Spotlight on Tracy Jones, Vice President, Institutional Capital, Blue Owl Capital
Global Thought Leader Spotlight
Tracy Jones, Vice President, Institutional Capital, Blue Owl Capital
In my role as a Vice President at Blue Owl Capital, I am responsible for representing Blue Owl’s unique suite of private markets strategies to Australian investors. My focus is on deepening institutional relationships and driving strategic growth as we continue to expand our presence across Australasia.
Asset-Based Finance risks and opportunities
Asset-Based Finance (“ABF”) has experienced significant growth in recent years and presents a compelling opportunity for Australian investors seeking attractive, risk-adjusted returns within their fixed income allocations.
As traditional banks retreat from core lending activities, institutional investors are increasingly stepping in to fill the void. This shift is driving innovation, capital formation, and the emergence of scalable opportunities across a wide range of ABF sectors. For early movers, this presents a chance to potentially access premium yields and portfolio diversification before broader market participation compresses returns.
ABF strategies are backed by diverse pools of real and financial assets, ranging from equipment leases and receivables to royalties and consumer loans. Effectively valuing and managing these assets requires deep domain expertise, particularly in stressed environments where collateral recovery can be complex.
Partnering with experienced managers and implementing robust risk frameworks is critical to helping mitigate operational and valuation risks.
As private capital increasingly replaces traditional bank lending and public market solutions, a growing debate has emerged around systemic risk and the need for enhanced regulatory oversight. Unlike banks, private lenders operate outside of formal capital adequacy regimes, raising concerns around transparency, liquidity, and resilience during periods of market stress. Sophisticated investors should ensure their ABF exposures are well-diversified, thoughtfully structured, and managed by firms with strong governance, risk controls, and a proven track record.
Implications for sophisticated investors
We estimate the addressable market for ABF to be approximately $11 trillion, with private fund capital penetration currently sized at just ~4% of that total, leaving meaningful room for growth.¹
For sophisticated, long-term investors, this presents a compelling opportunity to position portfolios to capture structural growth while managing risk. With the right partner, ABF can serve as a core allocation, offering:
Scalability: A large and growing market that supports meaningful capital deployment.
Diversification: Broad exposure across sectors of the real economy, often with low correlation to traditional public and private markets.
Income and Stability: Contractual cash flows generated by diversified collateral pools, often with thousands of underlying assets, may help provide consistent income and downside protection.
Structural Protections: ABF strategies often benefit from highly structured investments that feature the use of bankruptcy remote special purpose vehicles, cash controls, covenants, and performance triggers to help manage risk.
To capitalise on these dynamics, investors should consider:
Allocating early to gain exposure before broader market participation compresses returns.
Partnering with experienced managers who can navigate the complexity of sourcing, structuring, and managing diverse asset pools.
Prioritising transparency and risk management, especially in areas like collateral valuation, liquidity, and regulatory oversight.
Tracy will be presenting at Global Investment Institute’s upcoming Family Office Investment Forum, taking place tomorrow on Tuesday, 9 September 2025 in Melbourne CBD, Victoria. To register your interest in attending, click here or for more information email zlatan@globalii.com.au.
¹With Intelligence, Private Debt Investor, Preqin, NAIC, Morgan Stanley Into the Great Unknown November 19, 2023, Private Equity International: Sizing the NAV finance market December 1, 2023, company websites, MSI research Q4 2023
Tracy Jones, Vice President, Institutional Capital, Blue Owl Capital
Tracy is a Vice President, Institutional Capital at Blue Owl Capital. She has more than 15 years in the investment management industry with experience across global asset managers and private equity firms. Recently joining Blue Owl, a leading global alternatives manager with US $280Bn AUM, her role is focused on business development and client management for Australian institutional investors.
Before joining Blue Owl, Tracy was a Director at Pacific Equity Partners (PEP), where she was the Head of Institutional Partners and responsible for fundraising and managing the investor relations team across PEP’s multi strategy platform. Prior to PEP, Tracy was the Head of Client Services for Invesco Australia, responsible for the client experience of institutional investors. She has also previously held distribution roles at NAB Asset Management and BlackRock in NYC.
Tracy received a BCom in Finance and Management from the University of Wollongong and a Graduate Certificate in Applied Finance from Kaplan Higher Education.
Global Investment Institute is Australia’s leading provider of conferences for capital allocators.
We connect institutional investors, family office and private wealth investment leaders with peers and global investment experts to share knowledge and thought leadership in a private, collegiate and discussion-focussed setting, conducted under Chatham House Rule.
Our upcoming events include:
If you have enjoyed reading this article, please subscribe to GII Insights, delivered monthly, direct to your inbox and it is FREE!
Disclaimer
The views and opinions expressed in this publication are those of the individual contributors and their respective organisations at the time of publishing. They do not necessarily reflect those of Global Investment Institute (GII). These views are not intended to be, and should not be construed as, investment advice or research. They are subject to change without notice, and no representation is made as to their ongoing accuracy or reliability. Forecasts, forward-looking statements, or opinions are inherently uncertain and based on assumptions, risks, and external factors which may change over time. The individuals interviewed have no obligation to update any statements made.
International investments carry additional risks, including potential loss of capital, currency fluctuations, differences in accounting standards, and economic or political instability.
All information contained in this publication is general in nature and does not take into account the financial objectives, situation, or needs of any individual or organisation. It should not be used as the sole basis for making investment decisions. GII strongly recommends seeking independent, fee-for-service financial advice before acting on any information contained herein.
Contributors, guest writers or interviewees may hold personal or professional financial interests in the investments discussed. The editorial team has assessed that these interests have not influenced the content of this publication.
All content featured in this publication is protected by copyright. No part may be reproduced, distributed, or transmitted in any form without prior written permission from the Global Investment Institute.