Blue Owl raises $850m from wealth market for alternative credit fund

Blue Owl Capital has announced the final close of its alternative credit fund aimed at the wealth market, after securing $850m (£632.5m) in capital commitments.

The alternative asset manager said investments had come from a “diverse” client base across its global private wealth channel.

Blue Owl called the final close a “milestone” for its private wealth platform, demonstrating its ability to deliver “differentiated access to a large and underpenetrated” alternative credit market that meets the growing demand for institutional-grade private credit solutions among individual investors.

The fund invests in alternative credit strategies with a focus on asset-based finance, such as financing based on financial or hard asset collateral, with the aim to generate current income and capital appreciation, to a lesser extent.

“Asset-based financing presents a differentiated approach to corporate credit by anchoring investments to tangible collateral or stream of cash flow,” Ivan Zinn, head of alternative credit at Blue Owl, said.

“Taken together, these characteristics may contribute to a return profile that generates consistent income and is less correlated to both traditional corporate direct lending and broader public markets.”

Zinn added that for private wealth investors, this has the potential to complement portfolios by offering stability, income, and diversification in a single strategy.

“Over the past few years, we have seen tremendous growth in our private wealth business, driven by deepening relationships with advisors and expanding access to our credit strategies across the Americas, EMEA and APAC,” said Madeleine Sinclair, head of private wealth, Americas at Blue Owl.

Blue Owl Capital has more than $273bn in assets under management invested across three multi-strategy platforms – credit, real assets and GP strategic capital.