Lunate, Blue Owl Capital Acquire Minority Stake in Linden Capital

Abu Dhabi-based alternative asset manager Lunate Capital and American asset manager Blue Owl Capital on Tuesday announced that they have acquired a minority stake in US-based healthcare private equity firm Linden Capital Partners.

The acquisition comes as part of Lunate and Blue Owl’s $3 billion fund, which was launched in February this year and targets acquisitions of minority stakes in midsize asset managers.

Linden Capital Partners, which is based in Chicago, too confirmed a passive, minority investment from Blue Owl’s GP Strategic Capital platform and Lunate Capital via their joint venture (JV). However, the terms of the transaction were not disclosed.

Founded in 2004, Linden Capital Partners has grown to become one of the largest dedicated healthcare private equity firms in the US, through a model of partnership with management teams and a rigorous Value Creation Program.

Linden has approximately $8 billion of regulatory assets under management and has invested in over 45 healthcare companies across more than 350 transactions. Linden invests in middle market platforms in the targeted sub-sectors of healthcare services, medical products, and specialty distribution.

Blue Owl’s GP Strategic Capital platform provides minority equity and financing solutions to private capital managers and has $55.8 billion of assets under management. It has completed over 85 equity and debt transactions since its inception in 2010. Blue Owl’s Business Services Platform is also the largest post-transaction value creation team in the GP Stakes industry.

Lunate Capital is an independent global alternative investment manager based in Abu Dhabi and has $105 billion of assets under management.

In February 2024, Blue Owl’s GP Strategic Capital platform formed a JV Lunate which targets GPs with a clear sector specialisation, differentiated approach, strong leadership and culture, and an established foundation of a durable, stable platform with identifiable key drivers of franchise value.

Supports Linden’s Growth

The passive minority investment supports the continued growth of Linden’s investment platform and development of strategic initiatives by bringing additional flexibility to the firm’s balance sheet. The investment will not have an impact on the day-to-day management and investment strategies of Linden.

Linden’s Co-Founder and President Tony Davis said that over the past 20 years, we have had a relentless focus on supporting outstanding healthcare companies.

“Our goal of generating exceptional value for business owners and investors continues as we leverage our team of operating partners, investment professionals, and industry network to drive growth across our portfolio,” he said.

“Our strategic partnership with Blue Owl GP Strategic Capital and Lunate, both of whom Linden considers to be industry leaders in global private capital markets, marks another important step in the continued development of our platform, at a time when we see enormous opportunity to deliver further long-term sustainable growth and value creation, he added.

Michael D Rees, Co-President and Head of Blue Owl’s GP Strategic Capital platform, said that Linden’s strong investment track record, coupled with the firm’s differentiated partnership approach and strategic industry network gives them confidence in Linden’s continued growth and success.