A formal agreement has been signed by alternative asset manager Blue Owl Capital to purchase the alternative credit manager Atalaya Capital Management (“Atalaya”) for $450m.
The transaction is scheduled to occur in the second half of 2024, subject to usual closing conditions, and will be moderately accretive to Blue Owl in 2025.
Go deeper with GlobalData
Atalaya’s primary concentration is asset-based credit investments in consumer and commercial financing, corporate and real estate assets, with approximately $10bn in AUM as of 30 June 2024.
Since its establishment, Atalaya has deployed more than $17bn in financing, with almost 70% of transaction flow coming directly from asset owners, originators, or joint venture partners.
Ivan Zinn, the founding partner, and chief investment officer of Atalaya, established the company in 2006. He will join Blue Owl as head of alternative credit, reporting to Craig Packer, head of credit and co-president of Blue Owl.
Atalaya is situated in New York and employs roughly 115 people, including over 50 investment professionals.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFollowing the acquisition, the majority of Atalaya’s employees will relocate to Blue Owl and continue to handle existing Atalaya funds.
The closing transaction price of $450m includes $350m in Blue Owl equity and $100m in cash.
Furthermore, there is the possibility for up to $350m in equity earnout consideration, subject to certain modifications and meeting future sales targets.
Blue Owl’s Co-CEOs Doug Ostrover and Marc Lipschultz stated: “The acquisition of Atalaya adds adjacent and scaled alternative credit capabilities that complement Blue Owl’s leading position in direct lending. Atalaya was an early pioneer in private asset-based finance. They have created a robust business with highly differentiated sourcing and underwriting expertise and have demonstrated a strong track record across market cycles. Atalaya significantly expands Blue Owl’s alternative credit offerings and delivers a more robust suite of financing solutions to our stakeholders.”
Zinn added, “We view Blue Owl as an ideal strategic partner to support the next stage of our growth. We are proud of the exceptional track record we built over nearly two decades and are incredibly grateful to our investors, team and partners who made this journey possible. We look forward to continuing to drive forward at the leading edge of alternative credit as part of Blue Owl.”
In relation to the transaction, Wells Fargo, Citigroup, SMBC, and MUFG Bank, Ltd. are serving as co-financial advisers to Blue Owl. Blue Owl’s legal counsel is Kirkland & Ellis LLP.
For Atalaya, Mizuho, RBC, and Truist are acting as co-advisers. Atalaya is being advised by Cravath, Swaine & Moore LLP in legal matters.
