US-based alternative asset manager Blue Owl Capital has agreed to acquire compatriot Kuvare Insurance Services, doing business as Kuvare Asset Management (KAM), in a cash-stock transaction valued at $750m.

Blue Owl will pay $325m in cash and $425m in stock to finance the deal. Additionally, KAM could receive up to a $250m earnout, contingent on meeting certain future revenue goals and adjustments.

Due to be finalised in the second or third quarter of 2024, the acquisition awaits regulatory approvals. It is also dependent on other standard closing conditions, including specified termination rights.

The deal will add up to $20bn of assets under management to Blue Owl’s books and enable the launch of Blue Owl Insurance Solutions.

Blue Owl looks to retain the majority of KAM’s staff post-acquisition.

In a separate move, Blue Owl invested $250m of preferred equity in Kuvare UK Holdings. This move aligns both companies for the long term and provides Kuvare’s insurance businesses with growth capital, making them new asset management clients for Blue Owl.

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Kuvare, established in 2015, operates various insurance and reinsurance businesses, with its business segments covering retail, institutional reinsurance and specialty insurance advisory services.

Furthermore, Blue Owl and Kuvare entered investment management agreements (IMAs), allowing Blue Owl to manage up to $3bn across its Credit, GP Strategic Capital and Real Estate investment platforms.

Kuvare will maintain control over the asset allocations for its insurance businesses and strategic investments, while the IMAs will bolster Blue Owl’s permanent capital base and enhance Kuvare’s investment capabilities.

Blue Owl expects these transactions to be accretive this year.

Blue Owl co-CEO Doug Ostrover said: “The creation of Blue Owl Insurance Solutions represents a significant moment in Blue Owl’s journey. Our acquisition of KAM allows us to provide broader solutions to the multi-trillion-dollar insurance market at scale.

“KAM’s capabilities in investment-grade credit and real estate strategies supplement Blue Owl’s existing strength in these asset classes and further accelerate our ability to bring differentiated products and strategies to the market for Kuvare and third-party insurance clients.”