Blue Owl Capital agrees to buy Oak Street Real Estate in $950M deal

Chicago’s Oak Street Real Estate Capital will soon have a new owner.

Blue Owl Capital will use a combination of cash and stock to buy the 12-year-old company for $950 million, the Chicago Business Journal reported. The New York firm said shareholders in Oak Street, which manages $10.8 billion and has more than 35 employees, can earn “up to an additional $650 million” once it achieves “certain performance thresholds.”

Members of Oak Street’s leadership team will remain on board to lead the business, Yahoo!Finance reported. Oak Street’s headquarters at 125 S Wacker Drive, will become an additional office for Blue Owl and Marc Zahr, the real estate company’s co-founder and CEO, will join the board and serve on the executive committee.

“My team and I look forward to partnering with the Blue Owl team to bring Oak Street’s differentiated product offerings to a new base of investors,” Zahr said.

Oak street is a women- and minority-owned business, according to its web site.

Blue Owl Capital, whose shares started trading in May, was born from the merger of Dyal Capital and Owl Rock Capital Group that valued the new firm at about $12.5 billion. About 250 people work at the firm, according to Yahoo Finance.

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