(Bloomberg) -- Owl Rock Capital Partners is targeting $5 billion for its strategy of providing senior loans to upper middle-market companies.
The direct lender is looking to raise cash across two vehicles: a business development company and another fund, according to documents from the New Jersey State Investment Council. The pension fund is moving forward with a $150 million commitment to the strategy following a meeting Wednesday, a spokeswoman confirmed in an email.
Owl Rock will look to invest in private equity-backed U.S. companies generating between $50 million and $2.5 billion in annual revenue, and $10 million to $250 million of annual earnings before interest, taxes, depreciation and amortization. Loans will typically range between $20 million and $250 million.
A spokesman for Owl Rock declined to comment.
The move comes as private debt fundraising has rallied following a slow start to the year, fed mostly by investors’ appetite for distressed debt. In the second quarter, $9 billion was raised globally for direct lending, according to London-based research firm Preqin.
The asset manager, founded in 2016 and now at $17.3 billion in total assets, last year scored an investment from Neuberger Berman’s Dyal Capital Partners that valued the firm at about $2.5 billion. Co-founders Doug Ostrover, Marc Lipschultz and Craig Packer held senior positions at Blackstone Group Inc., KKR & Co. and Goldman Sachs Group Inc., respectively.
(Updates with a New Jersey State Investment Council comment in paragraph two.)
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