Blue Owl Capital is targeting approximately $1.5bn through the sale of a portfolio of minority stakes in private equity firms, as part of a continuation vehicle transaction involving its Dyal Capital Partners IV fund, according to a report by Bloomberg citing people familiar with the matter.
Goldman Sachs is advising on the deal, which would see stakes in HPS Investment Partners, Clearlake Capital Group, and Golub Capital – along with holdings in several other alternative asset managers – moved into a new vehicle backed by a fresh investor base.
The transaction is structured as a securitised GP stakes deal, where the new entity, also managed by Blue Owl, will issue rated debt tranches (A, B, and C) alongside an equity layer. Cashflows from management fee income generated by the underlying firms will service the debt. Pricing discussions for the tranches remain ongoing.
The transaction includes no option for existing Dyal IV LPs to roll over their interests. Investors in the 2019-vintage, $9bn fund include the Minnesota State Board of Investment, STRS Ohio, Alaska Permanent Fund Corp, and South Yorkshire Pensions Authority, per Bloomberg data.
Marketed IRRs for Dyal IV are reported at 34.4% to date.
Alongside HPS, Clearlake, and Golub, the fund also holds GP stakes in Veritas Capital, TowerBrook Capital Partners, Bridgepoint Group, Quantum Energy Partners, CrossHarbor Capital Partners, and RXR Realty – all of which are expected to be transferred to the new structure.
The deal comes amid broader momentum in the GP-stakes secondary market, as managers seek liquidity solutions amid slower fundraising cycles and reduced M&A volume. Structures such as this have become increasingly attractive to insurance capital and long-term yield-focused investors.
Blue Owl and Goldman Sachs declined to comment.
