Market updates and sector developments

Blue Owl Capital has launched a real estate finance strategy with the acquisition of Prima Capital Advisors for the aggregate consideration of US$170m. Jesse Hom, previously global head of real estate credit at GIC, will join Blue Owl to lead the newly created strategy as cio, reporting directly to Marc Zahr, co-president of Blue Owl and head of real estate. 

Additionally, Hom will work to grow the existing triple-net lease business and identify strategic opportunities to build out and scale the real estate platform.

Founded in 1992 by ceo Gregory White, Prima is a real estate lender focused primarily on investing in CMBS, which is majority owned by Stone Point Capital. Prima manages approximately US$10bn in assets on behalf of institutional investors and select high net-worth individuals.

Blue Owl's acquisition of Prima will be funded through a combination of approximately US$157m of equity and approximately US$13m in cash, subject to certain closing consideration adjustments. In addition, there is potential for up to US$35m of earnout consideration in the form of equity. Upon closing of the acquisition, Prima employees are expected to join Blue Owl, including White, cio Nilesh Patel and cfo Julia Tcherkassova.

The acquisition is expected to close in the second or third quarter of 2024, subject to customary closing conditions.

In other news…

New Obra subsidiary launches two debut ETFs
Obra Capital’s newly launched Obra Fund Management has launched its inaugural ETFs focusing on securitised products, led by senior md and head of structured credit Peter Polanskyj and md Matt Roesler.

Obra says the ETFs, named Obra Opportunistic Structured Products (OOSP) and Obra High Grade Structured Products (OGSP), will pursue a dynamic approach, “shifting allocation based on market conditions” and returning a quarterly dividend to investors.

Both vehicles will have broad remits and active approaches, making short- and long-term investments in ABS, RMBS, CMBS, CDOs, CLOs and CMOs. OGSP will focus primarily on high-grade and investment grade securitisation products.

Polanskyj joined Obra in early 2022, leaving his role as md at Sculptor Capital Management, previously known as Och-Ziff Capital Management, after 14 years with the business. He previously spent six years with Morgan Stanley.

Roesler joined the firm a few months later. Prior to joining Obra, he spent six and a half years working on structured credit at Apollo Global Management, leaving his position as partner in January 2021. Roesler previously worked at Citi and Deutsche Bank.

Obra, which rebranded from Vida Capital at the end of 2022, has four strategies including longevity investing, insurance special situations, structured credit and asset-based finance. The business was acquired by RedBird Capital Partners and Reverence Capital Partners in 2019, with the latter divesting its minority shareholding position in October last year to Aquarian Holdings.

Corinne Smith, Kenny Wastell