April 3 (Reuters) - Alternative asset manager Blue Owl

Capital said on Wednesday it would buy Kuvare Asset

Management for $750 million in a cash-and-stock deal,

underscoring the increasing demand for life insurance assets

from investment firms.

KAM manages assets for insurers, including Kuvare UK

Holdings, which sells life insurance, annuities and reinsurance

products. The deal will add up to $20 billion to Blue Owl's $165

billion of assets under management.

In the last several months, life insurers have been joining

hands with private equity and investment companies. In January,

KKR acquired the stake it did not already own in Global

Atlantic for $2.7 billion.

The premiums that life insurers collect from their

policyholders can be a lucrative source of long-term capital for

investment companies hunting for more assets to manage as the

payouts on such policies are typically not due for years.

Blue Owl's shares rose 7% before the bell. The company said

it will finance the deal with $325 million of cash and $425

million of its shares.

The value of the deal could be bumped up by $250 million if

certain revenue targets are met, Blue Owl said. It is also

buying $250 million of preferred shares in Kuvare UK.

Blue Owl said the acquisition is expected to close in the

second or third quarter of 2024.

Ardea Partners and PJT Partners ( PJT ) were the lead

financial advisers to Blue Owl. Kuvare UK was advised by Royal

Bank of Canada ( RY ), while J.P. Morgan Securities was

the lead financial adviser to KAM.

(Reporting by Niket Nishant in Bengaluru; Editing by Arun

Koyyur)