- The creation of alternative credit management business with an 18-year history will be added 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, announced today that it has entered into a definitive agreement to acquire the business of alternative credit manager Atalaya Capital Management LP (“Atalaya”) for 450 million dollars. The 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 commercial finance, corporate and real estate assets, and managed on 10 billion dollars of AUM since June 30, 2024. Since the beginning, Atalaya has been placed on 17 billion dollars of 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 Zinn, who serves as Founding Partner and Chief Investment Officer. Mr. Zinn will join Blue Owl as Head of Alternative Credit and report to them Craig Packer, Chief Credit Officer and Co-President of Blue Owl. Atalaya is located in New York and has approximately 115 employees, including over 50 investment professionals. After the acquisition closes, most of Atalaya’s employees are expected to join Blue Owl and will continue to manage Atalaya’s existing funds.
Closing purchase price of 450 million dollars is composed of 350 million dollars of Blue Owl capital and 100 million dollars of cash. In addition, there is the potential to 350 million dollars of profit consideration in the form of capital, subject to certain adjustments and the achievement of future earnings targets.
Blue Owl Co-CEOs Doug Ostrover AND Marc Lipschultz said: “The acquisition of Atalaya adds close and scalable alternative lending 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 strong business with expertise highly differentiated leveraged and underwriting and have demonstrated a strong track record across market cycles Atalaya significantly expands Blue Owl’s alternative credit offerings and provides a stronger set of financing solutions to our stakeholders.
Ivan Zinn said, “We see Blue Owl as an ideal strategic partner to support the next phase of our growth. We are proud of the incredible track record we have built over nearly two decades and are extremely grateful to our investors, team and partners who made this journey It is possible that we look forward to continuing to move forward on the leading edge of alternative credit as part of Blue Owl.
Citigroup, MUFG Bank, Ltd., SMBC and Wells Fargo are acting as co-financing advisors to Blue Owl in connection with the acquisition. Kirkland & Ellis LLP is acting as legal counsel to Blue Owl.
Mizuho, RBC and Truist are acting as co-advisors to Atalaya. Cravath, Swaine & Moore LLP is acting as legal counsel to Atalaya.
A supplemental investor presentation regarding the acquisition is available on the shareholder section of Blue Owl’s website at www.blueowl.com.
About Blue Owl
Blue Owl (NYSE: OWL ) is a leading asset manager that is redefining alternatives.
With more 174 billion dollars in assets under management as of date March 31, 2024, we invest in three multi-strategy platforms: Credit, GP Strategic Capital and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private equity solutions to drive long-term growth and provide institutional investors, individual investors and insurance companies with differentiated alternative investment opportunities aimed at delivering performance strong, risk-adjusted returns and capital preservation.
Together with over 725 experienced professionals globally, Blue Owl brings the vision and discipline to create the extraordinary. To learn more, visit www.blueowl.com.
About Atalaya Capital Management
Atalaya Capital Management is a privately held, SEC-registered alternative asset manager that primarily focuses on making private loans and special situations investments in three primary asset classes – specialty financials, real estate and corporates. Founded in 2006, Atalaya is headquartered in New York City and there are more than 10 billion dollars in assets under management and has decided on 17 billion dollars over 600 investments.
Forward-Looking Statements
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Securities and Exchange Commission Act of 1995. When used in this statement to press, the words “estimates”, “projected”, “”expects”, “anticipates”, “anticipates”, “plans”, “intends”, “believes”, “requires”, “may”, “will”, “will” , “should”, “future”, “propose”, “objective”, “goal”, “objective”, “view” and variations of these words or similar expressions (or negative versions of such words or expressions) have for the purpose of identifying forward-looking statements. Any such forward-looking statement is made in accordance with the securities provisions available under applicable securities laws and speaks only as of the date 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 results or actual results. differ materially from those discussed in the forward-looking statements.
Important factors, among others, that could affect actual results or results include the inability to recognize the expected benefits of strategic acquisitions; costs associated with purchases; the inability to maintain the listing of Blue Owl shares on the New York Stock Exchange; Blue Owl’s ability to manage growth; Blue Owl’s ability to execute its business plan and meet its forecasts; 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.
Investor contact
Ann Dai
Head of Investor Relations
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Media contact
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Director, Corporate Communications and Government Affairs
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SOURCE Blue Owl Capital