(Bloomberg) -- Blue Owl Capital Inc. formally kicked off fundraising for its sixth fund to invest in private equity firms with a sweetener for early investors to help navigate a challenging fundraising environment, according to people with knowledge of the matter.
The New York-based firm is offering investors a discount of 100 basis points on management fees for the first 12 months for those who close prior to June 15, the people said. Investors who commit and close at least $25 million on or before that date will receive the same discount on incremental commitments.
A spokesman for Blue Owl declined to comment.
Blue Owl is targeting about $13 billion for the sixth fund, Bloomberg previously reported. The firm could hold a first close sometime early next year, according to one of the people. Alternative asset managers have been offering fee discounts and extended fundraising timelines as they try to raise capital from institutional investors who are generally over-allocated to private equity.
Blue Owl takes stakes in asset managers and offers direct lending to companies. It has backed firms including Robert F. Smith’s Vista Equity Partners, CVC Capital Partners, ICONIQ Capital and financial services investor TowerBrook Capital Partners.
The firm’s fifth fund is about 85% committed, with recent investments in Stonepeak and I Squared Capital, according to a notice sent to investors.
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