Investment firm Blue Owl Capital introduces initial fund dedicated to alternative credit options
Blue Owl Capital, a leading alternative investment management firm, has recently launched the Blue Owl Alternative Credit Fund (OWLCX). The fund, which boasts an initial capital of $850 million, aims to provide individual investors with access to alternative credit assets that have traditionally only been available to institutional investors.
The Blue Owl Alternative Credit Fund is structured as a registered interval fund, offering daily purchases and monthly distributions, with quarterly liquidity via repurchase offers. This structure is designed to provide investors with a steady income stream, while also offering the flexibility to exit the fund on a quarterly basis.
The fund's strategy focuses on asset-based finance in private credit markets. By investing in a diversified pool of amortizing assets, the fund aims to reduce correlation to traditional credit investments. This diversification strategy, combined with the fund's flexible mandate, allows the fund to allocate across credit assets backed by contractual cash flows from financial and hard assets.
Blue Owl's alternative credit strategy has a 20-year track record and has deployed over $24 billion (£17.6 billion) of capital across approximately 950 investments. The fund is managed by Blue Owl Alternative Credit Advisors II LLC, which has a 65-strong investment team, including a dedicated data science effort with decades of counterparty data and tens of millions of data points.
Sean Connor, president and chief executive of global private wealth at Blue Owl, stated that the launch of OWLCX opens the door for individual investors to access a market traditionally dominated by institutions. He believes that the fund offers strong income potential backed by diversified pools of asset collateral.
Ivan Zinn, head of alternative credit at Blue Owl, added that asset-based finance represents the next opportunity for investors in private credit. He believes that the fund's solutions align with the evolving demands of today's private wealth investors, who are seeking institutional-grade solutions with the accessibility and transparency expected in today's market.
The Blue Owl Alternative Credit Fund's assets under management (AUM) have increased to $145 billion, reflecting the growing interest in alternative credit assets. The fund continues Blue Owl's commitment to democratizing alternative assets, making them accessible to a broader range of investors.
In conclusion, the Blue Owl Alternative Credit Fund offers a unique opportunity for individual investors to gain access to the alternative credit market. With its focus on asset-based finance, diversified pools of amortizing assets, and a flexible mandate, the fund aims to provide investors with a steady income stream, reduced correlation to traditional credit investments, and the transparency and accessibility expected in today's market.
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