Key Takeaways
- • Blue Owl Capital plans a "big push" into insurance to secure more long-term capital and broaden its investment platform, according to the Financial Times, per co-chief executive Doug Ostrover.
- • Blue Owl does not plan to acquire an insurer outright. Ostrover described a "balance-sheet-light" strategy, in contrast to Apollo's acquisition of Athene and KKR's purchase of an insurance business.
- • Blue Owl already manages billions of dollars of insurance assets for Kuvare, in which it holds a minority stake, but its insurance platform remains considerably smaller than those of rivals such as Blackstone.
- • Blue Owl has hired insurance industry executive Deva Mishra to help develop the strategy.
Summary
Blue Owl Capital is preparing to significantly expand its presence in the insurance market, as the alternative asset manager seeks more long-term capital and a broader investment platform, according to a report by the Financial Times. Co-chief executive Doug Ostrover said the firm intends to make a "big push" into insurance, arguing that a larger pool of insurance assets would allow Blue Owl to develop new investment solutions for clients.
The approach differs from that of several larger private capital managers. Blue Owl does not currently plan to acquire an insurer outright. Apollo acquired Athene and KKR has also bought an insurance business, but Ostrover said Blue Owl is pursuing a "balance-sheet-light" strategy instead. Insurance balance sheets are a major source of long-duration capital for alternative managers, and the strategy suggests Blue Owl intends to access that capital through partnerships and asset management mandates rather than by owning a carrier.
Blue Owl already manages billions of dollars of insurance assets for Kuvare, in which it holds a minority stake. However, the firm's insurance platform remains considerably smaller than those of larger rivals such as Blackstone. To help build out the effort, Blue Owl has hired insurance industry executive Deva Mishra to develop its strategy. The report did not specify target asset levels, timing, or a fundraising figure for the initiative.
The approach differs from that of several larger private capital managers. Blue Owl does not currently plan to acquire an insurer outright. Apollo acquired Athene and KKR has also bought an insurance business, but Ostrover said Blue Owl is pursuing a "balance-sheet-light" strategy instead. Insurance balance sheets are a major source of long-duration capital for alternative managers, and the strategy suggests Blue Owl intends to access that capital through partnerships and asset management mandates rather than by owning a carrier.
Blue Owl already manages billions of dollars of insurance assets for Kuvare, in which it holds a minority stake. However, the firm's insurance platform remains considerably smaller than those of larger rivals such as Blackstone. To help build out the effort, Blue Owl has hired insurance industry executive Deva Mishra to develop its strategy. The report did not specify target asset levels, timing, or a fundraising figure for the initiative.
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