to deploy as much as $3bn of belongings throughout its current credit score, GP strategic capital and actual property funding platforms.

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Blue Owl mentioned that the acquisition will add as much as $20bn of belongings below administration after the deal closes, and help the launch of Blue Owl Insurance coverage Options.

Kuvare UK will proceed to handle the general asset allocations for its insurance coverage companies and strategic investments.

“Our acquisition of KAM permits us to supply broader options to the multi-trillion-dollar insurance coverage market at scale,” mentioned Doug Ostrover, co-chief government of Blue Owl.

“KAM’s capabilities in funding grade credit score and actual property methods complement Blue Owl’s current power in these asset lessons and additional speed up our means to deliver differentiated merchandise and techniques to the marketplace for Kuvare and third-party insurance coverage shoppers.”

Blue Owl co-chief government Marc Lipschultz added: “This partnership with Kuvare anchors Blue Owl’s increasing presence within the insurance coverage channel, drastically complementing our strong institutional and wealth footprint and additional diversifying the markets for which we offer funding options. In mixture, we imagine these transactions replicate a inventive method to increasing our choices for the insurance coverage market at a sexy worth.”

Blue Owl will fund the KAM acquisition by means of a mix of $325m in money and $425m in Blue Owl Class A typical inventory. The acquisition is anticipated to shut within the second or third quarter of this 12 months, topic to regulatory approvals.

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“It is a crucial and thrilling step within the evolution of Kuvare to affiliate in such an impactful manner with an asset supervisor of Blue Owl’s caliber,” mentioned Kuvare founder and chairman Dhiren Jhaveri. “We at all times attempt to be wonderful stewards of belongings entrusted to us by our policyholders and reinsurance companions, and the crew at Blue Owl has demonstrated a singular dedication to serving to us obtain our targets.”

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