Private markets firms that do not have insurance parents have been looking to get into third-party insurance assets either through hiring key talent or… via acquisition.

Blue Owl has bought Kuvare Insurance Services (dba Kuvare Asset Management) for $750 million – KAM is a boutique investment firm focused on providing asset management services to the insurance industry, including Kuvare UK Holdings.

Blue Owl is finding the deal with $525 million in cash and $425 million in common stock, and expects the deal to close in Q2/3 2024.

Most employees are expected to join Blue Owl.

Blue Owl also made a long-term investment in Kuvare, buying $250 million in preferred equity. Kuvare is a technology enabled financial services firm that has become a top 20 fixed and indexed annuity writer in the US.

Another investment management agreement allows Blue Owl to deploy up to $3 billion of assets across its existing credit, GP strategic capital and real estate investment platforms.

Co-CEOs Ostrover and Lipschultz commented with excitement on „the creation of Blue Owl Insurance Solutions“ as a „significant moment in Blue Owl‘s journey“.

We expect the insurance channel to be a significant marketplace for private markets firms, both for acquisitions and team liftouts.

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