Blue Owl Capital (NYSE: OWL)’s arm that invests in other alternative asset managers is nearing a deal to acquire a minority stake in healthcare-focused private equity firm Linden Capital Partners, according to people with knowledge of the matter.
The firm is set to back Linden through its flagship GP stakes fund as well as its first vehicle dedicated to mid-size managers, said one of the people, all of whom asked not to be identified to discuss confidential information.
A Blue Owl spokesperson declined to comment. Linden representatives didn’t immediately respond to a request for comment.
Alternative asset managers have increasingly pursued minority stake sales for liquidity, with founders often using proceeds to back new strategies or invest in new funds, among other options.
Chicago-based Linden has backed businesses including Alcresta Therapeutics, which aims to commercialize products for people with gastrointestinal disorders and rare diseases; Smile Doctors, a dental services platform; ERG, which operates clinical research sites; and Aspen Surgical, a maker of personal protective equipment and other supplies.
The firm, founded by Tony Davis and Brian Miller, has raised $7 billion in commitments, a figure that has been “augmented capital provided by our limited partners and others for larger transactions,” its website shows.
Linden’s $3 billion fifth buyout fund counts New York State Teachers’ Retirement System, Texas County & District Retirement System and Sacramento County Employees’ Retirement System among its investors, according to data compiled by Bloomberg.
