Alternative asset manager Blue Owl Capital has closed the acquisition of Kuvare Insurance Services, which specialises in asset management for the insurance industry.
Kuvare Insurance Services, which trades as KAM, was established in 2015. It operates various insurance and reinsurance businesses, managing around $20bn of assets as of 31 May 2024.
Blue Owl Capital paid around $750m for the acquisition, announced in April 2024.
It was funded through a mix of $325m in cash and $425m in Blue Owl Class A common stock.
The deal consideration can be hiked by $250m if some revenue goals are satisfied.
The completion of the deal comes after the companies secured the necessary regulatory approvals and fulfilled required closing conditions, including specified termination rights.
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By GlobalData
Blue Owl Capital’s move to acquire KAM is set to enhance its capacity to cater to the insurance market at scale.
The deal marks a significant expansion of Blue Owl’s existing services and the launch of a new division, Blue Owl Insurance Solutions.
Blue Owl Insurance Solutions aims to integrate the company’s alternative investment approach with expanded capabilities, addressing a broader spectrum of insurance client needs.
This development is expected to facilitate Blue Owl’s growth by fostering deeper relationships with insurance companies and tapping into a diversified capital source.
The majority of KAM’s employees will move to Blue Owl as part of the deal.
Additionally, at the time of the deal signing in April, Blue Owl invested $250m in preferred equity in Kuvare, establishing a long-term partnership and providing Kuvare’s insurance companies with growth capital.
These companies will now become asset management clients of Blue Owl.
Blue Owl and Kuvare also signed investment management agreements (IMAs), which enable Blue Owl to manage up to $3bn of assets across its current Credit, Real Estate investment and GP Strategic Capital platforms, with the potential for this to increase over time.
Kuvare will retain control over the asset allocations for its insurance businesses and strategic investments.
The IMAs with Kuvare’s insurance entities are expected to augment Blue Owl’s permanent capital base and bolster Kuvare’s investment capabilities.
