- An established alternative credit management company with 18 years of experience will add more 10 billion dollars in assets under management.
NEW YORK, July 16, 2024 /PRNewswire/ — Blue Owl Capital Inc. (“Blue Owl”) (NYSE: OWL), a leading alternative asset manager, today announced that it has entered into a definitive agreement to acquire the business of alternative credit manager Atalaya Capital Management LP (“Atalaya”) for $450 millionThe acquisition is expected to close in the second half of 2024, subject to customary closing conditions, and is expected to be modestly accretive to Blue Owl in 2025.
Atalaya focuses primarily on asset-based credit investments in consumer and corporate finance, corporate assets and real estate, and manages more than 10 billion dollars from AUM to June 30, 2024Since its creation, Atalaya has deployed more than $17 billion capital with nearly 70 percent of deal flow coming directly from asset owners, originators or joint venture partners. Atalaya was founded in 2006 by Ivan Zinnwho serves as Founding Partner and Chief Investment Officer. Mr. Zinn will join Blue Owl as Head of Alternative Credit and will report to Craig PackerCredit Officer and Co-President of Blue Owl. Atalaya is based in new York Atalaya is an investment fund management firm with approximately 115 employees, including more than 50 investment professionals. Upon closing of the acquisition, most of Atalaya’s employees are expected to join Blue Owl and continue to manage existing Atalaya funds.
The closing purchase price of $450 million is made of $350 million Blue Owl’s equity and $100 million cash. In addition, there is a potential of up to $350 million of an earn-out consideration in the form of equity, subject to certain adjustments and the achievement of future revenue targets.
Blue Owl Co-CEOs Doug Ostrover And Marc Lipschultz said: “The acquisition of Atalaya adds adjacent, large-scale alternative credit capabilities that complement Blue Owl’s leadership position in direct lending. Atalaya was an early pioneer in asset-based private finance. They have built a robust business with highly differentiated sourcing and underwriting expertise and have demonstrated a strong track record across all market cycles. Atalaya significantly expands Blue Owl’s alternative credit offerings and provides a more robust suite of financing solutions to our stakeholders.”
Ivan Zinn said: “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 have built over nearly two decades and are incredibly grateful to our investors, team and partners who have made this journey possible. We look forward to continuing to lead the way in alternative credit as part of Blue Owl.”
Citigroup, MUFG Bank, Ltd., SMBC and Wells Fargo are acting as co-financial advisors to Blue Owl in connection with the acquisition. Kirkland & Ellis LLP is acting as legal advisor to Blue Owl.
Mizuho, RBC and Truist are acting as co-counsel to Atalaya. Cravath, Swaine & Moore LLP is acting as legal advisor to Atalaya.
A supplemental investor presentation regarding the acquisition is available in the shareholder section of Blue Owl’s website at www.blueowl.com.
About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset manager redefining alternatives.
With over $174 billion in assets under management at March 31, 2024We invest across three multi-strategy platforms: Credit, GP Strategic Capital and Real Estate. With a strong permanent capital base, we provide companies with private capital solutions to drive long-term growth and offer institutional investors, individual investors and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns and capital preservation.
With over 725 experienced professionals worldwide, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.
About Atalaya Capital Management
Atalaya Capital Management is a privately held, SEC-registered alternative asset manager focused primarily on private credit and special situations investments across three principal asset classes: specialty finance, real estate and corporates. Founded in 2006, Atalaya is headquartered in New York City and has more than 10 billion dollars in assets under management and has deployed more than $17 billion through more than 600 investments.
Forward-Looking Statements
Certain statements made in this press release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimate,” “project,” “expect,” “anticipate,” “forecast,” “plan,” “intend,” “believe,” “seek,” “may,” “will,” “should,” “future,” “propose,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of these words or expressions) are intended to identify forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date they are made. Blue Owl undertakes no obligation to update or revise any such forward-looking statements, except as required by law.
These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond Blue Owl’s control, that could cause actual results to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results include the failure to recognize the anticipated benefits of strategic acquisitions; acquisition-related costs; the failure to maintain the listing of Blue Owl’s shares on the New York Stock Exchange; Blue Owl’s ability to manage growth; Blue Owl’s ability to execute its business plan and achieve its projections; potential litigation involving Blue Owl; changes in applicable laws or regulations; and the possibility that Blue Owl may be adversely affected by other economic, business, geopolitical and competitive factors.
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SOURCE Blue Owl Capital
