## KEY TAKEAWAYS
- Blue Owl Capital and Lunate announced a joint venture to provide growth capital to mid-sized private market managers, targeting firms with less than $10 billion in fee-paying assets under management.
- Lunate, an Abu Dhabi-headquartered alternative investment manager managing approximately $105 billion in assets and backed by sovereign wealth fund ADQ, brings LP and minority GP stake investing experience to the partnership.
- The joint venture combines Blue Owl's GP Strategic Capital platform—described as a market leader in GP minority investing—with Lunate's multi-asset class private markets expertise across private equity, venture capital, private credit, and real assets.
- The strategy targets GPs with sector specialization, differentiated approaches, strong leadership, and established platforms with identifiable value drivers, positioning the venture as differentiated from Blue Owl's existing focus on larger-scale managers.
## DETAILED SUMMARY
Blue Owl Capital Inc. and Lunate announced on February 7, 2024, a joint venture structured to deploy growth capital into mid-sized private market investment managers. The partnership targets general partners managing less than $10 billion in fee-paying assets under management, a segment Blue Owl characterizes as complementary to its existing GP Strategic Capital platform, which traditionally focuses on larger-scale managers.
Lunate, headquartered in Abu Dhabi with approximately $105 billion in assets under management, brings institutional-grade experience as both an LP investor and minority GP stake investor across multiple alternative asset classes. The firm's portfolio spans private equity, venture capital, private credit, real assets, and public equities and credit. Lunate is backed by ADQ, Abu Dhabi's sovereign wealth fund, providing access to patient capital aligned with long-term alternative asset strategies.
According to Michael Rees of Blue Owl, the partnership creates "a powerful and differentiated proposition" for mid-market GPs seeking growth capital and strategic partnerships. The joint venture will focus on acquiring minority equity stakes in GPs demonstrating clear sector specialization, differentiated competitive approaches, strong governance and culture, and durable platform foundations with identifiable drivers of franchise value. This targeted investment thesis distinguishes the venture from Blue Owl's broader GP strategic capital activities and positions it to serve an underserved segment of the alternative asset management industry seeking structured growth financing without majority ownership transitions.
