Blue Owl performs to broader investor viewers as different property go mainstream

On the U.S. Open final week, a terse alternate between gamers Taylor Townsend and Jelena Ostapenko went viral — and introduced options supervisor Blue Owl Capital additional into the limelight.

Movies and images of the alternate flooded social media. Ostapenko, the ladies’s world No. 26 from Latvia, pointed a finger and shouted insults at Townsend, who had gained the second-round match however was later defeated in a aggressive match towards Barbora Krejčíková. Because the digicam panned in for viewers to get a more in-depth have a look at the confrontation, cautious observers may see a Blue Owl patch emblazoned on Townsend’s tennis costume.

The $284 billion asset administration agency, which focuses largely on personal credit score and actual property, is just not precisely the kind of family title you would possibly count on to see sponsoring a tennis participant. 

Townsend is one in all about 100 athletes competing in skilled tennis tournaments world wide this yr who’re backed by Blue Owl. It is a part of the agency’s technique to lift model consciousness primarily amongst high-net-worth people, and a part of a broader effort to convey different asset managers out of obscurity. 

“It is a premier approach to acquire visibility with our stakeholders and drive curiosity to assist them need to be taught extra about us,” mentioned Suzanne Escousse, chief advertising officer at Blue Owl. “On the finish of the day, they should know who you’re to name you when it counts.” 

Model consciousness is a comparatively new idea for the 50-year-old world of other property. Traditionally, the business has opted for a a lot decrease profile, shrouded in secrecy. Personal fairness and credit score companies have been initially funded by a small group of subtle buyers. Working behind closed doorways gave them a mystique of exclusivity, reinforcing their shortage worth and status.

Earlier than the Jumpstart Our Enterprise Startups, or JOBS, Act in 2012, these companies could not solicit outsiders, a lot much less promote. However the reticence advanced after that rule change and because the business broadened its shareholder base.

There was an onslaught of preliminary public choices from lots of the large managers earlier than and shortly after the monetary disaster, which got here with elevated disclosure necessities and public market communication requirements. Recall, Blackstone in 2007, KKR in 2010, Apollo International Administration in 2011 and Carlyle in 2012. Blue Owl did not checklist till 2021 – fashioned via a SPAC merger.

During the last decade or so, different asset managers have been delving into extra retail-oriented investor channels — notably via semi-liquid autos at cheaper price factors and with much less complexity. By this yr’s first quarter, property in perpetual methods from the highest seven publicly traded managers totaled $1.7 trillion, up 21% yr over yr and representing 41% of this cohort’s complete property below administration, in accordance with PitchBook. 

After all, options companies need to stroll a tremendous line to get their names on the market with out commoditizing the product. There is a basic rub that is talked about in each boardroom, in accordance with an individual with information of those conversations, who requested to stay unnamed to talk about personal discussions. The companies need to hold their institutional buyers pleased, whereas additionally capturing the rising share of retail buyers, the particular person mentioned, noting the phrase “velvet rope” is used continuously.

However the broadening of their investor base – from institutional buyers to high-net-worth people to, ultimately, 401(okay)s – has ushered different asset managers out of the shadows. 

“The high-net-worth wealth group represents the most important future alternative for the personal markets companies – that is the ‘it woman,'” mentioned Jennifer Prosek, founding father of Prosek Companions, a advertising and communications agency that represents many various asset managers. “Each personal markets agency has woken as much as the truth that model differentiation can transfer the needle.” 

Escousse joined Blue Owl in 2023 because the agency’s first chief advertising officer. Six months into her tenure, she accomplished a model pulse survey and located that consciousness was low even in comparison with rivals, she mentioned. 

“We began to search for unconventional sponsorship,” Escousse mentioned. “We all know that in case you can align your agency together with your stakeholders’ ardour factors, it is extra genuine. They’re extra prone to do enterprise with you.” 

She mentioned the monetary providers business had been “over-indexed” to 2 sports activities — tennis and golf. Blue Owl opted to go all in on tennis, starting with final yr’s U.S. Open. The technique concerned placing Blue Owl’s patch on the opponents of top-seeded gamers, who’re prone to get probably the most viewership – at a cheaper price level than a conventional TV advert. 

The agency’s brand was displayed in prime time on Australian world No. 36 Alexei Popyrin, who beat Serbian nice Novak Djokovic, at present seventh on the planet, on the 2024 U.S. Open. In January, Blue Owl expanded its presence in any respect Grand Slam tournaments to be the unique monetary providers associate for skilled tennis’ participant patch program. At roughly $20,000 per patch, this system will price Blue Owl about $2 million this yr, along with the associated advertising the agency does round skilled tennis. 

And Blue Owl is not the one options agency diving into shopper advertising.

Final yr, Apollo International and its retirement providers affiliate, Athene, partnered with PGA Tour golfer Patrick Cantlay – the primary model associate for the companies. Blackstone, the world’s largest different asset supervisor with greater than $1 trillion in AUM, has opted for conventional model outreach via social media, video, e mail, occasions and promoting. 

“I believe there’s been a shock by establishments that need to go to retail as a result of the worth of admission is excessive,” mentioned Prosek. “It is the rising market of selling.”