Blue Owl Submits SEC Registration for First Interval Fund
Blue Owl, an alternative asset manager with more than $250 billion in assets under management as of Dec. 31, 2024, has filed a registration statement with the U.S. Securities and Exchange Commission for its first interval fund, Blue Owl Alternative Credit Fund.
The fund’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. It is being advised by Blue Owl Alternative Credit Advisors II, LLC.
Its investment strategy is focused on alternative credit assets, including asset-based finance investments. This means it will primarily invest in a wide range of private debt and credit-related instruments, including asset-based finance, loans, bonds, and securitized products. The fund will utilize a flexible approach, dynamically shifting its investments to capitalize on market opportunities. Notably, it plans to dedicate at least 80% of its assets to these alternative credit investments, which could also involve creating joint ventures and special purpose vehicles to acquire and manage difficult-to-service loans or assets. Essentially, the fund aims to profit from less traditional credit markets, including those with higher risk and potential reward.
Prior to this fund being declared effective, the fund is conducting a private offering of Class I-F shares to certain accredited investors.
Following the completion of the private offering and prior to this fund being declared effective, the Class I-F shares will be reclassified as Class I shares.
In addition to the Class I shares, the fund intends to offer Class S and Class U shares and may offer additional share classes in the future. According to the company, each class of shares will have differing characteristics, particularly in terms of the sales charges that shareholders in that class may be subject to, and the distribution and servicing fee that each class may be charged.
The fund’s net asset value frequency will be daily and its management fee will be 0.75% of net assets.
To participate, individuals or entities must invest at least $25,000 for Class S and Class U shares. A higher tier, Class I shares, requires a minimum initial investment of $1 million. Subsequent investments are set at a minimum of $5,000, with an exception for those participating in the fund’s distribution reinvestment plan. This tiered structure allows the fund to cater to different investor profiles while setting clear capital entry points.
The fund has notably also entered into a facility agreement with the Cliffwater Enhanced Lending Fund and CELF Holdings (D9) LLC to acquire portfolio investments from time to time. The fund will offer quarterly repurchases and will be sold with no suitability restrictions.
