After pitching a unique investor incentive, Blue Owl has gathered more than $1 billion in commitments. Blue Owl was seeking a minimum of $750 million in endowment and pension commitments for its Strategic Equity fund, which invests in continuation funds to buy assets from vehicles to pay early investors and extend the holding period, according to Bloomberg.
Blue Owl’s new 40 Act fund, named after the Investment Company Act of 1940, offers early backers equity stakes in the institutional fund. It will be sold to retail clients and will invest alongside the Strategic Equity Fund. Institutional investors will receive a portion of the fees from the retail funds.
This style of investment provides cash and easy-to-sell assets, to offer regular liquidity to investors. By allowing investors to play a role in both funds, they can easily access returns throughout the fund’s cycles.
