Blue Owl plays to broader investor audience as alternative assets go mainstream

At the U.S. Open last week, a terse exchange between players Taylor Townsend and Jelena Ostapenko went viral — and brought alternatives manager Blue Owl Capital further into the limelight.

Videos and photos of the exchange flooded social media. Ostapenko, the women’s world No. 26 from Latvia, pointed a finger and shouted insults at Townsend, who had won the second-round match but was later defeated in a competitive match against Barbora Krejčíková. As the camera panned in for viewers to get a closer look at the confrontation, careful observers could see a Blue Owl patch emblazoned on Townsend’s tennis dress.

The $284 billion asset management firm, which focuses largely on private credit and real estate, is not exactly the type of household name you might expect to see sponsoring a tennis player. 

Townsend is one of about 100 athletes competing in professional tennis tournaments around the world this year who are backed by Blue Owl. It’s part of the firm’s strategy to raise brand awareness primarily among high-net-worth individuals, and part of a broader effort to bring alternative asset managers out of obscurity. 

“This is a premier way to gain visibility with our stakeholders and drive curiosity to help them want to learn more about us,” said Suzanne Escousse, chief marketing officer at Blue Owl. “At the end of the day, they need to know who you are to call you when it counts.” 

Brand awareness is a relatively new concept for the 50-year-old world of alternative assets. Historically, the industry has opted for a much lower profile, shrouded in secrecy. Private equity and credit firms were originally funded by a small group of sophisticated investors. Operating behind closed doors gave them a mystique of exclusivity, reinforcing their scarcity value and prestige.

Before the Jumpstart Our Business Startups, or JOBS, Act in 2012, these firms couldn’t solicit outsiders, much less advertise. But the reticence evolved after that rule change and as the industry broadened its shareholder base.

There was an onslaught of initial public offerings from many of the big managers before and shortly after the financial crisis, which came with increased disclosure requirements and public market communication necessities. Recall, Blackstone in 2007, KKR in 2010, Apollo Global Management in 2011 and Carlyle in 2012. Blue Owl didn’t list until 2021 – formed through a SPAC merger.

Over the last decade or so, alternative asset managers have been delving into more retail-oriented investor channels — particularly through semi-liquid vehicles at lower price points and with less complexity. Through this year’s first quarter, assets in perpetual strategies from the top seven publicly traded managers totaled $1.7 trillion, up 21% year over year and representing 41% of this cohort’s total assets under management, according to PitchBook. 

Of course, alternatives firms have to walk a fine line to get their names out there without commoditizing the product. There’s a fundamental rub that’s talked about in every boardroom, according to a person with knowledge of these conversations, who asked to remain unnamed to speak about private discussions. The firms want to keep their institutional investors happy, while also capturing the growing share of retail investors, the person said, noting the phrase “velvet rope” is used constantly.

But the broadening of their investor base – from institutional investors to high-net-worth individuals to, eventually, 401(k)s – has ushered alternative asset managers out of the shadows. 

“The high-net-worth wealth community represents the biggest future opportunity for the private markets firms – that’s the ‘it girl,'” said Jennifer Prosek, founder of Prosek Partners, a marketing and communications firm that represents many alternative asset managers. “Every private markets firm has woken up to the fact that brand differentiation can move the needle.” 

Escousse joined Blue Owl in 2023 as the firm’s first chief marketing officer. Six months into her tenure, she completed a brand pulse survey and found that awareness was low even when compared with competitors, she said. 

“We started to look for unconventional sponsorship,” Escousse said. “We know that if you can align your firm with your stakeholders’ passion points, it’s more authentic. They’re more likely to do business with you.” 

She said the financial services industry had been “over-indexed” to two sports — tennis and golf. Blue Owl opted to go all in on tennis, beginning with last year’s U.S. Open. The strategy involved putting Blue Owl’s patch on the opponents of top-seeded players, who are likely to get the most viewership – at a lower price point than a traditional TV ad. 

The firm’s logo was displayed in prime time on Australian world No. 36 Alexei Popyrin, who beat Serbian great Novak Djokovic, currently seventh in the world, at the 2024 U.S. Open. In January, Blue Owl expanded its presence at all Grand Slam tournaments to be the exclusive financial services partner for professional tennis’ player patch program. At roughly $20,000 per patch, the program will cost Blue Owl about $2 million this year, in addition to the related marketing the firm does around professional tennis. 

And Blue Owl isn’t the only alternatives firm diving into consumer marketing.

Last year, Apollo Global and its retirement services affiliate, Athene, partnered with PGA Tour golfer Patrick Cantlay – the first brand partner for the firms. Blackstone, the world’s largest alternative asset manager with more than $1 trillion in AUM, has opted for traditional brand outreach through social media, video, email, events and advertising. 

“I think there’s been a shock by institutions that want to go to retail because the price of admission is high,” said Prosek. “It’s the emerging market of marketing.”