Blue Owl Gathers $1 Billion After Pitching an Unusual Sweetener

Blue Owl Capital Inc. gathered at least $1 billion of commitments after pitching an unorthodox incentive to anchor investors in a strategy backing asset-shuffling private equity deals.

The alternative asset manager had been looking for at least $750 million in early commitments from institutions such as endowments and pensions for its first Strategic Equity fund, according to people with knowledge of the matter. That strategy invests in continuation funds, which buy assets from existing vehicles to cash out early investors and extend the holding period.

Blue Owl is offering the early backers equity stakes in the institutional fund and in ...