Five Point Holdings, LLC (NYSE: FPH) entered into a new residential land‑banking partnership with Blue Owl Capital Inc. on February 10, 2026. The deal is executed through Five Point’s Hearthstone Residential Holdings platform and is designed to support the acquisition of residential homesites and land assets in high‑quality U.S. housing markets.
Under the agreement, Five Point will issue up to 1,500,000 Class A common‑share warrants to Blue Owl. The warrants have an exercise price of $7.00 per share and vest only when cumulative capital contribution thresholds are met. If fully exercised, the warrants would result in approximately 1% dilution of Five Point’s fully‑diluted share count, but no immediate dilution occurs at the time of issuance.
The partnership marks a key step in Five Point’s transition from a California‑centric land developer to a national, asset‑light capital‑solutions platform. By leveraging Blue Owl’s institutional resources, Five Point aims to expand Hearthstone’s reach beyond its existing footprint and accelerate fee generation from third‑party capital. The move is intended to strengthen the company’s competitive position and support its long‑term growth strategy.
Five Point acquired the Hearthstone platform in 2025 as part of its strategy to grow fee‑generating businesses. Blue Owl had over $307 billion in assets under management as of December 31, 2025, and on February 11, 2026 announced the final close of its Blue Owl Strategic Equity strategy with more than $3 billion in commitments, underscoring the firm’s active deployment of capital to partner platforms.
Dan Hedigan, President and CEO of Five Point, said the partnership “positions Hearthstone to pursue a broader set of growth opportunities and further solidify its role as a leading residential land‑banking platform.” Matt Tier, Managing Director at Blue Owl, added that “Hearthstone’s underwriting expertise, strong industry reputation, and decades‑long track record make them an ideal partner for Blue Owl.”
The warrants’ potential dilution is limited to about 1% and is contingent on significant capital contributions, meaning existing shareholders will not see immediate dilution. The partnership provides Hearthstone with a scalable vehicle for growth, aligning Blue Owl’s long‑term participation with the platform’s expansion and preserving Five Point’s balance‑sheet light structure while expanding fee‑generating opportunities across the U.S. housing market.
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