Investment firm Blue Owl secures $850 million from the affluent sector for an alternative credit fund
Blue Owl's Alternative Credit Fund Aims to Offer Stability and Diversification
Blue Owl Capital, a leading asset manager with over $273bn in assets under management, has announced the final close of its alternative credit fund aimed at the wealth market. The fund secured $850m (£632.5m) in capital commitments, marking a significant milestone for Blue Owl's private wealth platform [1][2][3][4].
The strategy of Blue Owl's alternative credit fund focuses on alternative credit through asset-based finance. This approach targets financing solutions anchored to tangible collateral such as financial or hard assets, offering a differentiated approach to corporate credit compared to traditional lending. The primary objective is to provide current income, with some capital appreciation potential. The emphasis on collateral or reliable cash flow streams is intended to generate a consistent income profile that is less correlated with traditional corporate direct lending and broader public markets [1][2].
For private wealth investors, Blue Owl's alternative credit fund has the potential to complement portfolios by offering stability, income, and diversification in a single strategy, reducing correlation to other market risks. The fund attracted investments from a diverse client base across Blue Owl’s global private wealth channel.
Blue Owl's head of alternative credit, Ivan Zinn, stated that asset-based financing presents a differentiated approach to corporate credit by anchoring investments to tangible collateral or a stream of cash flow [1]. The return profile of Blue Owl's alternative credit fund may generate consistent income, making it an attractive option for wealth investors seeking income-generating and diversified credit exposure.
The growth in Blue Owl's private wealth business has been observed across multiple regions, including the Americas, EMEA, and APAC, driven by deepening relationships with advisors and expanding access to credit strategies [1][2]. In addition, Blue Owl Capital is set to launch a debut interval fund, further expanding its offerings in the private wealth market.
In summary, Blue Owl’s alternative credit fund strategy offers a unique approach to private credit investing, leveraging collateral-based financing to provide differentiated risk and return features for wealth investors. The fund's focus on asset-based finance, current income, and lower correlation to traditional credit and public markets makes it an appealing option for private wealth investors seeking stable, income-generating, and diversified credit exposure.
References: [1] Blue Owl Capital. (2022). Blue Owl Capital Announces Final Close of Alternative Credit Fund Aimed at the Wealth Market. Business Wire. [2] Pensions & Investments. (2022). Blue Owl's Alternative Credit Fund Targets Wealth Market. Pensions & Investments. [3] Funds Europe. (2022). Blue Owl Capital closes $850m alternative credit fund for wealth market. Funds Europe. [4] Citywire. (2022). Blue Owl Capital raises $850m for alternative credit fund targeting wealth market. Citywire.
- Blue Owl's alternative credit fund, focused on wealth management, utilizes alternative credit through asset-based finance, offering investors a strategy that aims to provide current income with capital appreciation potential, while maintaining a consistent income profile that is less correlated with traditional corporate direct lending and broader public markets.
- For personal-finance investors interested in diversifying their portfolios, Blue Owl's alternative credit fund can serve as an attractive option, offering income-generating and diversified credit exposure, contributing to stability and income within their overall investment strategy.
