Blue Owl Capital Incorporated, the New York-headquartered alternative asset manager, has purchased $250 million preferred equity in Kuvare UK Holdings, the parent company of Kuvare Life Re (Bermuda).

The news came as Blue Owl announced that it has entered into a definitive purchase agreement to acquire Kuvare Insurance Services LP — doing business as Kuvare Asset Management — for $750 million.

KAM is a boutique investment management firm focused on providing asset management services to the insurance industry, including Kuvare UK Holdings.

Blue Owl will fund the acquisition through a combination of $325 million in cash and $425 million 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, most KAM employees are expected to join Blue Owl.

Blue Owl said this investment in Kuvare creates long-term alignment between Blue Owl and Kuvare, and provides valuable growth capital to Kuvare’s insurance companies, each of which will become new asset management clients of Blue Owl.

Blue Owl and Kuvare also entered into investment management agreements that will allow Blue Owl to deploy up to $3 billion of assets across its existing credit, GP strategic capital and real estate investment platforms, which can grow over time.

Upon closing of the KAM acquisition, Blue Owl will be allocated up to $20 billion of assets under management, in aggregate.

Kuvare will continue to manage the overall asset allocations for its insurance businesses and strategic investments.

Dhiren Jhaveri, founder, chairman and CEO of Kuvare, said: “It is an important and exciting step in the evolution of Kuvare to associate in such an impactful way with an asset manager of Blue Owl's calibre.

“We always strive to be excellent stewards of assets entrusted to us by our policyholders and reinsurance partners, and the team at Blue Owl has demonstrated a unique commitment to helping us achieve our goals.

“We especially look forward to continued collaboration with our many valued KAM colleagues who will join the Blue Owl team at the close of this transaction.”