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Blue Owl Capital is beefing up its retail push through a new partnership with wealthtech company Allfunds and fintech business iCapital. The move comes as retail investors' appetite for private credit and other alternative assets grows.
Blue Owl said Wednesday that it has made its software direct lending strategy—which focuses on debt and equity investments in high-growth, private software and technology businesses—available to eligible clients on Allfunds.
These investors can access Blue Owl's credit offering through a feeder fund managed by iCapital with an investment as low as $25,000, according to a person familiar with the matter.
The move represents the latest efforts by the $132.1 billion asset manager to court wealthy individuals. Last year, Blue Owl launched a non-traded business development company, dubbed Owl Rock Technology Income Corp., which offers high-net-worth individuals opportunities to invest in private loans made to technology companies in the US.
In Q3 2022, the firm hauled in $3.6 billion in committed capital through private wealth channels—about three times more than the capital it raised from the same venue during the same quarter in 2021—according to Blue Owl's most recent earnings report.
"The private wealth channel remains a critical driver for Blue Owl's long-term growth strategy providing more investors around the world with access to innovative products that meet their investment needs and is an area where we continue to focus," said Sean Connor, president of global private wealth at Blue Owl, in a statement.
Other asset managers that have tapped into Allfunds include The Carlyle Group, Ardian and Tikehau. Allfunds, based in Madrid, claimed it had more than €1.3 trillion (about $1.4 trillion) in assets under administration as of March 31, 2022.
Financial advisers and their high-net-worth clients are increasingly seeking higher exposure to private market investments such as private credit to gain access to higher-yielding investments when returns from public markets decrease due to rising rates, higher volatility and inflation risks.
Fidelity Investments, for instance, launched Fidelity Private Credit Fund earlier this month in an effort to expand its offering of alternative investments. The fund, which makes loans to private companies, will be accessible to financial advisers and clients who meet certain requirements.
Featured image by William Potter/Shutterstock
This article originally appeared on PitchBook News