Blue Owl Capital Inc., an alternative asset management firm, has announced an agreement to acquire IPI Partners, LLC, a digital infrastructure fund manager. IPI is being sold by ICONIQ Capital and Iron Point Partners for approximately $1 billion, a transaction that will involve 80% in Blue Owl equity and 20% in cash. The acquisition is anticipated to close in late 2024 or early 2025, pending certain conditions. The deal is expected to have a neutral impact on Blue Owl’s 2025 earnings and bring modest growth by 2026. Blue Owl will also collaborate with ICONIQ to support future expansion.
IPI, founded in 2016, manages around $10.5 billion in assets and has become one of the largest private U.S.-based data center investors. Its portfolio includes 82 data centers with over 2.2 gigawatts of leased capacity, serving large enterprises, including several Fortune 100 companies. The firm operates globally across the U.S., EMEA, and APAC, and its employees, including 50 investment professionals, will continue managing IPI’s funds under Blue Owl.
Upon finalizing the acquisition, IPI’s business will enhance Blue Owl’s digital infrastructure offerings as part of its Real Estate platform, overseen by Co-President Marc Zahr. IPI’s Managing Partner, Matt A’Hearn, will lead Blue Owl’s digital infrastructure strategy, reporting to Zahr.
ICONIQ will also enter into an agreement with Blue Owl to provide services such as investment analysis and investor relations. Service payments are contingent upon meeting certain future targets, with payments expected between 2026 and 2028.
Blue Owl’s Co-CEOs, Doug Ostrover and Marc Lipschultz, commented on the acquisition, stating that IPI’s expertise will strengthen Blue Owl’s net lease strategy while allowing expansion into digital infrastructure. They noted the growing demand for data centers and the increasing investor interest in technology-driven sectors like cloud and AI.
ICONIQ’s Founding Partner, Divesh Makan, reflected on IPI’s growth and its pivotal role in serving global data center customers. He expressed enthusiasm for continuing to build on this partnership with Blue Owl.
Tom Lynch, Managing Partner at Iron Point, remarked on the successful growth of IPI and expressed confidence that Blue Owl will help further scale the business.
Matt A’Hearn, Managing Partner of IPI, expressed excitement about joining Blue Owl and expanding the firm’s digital infrastructure strategy. He also thanked ICONIQ and Iron Point for their support in establishing IPI as a key player in the sector.
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Societe Generale, and TD Securities (USA) LLC acted as co-financial advisors to Blue Owl. Kirkland & Ellis LLP served as legal advisor to Blue Owl, while Gibson, Dunn & Crutcher LLP acted as legal advisor to IPI. Berkshire Global Advisors L.P. advised Iron Point on the transaction.
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By Proptechbuzz
By Ravi Kumar
