Owl Rock Capital Group, an alternative asset management firm, has sold a passive, non-voting minority stake to Dyal Capital Partners, a division of Neuberger Berman. Terms of the investment were not disclosed.
An Owl Rock affiliate manages one publicly traded business development company, Owl Rock Capital Corporation I (NYSE: ORCC). The firm also sponsors three non-traded investment funds: Owl Rock Capital Corporation II (BDC), Owl Rock Technology Finance (BDC), and its First Lien Fund (private placement).
Dyal’s investment provides Owl Rock with additional permanent capital to continue providing direct lending to U.S. middle market companies. Owl Rock plans to use all proceeds to invest in its products, which are expected to include additional product launches in 2020.
The company noted that there will be no changes in the management, strategy, investment process, or day-to-day operations of Owl Rock or any Owl Rock managed product, including Owl Rock Capital Corporation.
“This is an exciting development in the evolution of Owl Rock,” said Doug Ostrover, Marc Lipschultz and Craig Packer, Owl Rock’s co-founders. “Dyal has an outstanding track record of investing in established asset managers like Owl Rock and will be a terrific strategic partner as we execute on our long-term initiatives. We look forward to putting this capital to work to continue growing our platform and delivering attractive risk-adjusted returns to investors.”
Owl Rock’s BDC platform has approximately $14.6 billion in assets under management across its vehicles.
Dyal Capital Partners acquires minority equity interests in institutional alternative asset management businesses worldwide and currently has 41 minority partnerships.
Neuberger Berman, founded in 1939, manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. The firm manages $339 billion in client assets as of September 30, 2019.