Blue Owl Capital Inc. (NYSE: OWL) announced a $2.5 billion expansion of its strategic partnership with Finance of America Companies Inc. (FOA), a leading provider of home‑equity‑based financing for retirees. The deal includes a $50 million equity investment by Blue Owl, giving the firm a direct stake in FOA’s growth and aligning long‑term interests between the two companies.
Blue Owl’s permanent‑capital model and expertise in alternative credit and real‑assets financing underpin the partnership. As of September 30, 2025, Blue Owl managed more than $295 billion in assets across its credit, real‑assets, and GP strategic‑capital platforms, and its fee‑related earnings grew 19% year‑over‑year in Q3 2025. The firm’s data‑center financing capabilities and deep experience in scaling consumer‑credit products will be leveraged to accelerate FOA’s retirement‑focused home‑equity lending platform.
FOA’s core business remains reverse mortgages, but the partnership will broaden its product suite to include new, differentiated offerings such as HELOCs and HELOANs tailored to retirees. The collaboration is designed to capture a larger share of the U.S. home‑equity market, which is expanding as more than 10,000 Americans reach retirement age each day. FOA’s Q3 2025 earnings—an EPS of $1.33 beating estimates and a GAAP net loss of $29 million—highlight the company’s focus on growth while managing cost pressures.
The expansion aligns with Blue Owl’s strategy of deepening its footprint in high‑growth consumer‑credit segments. In Q3 2025, Blue Owl reported revenue of $687 million, up 4% from the prior quarter, driven by strong demand in its credit and real‑assets platforms. The partnership is expected to generate incremental fee revenue for Blue Owl, with management projecting a 29% year‑over‑year increase in management fees and a 19% rise in fee‑related earnings. FOA’s CEO, Graham Fleming, said the deal “creates a platform of scale and innovation to better serve one of the fastest‑growing demographics in the United States.” Blue Owl’s David Aidi added that the partnership “provides capital and strategic alignment to build products at scale.”
While market reaction data is not yet available, the partnership signals a significant shift in both companies’ strategic trajectories. Blue Owl’s permanent‑capital exposure to the consumer‑credit market is expected to grow, and FOA’s expanded product line positions it to capture a larger share of the aging population’s home‑equity needs. The $50 million equity stake also gives Blue Owl a direct voice in FOA’s governance, potentially influencing product development and risk management practices.
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