Blue Owl and Five Point Holdings have launched a joint land banking investment partnership under the Hearthstone Residential platform to target master-planned residential land acquisitions and development opportunities in California.

The vehicle will focus on acquiring raw and entitled land parcels suitable for single-family and multifamily residential projects, leveraging Hearthstone’s existing pipeline and Blue Owl’s alternative investment expertise to create value through strategic site assembly and entitlement.

The partnership employs Blue Owl’s managed funds in a commingled structure, with capital commitments from institutional investors alongside sponsor commitments from both Blue Owl and Five Point, although total capitalization has not been disclosed.

This collaboration expands Blue Owl’s fee-related earnings base by introducing real estate development management fees and potential carried interest, further diversifying its alternatives platform beyond credit and traditional real assets strategies.