Finance & Economy

Real Estate

Walker Webcast celebrates episode 150 with special guest, Marc Lipschultz

July 26, 2023

Walker Webcast celebrates episode 150 with special guest, Marc Lipschultz

Marc Lipschultz

Co-CEO of Blue Owl Capital Inc.

On the 150th episode of the Walker Webcast, Willy Walker sat down with Marc Lipschultz, Co-CEO of Blue Owl Capital Inc.

On this special 150th episode of the Walker Webcast, I had a chance to sit down and chat with Marc Lipschultz, the Co-CEO of Blue Owl Capital Inc. (NYSE: OWL). Prior to his work at Blue Owl Capital, Mark co-founded Owl Rock Capital Partners, the predecessor of Blue Owl’s credit platform. Prior to founding Owl Rock, Marc spent over twenty years working for KKR and Goldman Sachs. Currently, Blue Owl Capital is one of the fastest-growing alternative asset management firms in the world, with Marc and his colleagues managing over $144 billion in assets.

A shift in ownership

Over the past decade and a half or so, we’ve seen a tremendous shift in the ownership of large companies. In 2007, there were roughly 7,000 publicly traded companies and 1,800 companies held by private equity firms. Today, there are roughly 4,600 publicly traded companies and 11,000 companies held by private equity firms. Since there are a handful of enormous companies operating within the private equity space, some may find this alarming.

However, Marc doesn’t see any issue with this at all. He simply chalked this up as an effect of the robust capital markets that have been built up within the United States. Today, companies don’t need to go public if they’re looking to raise additional capital. Businesses can stay privately owned for longer periods of time and rely on alternative sources of funding, such as VC funding.

Why does Blue Owl focus on the United States?

Although a portion of Blue Owl’s $144 billion in assets under management are invested abroad, the vast majority of them are invested domestically. According to Marc, Blue Owl’s primary focus is to be an excellent steward of capital for investors, providing them with great risk-adjusted returns, and to put things simply, the United States is a great place to find these investments. Every time a crisis hits, the U.S. has a tendency to stand tall and make it through, and the same cannot be said for every country.

Blue Owl’s real estate portfolio

In an industry with stellar real estate portfolios, Blue Owl’s portfolio stands out amongst the crowd. This is because the firm’s strategy predominantly revolves around securing triple net leases with very large corporate clients. This strategy is much different than most of Blue Owl’s competitors, which tend to build out broad portfolios by having investments in almost every real estate sector. Marc and Blue Owl employ this focused strategy, as it stays true to the overarching goal of providing low-risk, low-volatility returns to investors.

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