Soros- and Dell-backed fund raises almost $1bn to lend to SMEs
Owl Rock Capital has raised almost $1bn to lend to SMEs.The credit fund, which is backed by investors including George Soros, Michael Dell, and Alibaba Group co-founder Joseph Tsai, plans to extend loans from $20m to $250m with maturities ranging between three and ten years, according to a regulatory filing. Owl Rock joins other alternative lenders such as Apollo Global Management and Oaktree Capital Group that plan to help fill the gap in the market created as banks retreat from this space.

Marc Lipschultz, Owl Rock Capital Partners cofounder and former global head of energy and infrastructure at KKR. Carlo Allegri/ Reuters

Owl Rock Capital Partners, a credit fund started by private equity veterans Marc Lipschultz and Doug Ostrover, has raised almost $1 billion.

The firm aims to lend to small and medium businesses through Owl Rock Capital Corp., and has attracted investors including George Soros, Michael Dell, and Alibaba Group cofounder Joseph Tsai, Bloomberg first reported.

Big banks are retreating from the lending space amid tougher regulations in the wake of the financial crisis, and alternative lenders like Owl Rock, Apollo Global Management, and Oaktree Capital Group are eager to fill the void.

In an April filing, Owl Rock said there are nearly 200,000 middle-market companies in need of "access ... to refinance existing debt, support growth and finance acquisitions."

Owl Rock's credit investments will range from $20 million to $250 million with maturities between three and 10 years, the filing shows.

The firm's dealmaking team features strong talents from Wall Street banks and alternative-investment giants. Lipschultz is a former head of energy and infrastructure investing at KKR, while Ostrover is an ex-Blackstone Group credit executive. Craig Packer, a former senior leveraged-finance banker at Goldman Sachs, joined as a cofounder in February and became CEO of Owl Rock Capital Corp.