Owl Rock, with GSO, KKR pedigree, collects more than $2 bln on debut fund

  • Owl Rock Capital Partners targets $3.5 bln to $5 bln
  • BDC will lend to middle-market companies
  • Launched by GSO and KKR execs

Owl Rock Capital Partners raised more than $2 billion for its debut lending fund and could end up with $4 billion when marketing on the vehicle wraps up, according to a person with knowledge of the fundraising.

The firm’s business development company, Owl Rock Capital Corp, has raised at least $2.1 billion, the person said. The person said Owl Rock will likely collect around $4 billion for the first fund.

New Jersey State Division of Investment committed $400 million in August. New Jersey documents said the fund was targeting $3 billion to $5 billion, including leverage. BDCs are allowed to hold as much as 1:1 leverage.

Owl Rock didn’t return a request for comment. Park Hill Group is placement agent on the fundraising.

Owl Rock Capital will lend to middle-market companies, mostly in the U.S. The BDC will invest in senior secured or unsecured loans, subordinated loans or mezzanine loans and, to a lesser extent, equity-related securities and warrants, an SEC filing shows. Owl Rock’s typical credit investment will have maturities of three to 10 years, the filing said.

Fund I is charging a 1 percent management fee and a 20 percent carried-interest rate with a 6 percent preferred return, New Jersey documents said.

Owl Rock was formed by some heavy hitters in the private investment world. Key investment professionals include co-founders Douglas Ostrover, who was one of the founders of GSO Capital Partners, and Marc Lipschultz, former global head of energy and infrastructure at Kohlberg Kravis Roberts.

Other key executives include Craig Packer, former co-head of leveraged finance in the Americas at Goldman Sachs, who is chief executive of Owl Rock Capital; and Alan Kirshenbaum, chief operating and chief financial officer of Owl Rock Capital, Owl Rock Capital Partners and Owl Rock Capital Advisors. Kirshenbaum formerly was CFO of TPG Specialty Lending.

Action Item: Check out Owl Rock Capital’s SEC filing here: https://www.sec.gov/Archives/edgar/data/1655887/000119312516775339/d118324dn2a.htm

Photo courtesy of Owl Rock Capital Partners