Alternative asset manager Blue Owl Capital Inc. plans to acquire digital infrastructure fund manager IPI Partners LLC for approximately US$1 billion, the New York-based firm announced Monday.
Blue Owl was one of the first U.S.-based private credit managers to offer direct lending capabilities to onshore Canadian investors, a move made in 2022.
IPI, based in Chicago, was founded in 2016 as a joint venture between ICONIQ Capital and Iron Point Partners LLC, both based in the U.S. IPI invests in data centres and other digital infrastructure, having a portfolio of 82 data centres, a release said.
The purchase price for IPI is comprised of roughly 80% Blue Owl equity and 20% cash. The deal comes amid growing demand for data centres that power generative artificial intelligence (AI) and will bolster Blue Owl’s digital infrastructure strategy as part of its real estate platform.
Blue Owl co-CEOs Doug Ostrover and Marc Lipschultz said the deal represents “a massive market opportunity to finance data centres, matched by increasing investor appetite for additional strategies investing behind cloud and AI-driven secular tailwinds.” They value “IPI’s tenured investment team,” plus its “global scale in the digital infrastructure economy,” the pair added.
IPI had approximately US$10.5 billion in assets under management (AUM) as of June 30, the firm said.
Matt A’Hearn, currently IPI’s managing partner and the chair of its investment committee, will become head of Blue Owl’s digital infrastructure strategy when the deal is completed, reporting to Blue Owl co-president Marc Zahr.
IPI’s employees are also expected to join Blue Owl, continuing to manage IPI’s existing funds. The release said there are more than 70 team members in global offices and more than 50 investment professionals.
Blue Owl’s acquisition of IPI is expected to close no later than the first quarter of 2025, subject to conditions.
Also this month, Blue Owl completed its acquisition of alternative credit manager Atalaya Capital Management LP, a firm with more than US$10 billion in AUM.
As of June 30, Blue Owl had US$192 billion in AUM.