But instead, we’d say, look, we can, for what turned out to be really de minimis consideration, acquire these contracts, and instead of building them, in that case, buy them, and that actually is another $1.6 billion of fee-paying AUM, the jointer system. Now, again, I don’t want to get over focused on AUM, but I do want to point out that in our system, we’re constantly going to look at what is the best way to get those assets, the most effective way to do it, that is accretive for the continued growth and dividends of our business. So, Par-Four is a great example of substituting, I would say, an acquisition for very little investment in place of an organic build of the very same CLOs that we could have undertaken. So, that’s there.
Will we continue to add to that? Sure, opportunistically, we’re happy to add to it. CLOs are a much lower margin business. Our specialty, without question, is in the world of private capital solutions, so you should not expect us to become a large liquid manager. That’s a very different, lower margin business. Our products are much more distinctive in the world of privates. We stay focused on what we’re really, really good at. But, yes, it’s an area we can continue to add to. It’s not an imperative for us to become particularly large in CLOs.
Brennan Hawken: Thanks. And the impact of revenue for the quarter, what we should expect for 4Q?
Alan Kirshenbaum: Brennan, we haven’t disclosed that.
Brennan Hawken: Okay. Then one last one, more of a sort of housekeeping item. Now that members of senior management are going to be paid in all stock, should we expect that adjustment, the equity-based comp adjustment to sort of ramp a little bit here — from here? What kind of impact should we expect there?
Alan Kirshenbaum: Sure. So all of our senior members of the management team, Doug, Marc, Michael, Marc Zahr, others, have been taking stock comp entirely for the last two-plus years, almost since we’ve been a public company. So that continues its tremendous alignment with our shareholders and you shouldn’t expect a meaningful increase due to that.
Brennan Hawken: Excellent. Thanks for taking my questions.
Alan Kirshenbaum: Thank you, Brennan.
Operator: Thank you. Our next question comes from Kenneth Worthington from JPMorgan. Please go ahead with your question.
Alex Bernstein: Hi. This is Alex on for Ken. Thank you so much for taking our questions. Two questions, please. The first one, can you double-click on the real estate segment again? You posted positive returns, which is definitely a nice difference versus what we’ve seen in some other parts of the market. Can you please speak about what’s sort of driving that and maybe some of the differentiation that you’re seeing relative to other players? And then the second question is, I notice that just about the Cowen HealthCare acquisition, if you could talk about that one as well, that would be great? Thanks so much.
Marc Lipschultz: Great. Yes. I’m happy to comment on both. Let me start with the Cowen HealthCare question. So Cowen HealthCare, another great example of being able, by virtue of our platform to grow both capability and add to our earnings simultaneously. As Doug commented, healthcare has been a very, very significant focus for us. We’ve deployed significant capital in healthcare lending, royalties, structured solutions and now, by virtue of adding the Cowen business, are adding in even greater depth on the pharma side. And in the pharma side of the business, of course, there’s technical skills involved. There are knowledge that the Cowen HealthCare team has in spades. They’ve made investments in 60 different companies over time, pharma-centric companies.
So by adding that capability, we now have added to a full spectrum of abilities within healthcare that will allow us to really take that business forward in life sciences over the next 20 years. In our humble view, it’s going to be an area of enormous opportunity, much like info services was the last 20 years. Probably not a coincidence that we’ve been able to build the market-leading position in software lending and looking ahead to see an opportunity in healthcare with some similarities. So that is kind of on a chase for strategic reasons. But done the way we have, by adding Blue Owl and making Blue Owl a platform that people want to join, we have a team that said, look, this is where we want to bring our platform. The consideration was very, very minor for that business, because it was really about the team coming and finding a home.
So what we have managed to do in that case is add to our capabilities terrific people and add $1 billion of assets and add earnings as a result. So it wasn’t an or. We didn’t have to go pay some huge price in order to get admission. Quite the opposite. We have a great team join us, get a team and assets and earnings. So that was really what’s behind the Cowen business. Very excited about Kevin and his team. With regard to real estate. So on the real estate side, we’ve been able to continue to post attractive returns, because we have a very, very distinctive proposition. We don’t do in real estate what other people do. We don’t own things that have to be released. We don’t own things that have vacancies. We don’t own things where this inflationary environment and the expenses flow through to us.
We have a vacancy. Now you also have the expenses. We have triple net leases, the expenses, the inflation that has obviously been occurring in the world. That’s the responsibility of our tenant. Our tenants sign up with us for 20 years at a time. If you look at, for example, in Q3, just to give you a sense of the power of this model, because again, we offer a value proposition to our investors. We partner with the Walgreens of the world. We’re not just out in the market buying from brokers, like, I’ve heard before, I can recall being in a setting where one of the leaders, one of the biggest brokers in the country said, we never sell anything to Blue Owl, because they originate at rates way higher, way more attractive than we sell at and you can see that in our practice.
So if you look during Q3, for example, we purchased 71 different properties for over $1 billion at an average cap rate of 7.9% with a 16-year average lease. I don’t mean to just spew numbers, but just think about that for a minute. Roughly 8% cap rate, 16 per year average lease, triple net. So we are not taking risks. In fact, we’ve made basically the equivalent of loans to mostly IG companies and we own real estate as a backup in the case that we needed it. At the same time, during the same period, we sold 16 properties for over $0.25 billion, $267 million to be precise, at an average cap rate of 5.4%. So we’re buying at 8%, we’re selling to 5.4%, generating on average a 31% net IRR and a nearly 2-time net equity multiple. So why do I say that?
What I’m saying is our business and the role we play as a strategic partner to large corporates allows them to conduct what amounts to wholesale transactions, to get dollars that matter to them. Selling a store doesn’t do any good. Selling a warehouse has limited impact. Having a true partnership with someone that has billions of dollars to offer them, that has value. So we can buy it wholesale. And then at times, we will go ahead and sell those properties and we consistently have at prices meaningfully better than the prices we acquire at. So you’ll hear even in a very disrupted market, rising rates, real estate is disrupted. I mean, not that it’s hard to describe a worse environment for real estate, but this is a pretty choppy one.
