Blue Owl Capital has announced its decision to acquire IPI Partners, a prominent digital infrastructure fund manager, for a staggering $1 billion. This strategic move will significantly enhance Blue Owl's assets under management, increasing them by $10.5 billion, thus solidifying its position in the ever-evolving financial landscape. The alternate asset manager will purchase IPI from affiliates of ICONIQ Capital and Iron Point Partners.
The transaction structure comprises 80% equity from Blue Owl and 20% cash, reflecting a well-considered approach to maintaining liquidity while making a substantial investment. Expected to conclude in either the fourth quarter of this year or the first quarter of 2025, this acquisition has been forecasted by Blue Owl to be neutral to its earnings in 2025, with modest accretion anticipated in 2026.
This aligns with the company's strategic vision to invest in high-potential sectors. IPI Partners caters primarily to large hyperscale and enterprise data center users, boasting an impressive portfolio of 82 data centers with over 2.2 gigawatts of leased capacity spread across the US, Europe, the Middle East, Africa, and the Asia Pacific region. The joint statement from Blue Owl’s Co-Chief Executives, Doug Ostrover and Marc Lipschultz, highlighted the vast market opportunities in financing data centers.
They noted that there is a growing investor appetite for strategies aligned with cloud computing and artificial intelligence, which are rapidly becoming the cornerstones of technological advancement. Blue Owl’s acquisition of IPI will enrich its digital infrastructure strategy, leveraging IPI’s existing real estate platform.
Matt A'Hearn, IPI's Managing Partner, will spearhead this initiative, providing valuable insights and strategic direction under the supervision of Blue Owl Co-President Marc Zahr, who oversees the real estate segment. Divesh Makan, the Founding Partner of ICONIQ Capital, emphasized IPI's transformation into one of the leading private developers and investors of data centers worldwide, asserting that they have successfully addressed the challenges faced by leading global technology firms. An affiliate of ICONIQ is set to render services to Blue Owl, including investment analysis and investor relations, in exchange for milestone payments projected to occur between 2026 and 2028.
This collaborative effort is expected to enhance the operational capabilities and market reach of both firms. Tom Lynch, a Managing Partner at Iron Point, expressed optimism regarding the collaboration, stating that the integration of Blue Owl into IPI's operations would facilitate unprecedented scale, enabling them to cater to the requirements of the globe's largest technology companies more effectively..