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Blue Owl Capital announced Monday it plans to acquire digital infrastructure fund manager IPI Partners in a $1 billion deal, with legal counsel provided by Gibson Dunn & Crutcher LLP, Morrison Foerster LLP, and Kirkland & Ellis LLP.

The New York-based asset manager said the acquisition will be financed using 20% cash and 80% equity, with the transaction expected to close in late 2024 or early 2025. Blue Owl is purchasing Chicago-based IPI from affiliates of Iconiq Capital and Iron Point Partners.

Founded in 2016 by Iconiq and Iron Point, IPI has amassed $10.5 billion in assets under management. Its portfolio includes 82 data centers worldwide, with more than 2.2 gigawatts of leased capacity. According to Blue Owl, IPI’s tenants primarily consist of large global corporations.

IPI’s Team to Remain Intact

Following the acquisition, Blue Owl said IPI’s existing team, which includes more than 70 employees globally and over 50 investment professionals, will remain in place to manage IPI’s funds. Marc Zahr, head of Blue Owl’s real estate platform, will continue to lead the division, while IPI managing partner Matt A’Hearn will guide the company's digital infrastructure strategy.

Blue Owl to Acquire IPI : Legal Counsel for the Deal

IPI was represented by a team from Gibson Dunn & Crutcher LLP, including Shukie Grossman and Michael Piazza, along with additional counsel from Morrison Foerster LLP. Specific details regarding Kirkland & Ellis LLP’s representation of Blue Owl were not immediately available.

This acquisition marks a significant move for Blue Owl, expanding its reach into the digital infrastructure sector through IPI’s considerable data center portfolio. The deal underscores the growing demand for digital infrastructure investment opportunities.