Blue Owl Capital (NYSE: OWL) has launched Blue Owl Alternative Credit Fund, raising $850 million in investable capital.
The fund, which goes by the ticker OWLCX, represents “one of the largest ever interval fund launches,” according to a Sept. 17 statement by the lender.
OWLCX invests across multiple types of private credit assets, with a focus on asset-based finance opportunities. According to an investor presentation, the fund will target 75% ABF assets and 25% other credit investments.
As of June 30, the fund’s portfolio entirely consisted of ABF assets across 13 positions, including credit card receivables, automotive and personal loans, and revenue-based receivables from small businesses, according to a shareholder letter.
“The ABF market remains significantly undercapitalized. The addressable market is estimated at approximately $11.2 trillion with only $450 billion in dedicated fund manager assets under management, representing roughly a 4% penetration rate,” Blue Owl wrote in the shareholder letter.
The interval fund offers daily purchases and “intends to provide monthly distributions and quarterly liquidity via repurchase offers.”
The fund includes a 0.75% management fee and a 10% investment fee subject to a 6% hurdle.
Featured image: Cris Faga/Getty Images
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