Blue Owl Financing of Ping Identity

In the fall of 2022, Blue Owl Capital's investment committee evaluated a potential investment in the technology sector. The proposed transaction centered on Ping Identity Corporation (“Ping”), a fast-growing identity access management (IAM) software company that was being taken private by Thoma Bravo. Blue Owl was invited to play a leading role in an $875 million debt financing package to support the acquisition. Ping’s strong fundamentals made the opportunity appealing: the company operated in a high-growth market, generated the majority of its revenues from subscription-based services, and demonstrated significant growth in its product offerings and customer base. However, despite these strengths, Ping had yet to generate meaningful cash flow. This presented Blue Owl with a high-risk, high-reward scenario. The critical question for the team was whether Blue Owl should proceed with the transaction despite the risks, and whether the proposed deal structure offered adequate protection against potential downsides. By examining the specifics of Ping Identity’s debt financing, this case provides a platform to explore private debt lending in the technology sector, highlighting the nuances of lending in this space and the elements required to compete effectively.