Blue Owl Capital to acquire Kuvare Asset Management for $750 million

Blue Owl Capital has outlined plans to acquire Kuvare Asset Management (KAM) in a $750 million deal.

KAM specialises in managing assets for insurers, including Kuvare UK Holdings, which offers life insurance, annuities, and reinsurance products. 

Blue Owl aims to expand its assets under management by up to $20 billion through this acquisition, reby enhancing its current portfolio.

partnership between life insurers and investment firms has gained momentum in recent months, with such alliances seen as a means to potentially improve margins for insurers.

Nathan Viehl, a partner at Thompson Coburn, suggests that premiums collected by life insurers serve as a stable source of long-term capital for investment firms.

However, analysts caution that insurance industry's tritionally risk-averse nature could pose challenges if not carefully managed. 

re are concerns that relaxing regulations on insurers, coupled with underestimating risk exposure, could le to unforeseen consequences.

In response to announcement, Blue Owl's shares surged by 6 per cent. financing of acquisition will involve $325 million in cash and $425 million in Blue Owl shares. 

ditionally, deal's value could see a furr increase of $250 million contingent on specific revenue targets being met. Blue Owl also plans to acquire $250 million worth of preferred shares in Kuvare UK.

acquisition is expected to be finalised in second or third quarter of 2024. 

Leing financial visers for Blue Owl included Ardea Partners and PJT Partners, while Kuvare UK received vice from Royal Bank of Cana. JP Morgan Securities served as le financial viser to KAM.

(With Reuters Inputs)