Blue Owl launched with immediate credibility and fast success. A 2021 merger of two funding outlets introduced Wall Road royalty — veterans of Blackstone, KKR, Goldman Sachs, and Neuberger Berman — into an investing superband that raised oceans of cash and did offers at a clip.
Two years in, it’s already cracking.
A schism has opened alongside the traces of the union two years in the past of Owl Rock, a significant participant in non-public credit score, and Dyal, the brainchild of Michael Rees, and the most important participant within the profitable enterprise of amassing stakes in different funding outlets.
Blue Owl’s co-CEOs, Doug Ostrover and Marc Lipschultz, who each come from the Owl Rock facet of the wedding, have requested Rees to resign after months of rising tensions, folks aware of the matter mentioned. Rees refused, the folks mentioned, telling them that he believes his contract is ironclad and has no plans to depart behind the enterprise that he named after his children 12 years in the past.
A quiet reorganization final month made these battle traces specific. Lipschultz, who had been co-president of the agency with Rees, was elevated to co-CEO, alongside Ostrover. Rees remained a rung down, and two different executives have been added as co-presidents beside him.
The reshuffle was disclosed in a securities submitting fairly than a press launch and public rollout, an uncommon transfer for a listed firm making modifications on the high. (The agency did put out a press launch saying a current mid-level rent.)
Blue Owl mentioned within the submitting the modifications “replicate how the corporate operates its enterprise.” Rees has advised buddies that the strikes have been an effort to sideline him and switch up the stress on him to depart. He has privately fumed at what he believes was a retrade of an unique settlement that envisioned Ostrover as CEO, and he and Lipschultz, as his lieutenants, making joint choices in regards to the course of the agency.
A Blue Owl spokesperson declined to touch upon behalf of the agency and the three executives.