Owl Rock Capital Partners is known for providing financial services to middle-market businesses, which are among the most underserved clients. The company recently went public and it's been the topic of many conversations in market chatter. The firm is one of the most highly respected in the nation in addition to being the largest of its kind. Owl Rock Capital is a unique company that is getting ready for an extreme period of growth, although their business has already reached remarkable heights for a young company that hasn't even been around for a decade. If this is a company that you're watching or if you're considering financial counseling for your business, here are 20 things you probably didn't know about Owl Rock Capital Partners to help you become more acquainted with the company.
1. It's a new company
Owl Rock Capital Partners has only been open for business since October 15, 2015. Just four years into operations, the firm has already shown impressive growth. It was founded by Doug Ostrover adn Marc Lipshultz, and Craig Packer. The company is known by a few different names which include Owl Rock Capital, Owl Rock, and Owl Rock Corporation. The headquarters is located in New York, New York.
2. They're a one-stop-shop
Owl Rock has earned the reputation of being a one-stop-shop for middle-market businesses. The firm offers financing solutions for qualified organizations. They maintain a crew of experienced executives in charge of the design of customized solutions for each client. This is one of the aspects of Owl Rock that makes the firm so unique, and it is a factor in their reputation as a highly desirable lending partner, serving middle-market businesses and their sponsors.
3. Owl Rock is a business development company
Businesses who are in need of capital funding find the necessary funding to help them grow and develop their operations. Owl Rock provides several aspects of the lending process including the origination, underwriting and the ultimate investment in a variety of different loan types. Their diversity makes them the lender of choice for middle-market companies that are not currently served by other prime lenders.
4. Owl Rock offers a wide range of loan types
There really is no such thing as a one size fits all when it comes to financing solutions. While some lenders prefer to operate according to a rigid platform for venture capital investment, Owl Rock offers more customized lending solutions with the availability of several different types of loans. They are managed by an SEC-registered investment adviser, referred to as Owl Rock Capital Advisors, LLC. Some of the loan type choices include subordinated loans, mezzanine loans, equity-related securities and warrants, and senior secured or unsecured loans. This is why the firm is considered to be a one-stop-shop.
5. The firm went public recently
Owl Rock Capital Corporation made the decision to go public. The initial public offering launched on July 18, 2019. the firm priced the IPO at $15.30 per share of common stock with an offering of 10 million shares for sale. This is a public vehicle for retail investors to make use of the firm's direct-lending strategy. Owl Rock Capital Corporation is listed on the New York Stock Exchange under the ticker symbol ORCC. The public offering is considered to be business development.
6. Owl Rock's platform
As a business development company, the focus of teh company is to provide loan origination and make debt investments in companies with the potential for generating income. They're all about leveraging their backing and relationships within the private equity market to create investment opportunities featuring risk-adjusted return potential tht is attractive to their clients.
7. They don't just do business, they educate as well
The team employed at Owl Rock are all seasoned professionals with the experience in investment that enables them to take a long and hard look at the credit markets from a variety of different perspectives. Combined with diverse credit underwriting expertise that spans a variety of different industries, partners have a more holistic view of the investment process. Each has a complete understanding of the opportunities which exist in today's credit markets as well as the accompanying risks. This amounts to a more calculated risk. They're available to customize financial solutions thanks to this wealth of knowledge and insight to better serve clients throughout the origination process.
8. Owl Rock Capital Corporation is one of the largest lenders in the United States
When it comes to lenders who cater to middle-market and small businesses, Owl Rock Capital is one of the biggest. Having recently gone public they aim to grow even larger in the months and years to come. The assets of the firm total approximately $7 billion. At the initial public offering, the firm raised almost $176 million in proceeds for the growth of the company's investment portfolio. They're proud of the fact that the company has been founded by three bonafide professionals from Wall Street with several decades of experience among them.
9. The founders have nearly 8 decades of experience
Ostrover, Lipshultz and Packer have about 75 years of successful credit, underwriting and alternative business investment experience between them. This builds confidence in the clients that are served by the firm. They each bring about 25 years of experience with former work experience at GSO/Blackstone, KKR, and Goldman Sachs. They've worked for some of the most prestigious financial firms in the nation, and the three got together to combine their expertise to serve a market that has been in need of an alternative type of service.
10. Owl Rock offers a literature library
Owl Rock has endeavored to make using their services as convenient for customers as possible. They offer an online literature library that contains documents that their clients may need to save time and effort. These are downloadable forms which are available on the website. This is yet one more innovative approach to business that Owl Rock Capital hs taken to serve their client base.
