Owl Rock lands two university commitments and credit facility

The New York-based firm raised a total of $2.3bn, with 10m equity purchases from Brown University and University of California.

Owl Rock Capital Partners has locked down equity sales from two large universities, along with an agreement for a senior secured revolving credit facility, regulatory documents show.

The New York-based investment firm sold close to 10 million shares to major US universities, according to US Securities and Exchange Commission filings.

Brown University in Providence, Rhode Island completed a 3 million equity acquisition with the firm. The Ivy-League school’s purchase represents 6.6 percent of Owl Rock’s 45.81 million shares. The board of the University of California system also bought 6.12 million, representing 13.35 percent of shares.

The firm also did a 2.4 million sale with an affiliate of Blue Pool Management.

On 1 February, Owl Rock signed a senior secured credit facility agreement with Sun Trust Bank as administrative agent. The facility has a maximum principal amount of $400 million, which can increase to $750 million through an uncommitted accordion feature, according to a SEC document.

The filing states that this facility will be guaranteed by Owl Rock subsidiaries that are formed or acquired by the firm in the future, while “proceeds of the facility may be used for general corporate purposes, including the funding of portfolio investments”.

The revolver is part of the firm's ramp-up of debt and equity fund raising and represents the largest first-time revolver for a BDC, according to a source familiar with the matter. 

The agreement stipulates a $50 million loan limit and interest rate set at either LIBOR plus a margin, or the prime rate plus a margin.

Owl Rock was not immediately available to comment.

The firm has reported $2.3 billion in equity sales in another recent regulatory filing. This is up from $2.2 billion the firm – launched in 2016 by Marc Lipschultz, formerly of KKR, and Doug Ostrover,  one of the GSO Capital Partners founders – had raised as of 30 September, as Private Debt Investor reported.

Owl Rock targets origination loans and debt and equity investments in mid-market companies with EBITDA of $10 million to $250 million, according to its website. 

Editor's note: this article has been updated to accurately reflect the university equity sales. A previous version incorrectly stated the number of shares as dollar amounts.