(Bloomberg) -- Blue Owl Capital Inc.’s arm that invests in other alternative-asset managers is nearing a deal to acquire a minority stake in health-care-focused private equity firm Linden Capital Partners, according to people with knowledge of the matter.

The firm is set to back Linden through its flagship GP stakes fund as well as its first vehicle dedicated to mid-size managers, said one of the people, all of whom asked not to be identified to discuss confidential information. 

Read More: Blue Owl Lures Abu Dhabi’s Lunate for Middle-Market Wagers

Representatives for Blue Owl and Linden declined to comment. 

Alternative-asset managers have increasingly pursued minority stake sales for liquidity, with founders often using proceeds to back new strategies or invest in new funds, among other options.

Read More: Linden Capital Partners Is Said to Weigh Sale of Minority Stake

Chicago-based Linden has backed businesses including Alcresta Therapeutics, which aims to commercialize products for people with gastrointestinal disorders and rare diseases; Smile Doctors, a dental services platform; ERG, which operates clinical research sites; and Aspen Surgical, a maker of personal protective equipment and other supplies. 

The firm, whose founders include Tony Davis and Brian Miller, has raised $7 billion in commitments, a figure that has been “augmented capital provided by our limited partners and others for larger transactions,” its website shows. 

Linden’s $3 billion fifth buyout fund counts New York State Teachers’ Retirement System, Texas County & District Retirement System and Sacramento County Employees’ Retirement System among its investors, according to data compiled by Bloomberg.

(Adds firm’s decline to comment in third paragraph.)

©2024 Bloomberg L.P.