Acquisition of life sciences investment manager’s funds will add ~$1 billion in assets under management and bolster Blue Owl’s presence in the sector.
NEW YORK, New York, October 30, 2023 -- Blue Owl Capital Inc. (NYSE: OWL) (“Blue Owl”) today announced an agreement to acquire funds managed by Cowen Healthcare Investments (“CHI”), a life sciences investment manager, from CIM. The transaction is subject to customary closing conditions and expected to close in the fourth quarter of 2023.
The acquisition will add approximately $1 billion in assets across several funds and further strengthen Blue Owl’s market presence in the life sciences sector with an emphasis on mid-to-late-stage equity investments into biopharmaceutical and healthcare companies. As part of the transaction, the CHI team will become full-time Blue Owl employees, including senior leaders Kevin Raidy, Tim Anderson and Rob Sine. Upon completion of the transaction, CHI’s funds will be rebranded to Blue Owl Healthcare Opportunities.
“The rapid level of innovation within science and technology is driving a deep need for private capital solutions to support the life sciences sector’s exponential growth,” said Marc Lipschultz, Co-CEO of Blue Owl Capital. “Adding CHI to Blue Owl expands our ability to better meet the needs of our investors and users of our capital who are focused on the life sciences sector.”
“CHI is a well-respected team within Life Sciences whom I’ve had the privilege of getting to know over the years,” said Sandip Agarwala, Managing Director at Blue Owl Capital. “We believe the addition of this team to our platform is highly complementary to our current investment strategy in terms of domain expertise, network, and breadth of life science capabilities.”
Blue Owl’s Life Science efforts are focused on credit, royalty and growth equity investments in innovative biopharmaceutical, medical technology, and healthcare companies and products. Recent transactions include the acquisition of a royalty interest in Novartis’ PLUVICTO (Lutetium 177Lu vipivotide tetraxetan) for the treatment of metastatic castration resistant prostate cancer, and an economic interest in Horizon Therapeutics’ TEPEZZA (teprotumumab-trbw) for the treatment of Thyroid Eye Disease.
As part of Blue Owl, CHI will continue to invest primarily in mid-development stage biotherapeutics. Adding CHI’s team and capabilities allow Blue Owl to further develop a multi-strategy Life Sciences offering, investing across growth stages and capital structure with shared resources and relationships.
SMBC served as financial advisor to Blue Owl Capital.
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