Despite ongoing discussions about the convergence of public and private markets, Blue Owl Capital’s co-CEO Marc Lipschultz insists on maintaining that there is a clear distinction between the two, according to a report by Bloomberg.
While some executives advocate for more liquidity within the $1.7tn private market space, Lipschultz highlighted that Blue Owl is not focusing on developing products aimed at facilitating easier entry and exit for investors.
In a Bloomberg TV interview, Lipschultz said: “Private markets are private for a reason,” pointing out that Blue Owl does not see liquidity in private assets as a primary objective. “I don’t know what problem we’re trying to solve in creating a bunch of trading in a non-traded underlying asset,” he added. The firm’s mission remains centred on long-term partnership and value creation rather than the development of secondary trading platforms.
This perspective contrasts with recent comments from executives like Apollo Global Management’s Marc Rowan, who advocate for a more fluid connection between the two markets, often through mechanisms like secondary trading for private equity interests. Additionally, private lenders are exploring ways to expand private debt offerings to investment-grade companies, historically served by banks.
For Blue Owl, a leader in direct lending with $235bn in assets under management as of 30 September, the commitment to the private market model is core to its value proposition. “Our whole value proposition to the user is, ‘You are going to pay us a premium, you are going to sign up for a much more restrictive loan document, we will do our deep diligence, but we are giving you a long-term partnership,’” said Lipschultz, reaffirming private credit as a differentiated product.
Blue Owl’s substantial asset growth — up 50% year-over-year — reflects its “buy-or-build” strategy, which has led the firm to expand aggressively in direct lending and adjacent areas. Over the past six months, Blue Owl has invested $1bn to reinforce its market position, including the $450m acquisition of Atalaya Capital Management to strengthen its asset-based lending portfolio.
Co-CEO Doug Ostrover views this sector as the “next big boom,” positioning Blue Owl to capture increased demand for alternative lending solutions.
Furthering this strategy, Blue Owl recently agreed to acquire IPI Partners for approximately $1bn, marking its entry into data centre investments and digital infrastructure. This acquisition, set to expand the firm’s exposure to tech-centric assets, underscores Blue Owl’s focus on high-growth sectors within private markets.