11. The criteria for Owl Rock
Owl Rock deals with a variety of financial situations including sponsored and non-sponsored. The firm serves companies with earnings before interest expense, depreciation and amortization (EBITDA) between $10 to $250 million annually with revenue of $50 million all the way up to $2.5 billion at the time that the investment is made. They have the ability to anchor or lead debt financings in a range between $100 to $500 million.
12. Owl Rock makes good use of proceeds
Proceeds brought in by Owl Rock Capital Corporation are resplnisbly used for acquisitions for growth of the company in the areas of market or product expansion. Further proceeds are used for recapitalizations and refinancing. The firm in on the move and it's following a strategic plan for growth and development.
13. Their approach stands out
Owl Rock relies upon an investment strategy with a primary focus on origination and additionally, in making loans, as well as creating debt and equity investments for middle-market companies based in the United States. The firm invests in senior secured and unsecured loans, as well as subordinated or mezzanine loans. The smaller part of their focus is upon equity-related securities and warrants.
14. Owl Rock supports business growth
Thanks to solid backing from long-term investors, Owl Rock is able to make large commitments to ensure that the financial needs for growth and development of the clients who borrow from the firm are fully supported. There is no shortage of funding and the resources are steady and constant to supply customized services.
15. Total transparency
Another reason why Owl Rock Capital Corporation is one of the most trusted lenders in the industry is that they consistently strive to maintain total transparency in all of their lending processes and other transactions. This isn't always embraced as a best practice among lenders, and unpleasant surprises are something that Owl Rock's trusted professionals works hard to avoid. There should be no hidden consequences when changes occur and customization is required, nor should there be hidden penalties. Owl Rock is known for doing an excellent job of maintaining total transparency so their clients understand the process along with the terms associated with each customized solution for their business. It's a matter of attending to good and solid business practices and adhering to them.
16. Industries served by Owl Rock Capital Corporation
The skilled and knowledgeable professionals at Owl Rock have experience in customizing financial solutions from middle-market companies across a wide range of industries. With this type of understanding about the needs which are common within the various industries, Owl Rock is at an advantage for more closely meeting the real existing needs of each client. They've actively served clients within the domains of Business Services, Consumer Products, and Retail Healthcare Services, Pharma and Healthcare IT, the Food and Beverage Industry, Distribution and Logistics, Software and Technology, Manufacturing and Industrials, Energy and Natural Resources, Aerospace and Defense, and Transportation and Logistics.
17. They've originated billions in transactions
Since the day that Owl Rock Capital Partners opened its doors for business, it has successfully originated billions of dollars in transactions. The last estimate revealed that the firm has made around $12.7 billion in transactions. This is a hefty sum for only being in business for just four years. The firm is also planning to expand and grow to an even larger provider in the near future.
18. The risk taken is a calculated one
Owl Rock is careful to make no guarantees to investors. Although there is a potential for the generation of income, there are times when the investment objectives are simply not achieved. This is the nature of the investment business and those who participate with the goal of generating a return on their investments, fully understand that they are also undertaking a calculated risk. Sometimes you win and at other times you don't. Transparency is therefore of even greater value in understanding the odds based upon strategies employed and previous track records.
19. What makes Owl Rock Capital Corporation so special?
Owl Rock is a firm that falls under the classification of a BDC, also known as a Business Development company. The rules pertaining to such firms were developed by Congress in 1980, as a means of encouraging a better flow of capital to companies which are small to medium in size, and to aid them in their growth and development. BDCs are the catalyst for connecting investors with a range of investments in mostly private companies that tend to fall through the cracks when they do not qualify for traditional lenders. BDCs make it possible for investors to diversify their investment portfolios with the range of industries they serve. This makes it a good deal for everyone concerned, under optimum circumstances.
20. What makes BDCs a good deal
Owl Rock, as a BDC has certain advantages over other finance firms which includes the allowance of a pass-through on their tax treatment. This comes with the condition that a minimum of ninety percent of the capital gains and income are distributed to their shareholders on a yearly basis. Owl Rock and other BDCs are governed and regulated by the 1940 Investment Company Act. Each business within the category is mandated to file 10-Q's quarterly with a 10-K audited financial statement on an annual basis. Each investment must include a detailed disclosure along with a schedule of investment. The checks and balances system is thorough. On top of this, a quarterly valuation of each investment must be completed by an independent third party. A minimum of seventy percent of the portfolio must be invested in companies that are based in the United States, whether public or private, and these companies must have a market capitalization that falls below the amount of $250 million.
Written by Garrett Parker
Read more posts by Garrett Parker