Alternative asset manager Blue Owl Capital is to acquire Kuvare Insurance Services (KAM), a boutique investment management firm focused on providing asset management services to the insurance industry, in addition to Kuvare UK Holdings (Kuvare), for $750m.
Blue Owl will fund the KAM acquisition through a combination of $325m in cash and $425m in Blue Owl Class A common stock. The acquisition is expected to close in the second or third quarter of 2024 and remains subject to customary regulatory approvals and other closing conditions and specified termination rights.
Upon closing of the KAM acquisition, most KAM employees are expected to join Blue Owl. In addition, there is potential for up to a $250m earnout subject to certain adjustments and achievements of future revenue targets.
Separately, Blue Owl has made a long-term investment in Kuvare, purchasing $250m of preferred equity.
Founded in 2015, Kuvare is a technology-enabled financial services firm operating several insurance and reinsurance businesses and has become a top 20 fixed and indexed annuity writer in the United States. Kuvare’s business segments include retail, institutional reinsurance and specialty insurance advisory services.
