US-based alternative asset manager Blue Owl Capital has agreed to acquire alternative investment advisory firm Atalaya Capital Management’s business, for $450m.
The purchase price of $450m includes $350m of Blue Owl equity and $100m in cash.
In addition, there is potential for up to $350m of earnout consideration in the form of equity, subject to certain adjustments and achievement of future revenue targets.
As part of the transaction, Atalaya’s chief investment officer Ivan Zinn will be appointed as Blue Owl’s alternative credit unit head, reporting to its co-president and credit head Craig Packer.
The acquisition is expected to be completed in the second half of this year, subject to certain customary closing conditions. It is expected to be modestly accretive to Blue Owl in 2025.
Upon closing, Atalaya’s employees will be transitioned to Blue Owl and will continue to manage existing Atalaya funds.
Blue Owl co-CEOs Doug Ostrover and Marc Lipschultz said: “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.”
Established in 2006, Atalaya primarily focuses on asset-based credit investments across consumer, commercial finance, corporate and real estate assets.
Based in New York, the company has over $10bn assets under management (AUM) as of 30 June 2024 and has around 115 employees, including over 50 investment professionals.
Atalaya has deployed over $17bn of capital with nearly 70% of deal flow sourced directly through asset owners, originators, or joint venture partners.
Citigroup, MUFG Bank, SMBC and Wells Fargo served as co-financial advisors, and Kirkland & Ellis as legal advisor to Blue Owl, on this acquisition.
Also, Mizuho, RBC and Truist served as co-advisors, and Cravath, Swaine & Moore as legal advisor to Atalaya.
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 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.”
