Blue Owl Capital is looking to build up its infrastructure capabilities with the acquisition of a digital infrastructure fund manager.
The alternatives asset manager has agreed to buy the business of IPI Partners from an affiliate of ICONIQ Capital and an affiliate of Iron Point Partners for roughly $1 billion — about 80 percent in stock and 20 percent cash.
The acquisition will add about $10.5 billion in assets to Blue Owl and augment the firm’s digital infrastructure strategy, which is part of real estate. Blue Owl Co-President Marc Zahr will continue to lead real estate, with IPI’s managing partner, Matt A’Hearn, heading up digital infrastructure and reporting to Zahr.
The purchase is expected to close in the fourth quarter or first quarter of 2025.
Founded in 2016 as a joint venture between ICONIQ and Iron Point, Chicago-based IPI is a private U.S.-based data center investor with a portfolio of 82 global properties.
IPI’s 70 employees (more than 50 of whom are investment professionals) are expected to join Blue Owl and will continue to manage IPI’s existing funds. An affiliate of ICONIQ will partner with Blue Owl to provide investment analysis and investor relations services.
Blue Owl’s Co-CEOs Doug Ostrover and Marc Lipschultz said in a statement that IPI’s investment team, investor base and global scale will enhance Blue Owl’s capital solutions and investment offerings.
“The acquisition of IPI with its deep sector expertise complements our existing net lease strategy while providing an ideal opportunity to expand Blue Owl’s digital infrastructure strategy,” said the CEOs. “There is a massive market opportunity to finance data centers, matched by an increasing investor appetite for additional strategies investing behind cloud and AI-driven secular tailwinds.”
Blue Owl manages more than $192 billion across three multi-strategy platforms: credit, GP strategic capital, and real estate.
News of the acquisition comes hot off the heels of Blue Owl completing its purchase of $10 billion alternative credit manager Atalaya Capital Management. In July, it finalized its purchase of $20 billion boutique investment management firm Kuvare Asset Management. And in June, the alternatives manager closed on its acquisition of $10 billion real estate lender Prima Capital Advisers.