Blue Owl to acquire Oak Street Real Estate Capital

Blue Owl Capital has entered into a definitive merger agreement to acquire Oak Street Real Estate Capital and its investment advisory business. The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions.

The closing purchase price of $950 million will be funded through a combination of cash and Blue Owl common units (up to an aggregate of approximately 39 million Blue Owl common units issuable at closing). In addition, upon the achievement of certain performance thresholds, Oak Street equity holders will be entitled to earnouts up to a total of approximately $650 million, payable in cash at future dates or in Blue Owl common units (up to an aggregate of approximately 39 million Blue Owl common units subject to vesting). The transaction is anticipated to be approximately 5 percent to 7 percent accretive to distributable earnings per share starting in 2022.

Oak Street is a Chicago-based firm, founded in 2009 with mor