When will the Blue Owl Capital unit be listed on the LSE?


Alternative management company, Blue Owl Capital Inc. recently announced its intention to list the assets of its Dyal Capital Partners business on the London Stock Exchange. The IPO could take place in the first half of the year despite persistent geopolitical tensions.

Dyal Assets IPO plans

US capital markets firm Blue Owl Capital’s plan is to launch an IPO of its Dyal Capital Partners division in London. Around 10% of Dyal could be sold to investors while Blue Owl will retain the remaining 90%, according to reports.

Several companies have recently scrapped their IPO plans due to sour market sentiment. Apart from the Russian-Ukrainian war, other factors such as rising inflationary pressures and soaring interest rates have also discouraged IPO launches. However, some companies are still going ahead with their Initial Public Offering plans, like Olam, which is also having its food unit listed in the first half of 2022.

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According to reports, Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc. worked with Blue Owl Capital on the listing of Dyal Assets. The Petershill Partners Plc unit of Goldman Sachs Group Inc., which does a similar business to Dyal Assets, went public in September last year at a valuation of around £4bn. However, it has lost about half of its value since the IPO. At listing, Dyal may be more than twice the size of Petershill Partners.

All about Dyal Assets

In May 2021, Dyal Capital Partners, which was a unit of the Neuberger Berman group, was merged with Owl Rock Capital Group to form the alternative asset management company, Blue Owl Capital Inc. (NYSE: OWL). The businesses were combined with the help of a Special Purpose Acquisition Company (SPAC) called Altimar Acquisition Corporation.

Blue Owl currently has approximately $94 billion in assets under management. These assets include fund managers as well as real estate assets and private credit. In a bid to expand its private capital operations, Blue Owl reached a $1.6 billion deal in October to add real estate firm Oak Street Real Estate Capital to its assets.

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Dyal invests in fund managers, and some of the major private asset firms it has invested in include Silver Lake and Vista Equity Partners, which have grown rapidly since Dyal took stakes in them. Dyal’s IPO would thus allow investors to invest in private buyout companies. Stakes in about 18 companies, which include big names like HIG Capital and Dragoneer Investment Group, are believed to be held by Dyal. Credit, software and technology assets may also be included in the new vehicle.

Conclusion

The decision to launch Dyal’s IPO amid the ongoing Russia-Ukraine crisis is a bold move by Blue Owl. The London IPO will potentially take place in the first half of the year itself. The listing date, price, and other details have yet to be revealed by Blue Owl; thus, further details will likely be released soon and can be viewed on the company’s website.

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