Blue Owl Adds $1B in Assets with Cowen Healthcare Acquisition

Blue Owl Capital inked a deal to acquire funds managed by Cowen Investment Management’s life sciences investment manager, Cowen Healthcare Investments (CHI).

Blue Owl’s market presence in the life sciences sector will be strengthened by the inclusion of about $1 billion in assets across various funds, with an emphasis on mid-to-late-stage equity investments in biopharmaceutical and healthcare companies.

Blue Owl, a $150 billion asset manager, will also incorporate the CHI team, including senior leaders Kevin Raidy, Tim Anderson and Rob Sine. Upon completion of the transaction, CHI’s funds will be rebranded to Blue Owl Healthcare Opportunities.

“The rapid level of innovation within science and technology is driving a deep need for private capital solutions to support the life sciences sector’s exponential growth,” said Blue Owl Capital Co-CEO Marc Lipschultz.

Blue Owl’s life science strategy makes credit, royalty and growth equity investments in biopharmaceutical, medical technology and healthcare innovators.

Recent transactions include the acquisition of a royalty interest in Novartis’ Pluvicto, a radiopharmaceutical used to treat metastatic castration-resistant prostate cancer, and an interest in Horizon Therapeutics’ Tepezza, the first FDA-approved treatment for thyroid eye disease.

The transaction is expected to close in the fourth quarter. Sumitomo Matsui Financial Group’s SMBC served as financial advisor to Blue Owl.