(Bloomberg) — Blue Owl Capital Inc.’s Dyal Capital has agreed to acquire a minority stake in growth-equity investment firm Lead Edge Capital, according to people with knowledge of the matter.
The transaction is set to close in coming months, said one of the people, all of whom requested anonymity. Terms couldn’t immediately be learned.
Representatives for Blue Owl and Lead Edge declined to comment.
Lead Edge, led by founding partner Mitchell Green in April said it raised $1.95 billion for a fund dedicated to backing both private and public software, internet, consumer, and tech-enabled service companies. At the time, he said valuations had “gotten ahead of themselves,” and the firm was ready to seize opportunities that may arise in a downturn.
Read more: Lead Edge Capital Raises $1.95 Billion for Growth-Equity Bets
The firm, which has offices in New York and Santa Barbara, California, backed companies including Bumble Inc., Toast Inc. Wise Plc and FIGS Inc. before their public listings. It counts unicorns including Talkdesk, Guild Education and Workhuman in its portfolio, its website shows.
Minority stake sales, which provide firm founders with liquidity, have proliferated in recent years. Last year, Great Hill Partners and Arsenal Capital Partners, which both make growth-equity bets, sold stakes to Blackstone Inc. and Petershill Partners Plc, respectively.
Dyal has backed other firms that make growth-equity bets including Iconiq Capital and venture firm New Enterprise Associates. It is in the process of raising $9 billion for a fifth fund for stakes investments.
“We’ll see exactly where we land that plane, certainly confident in that number and we’ll see if we go above,” Blue Owl co-President Michael Rees said during a May earnings call. The target size of its sixth Dyal fund hasn’t yet been set, he said.
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