Blue Owl Capital announced on Tuesday the signing of a definitive agreement to acquire the business of alternative credit manager Atalaya Capital Management LP (“Atalaya”) for $450 million, according to a statement accessed by Funds Society.
The acquisition is expected to close in the second half of 2024, subject to regulatory conditions, and is anticipated to be accretive to Blue Owl in 2025.
The firm acquired by Blue Owl primarily focuses on asset-based credit investments in consumer and commercial financing, corporate and real estate assets, and manages over $10 billion in AUM as of June 30, 2024, the firm’s information adds.
Atalaya, founded in 2006 by Ivan Zinn, has deployed over $17 billion of capital, with nearly 70% of transaction flow coming directly from asset owners, originators, or joint venture partners.
Zinn, current founding partner and Chief Investment Officer of Atalaya, will join Blue Owl as Head of Alternative Credit and will report to Craig Packer, Head of Credit and Co-President of Blue Owl.
Atalaya is headquartered 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 continue managing Atalaya’s existing funds.
The purchase price at the closing of the transaction, $450 million, consists of $350 million in Blue Owl shares and $100 million in cash. Additionally, there is the potential to earn up to $350 million in benefits in the form of shares, subject to certain adjustments and the achievement of future revenue targets, the statement explains.
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 serving as legal advisor to Blue Owl.
Mizuho, RBC, and Truist are acting as co-advisors to Atalaya. Cravath, Swaine & Moore LLP is serving as legal advisor to Atalaya.
