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Blue Owl open to bank partnership, says Co-CEO

Private credit firm Blue Owl Capital is open to partnering rather than competing with banks to house loans as the pace of such tie-ups in the direct lending space looks set to accelerate, according to a report by Bloomberg.

The report quotes Co-CEO Marc Lipschultz as saying in a Bloomberg Television interview on Monday that he is “happy to partner with banks” as “they have a certain set of corporate relationships that are very powerful”.

Lipschultz’s admission comes as large investment banks including JPMorgan Chase & Co and Goldman Sachs Group have been rapidly moving to expand their own direct lending arms.

Banks and private credit lenders have been increasingly competing against each other, especially for the rights to finance large deals, but Lipschultz can see the benefits of working together, adding that banks “do a lot for those companies that we don’t do, they do things like foreign exchange, and do things like cash management. We on the other hand are a very much natural and much steadier home for the liability, so to speak, for the loan. We buy and hold loans, we have long term capital for long term needs.”

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