Narrative
Full Description
Project narrative
In April 2023, the New York Branch of the Industrial and Commercial Bank of China (ICBC) entered into a $180,000,000 USD subscription secured revolving credit facility (RCF) agreement with Dyal Capital Holdings LLC — a Delaware-incorporated provider of minority equity capital to large private capital firms and a division and wholly-owned subsidiary of Blue Owl Capital Inc., a Delaware-incorporated American alternative investment asset management company headquartered in New York City and listed on the New York Stock Exchange born out of the 2021 merger of Owl Rock Capital Group and Dyal Capital Partners — for unspecified purposes.
Staff comments
1. There is very little information available about this facility, though its presence in an ICBC booklet is definitive proof of its existence. Among other possibilities, facility may have been syndicated or the borrower was a Dyal / Blue Owl Capital-entity(s) not widely documented in the public view. For now, AidData has coded Dyal Capital Holdings LLC as the borrower as the proxy for Dyal Capital Partners (an entire segment of Owl Capital's business). This issue merits further investigation. 2. In June 2023, Blue Owl Capital announced that Dyal Capital Partners would be renamed to Blue Owl GP Strategic Capital. 3. Fund-level subscription-secured revolving lines of credit are a well-established instrument in the toolkits of a variety of private equity fund sponsors and managers, including for venture capital funds, hedge funds, debt funds, secondaries funds, and real estate funds. In many respects, real estate funds’ subscription-secured credit facilities are operationally similar to those of funds investing in various other asset classes. Subscription lines are generally secured solely by pledges of a fund’s rights to capital contributions from its investors (in addition to pledges of fund-level accounts into which investor capital is contributed), which allows real estate fund managers to provide collateral to the subscription lender without impairing their ability to pledge equity interests and real property held by the funds’ subsidiaries to property-level lenders. For more information, see https://www.goodwinlaw.com/en/insights/publications/2024/04/alerts-realestate-fs-subscription-secured-credit-real-estate-funds.