(Bloomberg) -- Blue Owl Capital Inc. has agreed to buy Kuvare Asset Management, the latest deal to underline a push by private-markets investment firms to tap pools of assets in the insurance market.

The New York-based alternative asset manager is paying $750 million in cash and stock for US-based Kuvare Asset Management, according to a statement. It is also buying about $250 million of preferred equity in Kuvare UK Holdings, a life-and-annuity insurance company.

Upon the closing of the acquisition, Blue Owl will be allocated up to $20 billion of assets under management and Kuvare will continue to manage the allocations for its insurance businesses and strategic investments. The two companies have also entered into an investment management agreement that allows Blue Owl to deploy up to $3 billion of assets across its existing platforms, including those focused on credit and real estate. 

Blue Owl Capital had been holding informal talks about a possible expansion in Europe, Bloomberg reported last year. Most of Kuvare’s employees are expected to join Blue Owl after the deal closes. Blue Owl said it’s offering up to $250 million for a potential earnout if certain revenue targets are met.

Blue Owl Capital is one of the largest private lenders in North America and was formed in 2021 after Owl Rock, founded by Marc Lipschultz and Doug Ostrover, merged with Dyal Capital, founded by Michael Rees, through a SPAC deal.

Ardea Partners and PJT Partners were the lead financial advisors to Blue Owl, while JPMorgan Chase & Co. advised Kuvare and is acting as co-placement agent on the investment alongside Royal Bank of Canada. The Wall Street Journal reported the deal earlier.

(Adds US-based to second paragraph.)

©2024 Bloomberg L.P.