Blue Owl is continuing its buying spree, this time for Real Estate Finance.

The $165 billion multi-strategy alt manager (Credit, GP Strategic Capital, Real Estate), announced the acquisition of Prima Capital Advisors for the aggregate consideration of $170 million.

Prima manages $10 billion in AUM for institutional and HNW investors. It was founded in 1992 by Gregory White with a focus on commercial mortgage-backed securities. Prima is majority owned by Stone Point Capital and the acquisition will be funded through $157 million of equity and some $13 million in cash. In addition, there is potential for up to $35 million of earnout in the form of equity. Prima employees are expected to join Blue Owl, which is creating the Blue Owl Real Estate Finance strategy.

Blue Owl is putting Jesse Hom in charge of the new venture, reporting to Marc Zahr (Co-President of Blue Owl and Head of Real Estate). Jess was Global Head of Real Estate at GIC.

Co-CEOs Ostrover and Lipschultz commented Prima is „further diversifying our real estate platform. Today‘s announcements underscore how we think about strategic inorganic growth at the investment level.“

Zahr said „I have had the pleasure of knowing Jesse for years (…) he, along with the outstanding team at Prima who maintain a 30-year track record of success, will further bolster our Real Estate platform.“

Prima CEO Greg White added „I along with Primo CIO Nilesh Patel, CFO Julia Tcherkassove, and the rest of the of the Prima team, are excited to join Blue Owl.“
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