Blue Owl Capital has launched its first interval fund with $850m of capital secured from a range of clients across its global private wealth channel.
The Blue Owl Alternative Credit Fund (OWLCX) aims to provide individual investors with access to a wide range of alternative credit assets that have traditionally only been available to mainly institutional investors.
Read more: Wealthy US investors pile $48bn into private credit funds
The new fund has a flexible mandate that can allocate across credit assets backed by contractual cash flows from financial and hard assets.
The strategy mitigates risk via diversified pools of amortizing assets and, by targeting differentiated private credit asset types, intends to reduce correlation to traditional credit investments.
Structured as a registered interval fund, the Blue Owl Alternative Credit Fund offers daily purchases and aims to provide monthly distributions and quarterly liquidity via repurchase offers.
It is managed by Blue Owl Alternative Credit Advisors II LLC, which has a 65-strong investment team, including a “dedicated data science effort that adds analytical capabilities via decades of counterparty data and tens of millions of data points”.
Read more: Blue Owl’s credit platform AUM increases 53pc to $145bn
“With this launch, we’re opening the door for individual investors to access a market traditionally dominated by institutions – one that offers strong income potential backed by diversified pools of asset collateral,” said Sean Connor, president and chief executive of global private wealth at Blue Owl.
“OWLCX reflects Blue Owl’s commitment to continue democratising alternative assets in a way that we believe aligns with the evolving demands of today’s private wealth investors, offering institutional-grade solutions with the accessibility and transparency they expect.”
According to Ivan Zinn, head of alternative credit at Blue Owl, the firm believes that asset-based finance represents the next opportunity for investors in private credit.
Blue Owl’s alternative credit strategy has a 20-year track record, during which it has deployed over $24bn (£17.6bn) of capital across approximately 950 investments.
Read more: Blue Owl: Stability of private credit markets ‘amplified’ by market volatility
