Bulletin: Blue Owl Capital Inc.'s $205 Million Acquisition Of Prima Will Expand Real Estate Finance Capabilities

NEW YORK (S&P Global Ratings) April 9, 2024--S&P Global Ratings today said Blue Owl Capital Inc.'s proposed $205 million ($170 million upfront and $35 million earnout) acquisition of New York-based Prima Capital Advisors (not rated) will add real estate finance to Blue Owl's equity-focused real estate platform. Prima currently manages approximately $10 billion in assets under management (AUM) on behalf of institutional investors and high net worth individuals. Our rating is not affected by the announcement. Blue Owl intends to fund $170 million of the acquisition upfront, 92% of which will be funded with stock and the remainder with cash on hand. The Prima transaction also includes a $35 million earnout comprised of 100% stock to be paid out subject

...April 9, 2024 NEW YORK (S&P Global Ratings) April 9, 2024--S&P Global Ratings today said Blue Owl Capital Inc.'s proposed $205 million ($170 million upfront and $35 million earnout) acquisition of New York-based Prima Capital Advisors (not rated) will add real estate finance to Blue Owl's equity-focused real estate platform. Prima currently manages approximately $10 billion in assets under management (AUM) on behalf of institutional investors and high net worth individuals. Our rating is not affected by the announcement. Blue Owl intends to fund $170 million of the acquisition upfront, 92% of which will be funded with stock and the remainder with cash on hand. The Prima transaction also includes a $35 million earnout comprised of 100% stock to be paid out subject to Prima achieving certain performance thresholds. While the transaction will modestly increase Blue Owl's leverage (net debt to adjusted EBITDA), we think it also supports the company's continued growth in fee-paying AUM and expands...

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