Blue Owl buys Atalaya for $450m
Alternative asset manager Blue Owl has bought Atalaya Capital Management, in a $450m (£347m) deal that it says will significantly expand its alternative credit and asset-based finance capabilities.
New York-based Atalya manages over $10bn of assets, focused primarily on asset-based credit investments across consumer and commercial finance, corporate and real estate.
The transaction value is comprised of $350m of Blue Owl equity and $100m of cash.
There is also the potential for up to $350m of earnout consideration in the form of equity, subject to meeting future revenue targets.
Read more: Blue Owl expands institutional team in Europe
The deal – which is expected to be “modestly accretive” to Blue Owl next year – is expected to close in the second half of 2024.
Atalaya’s founding partner and chief investment officer Ivan Zinn will join Blue Owl as head of alternative credit, reporting to Craig Packer, head of credit and co-president of Blue Owl.
Most of Atalya’s 115 employees are expected to join Blue Owl after the deal has closed, and will continue to manage existing Atalaya funds.
“The acquisition of Atalaya adds adjacent and scaled alternative credit capabilities that complement Blue Owl’s leading position in direct lending,” said Blue Owl’s co-chief executives Doug Ostrover and Marc Lipschultz.
“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 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.”
Blue Owl has been on a buying spree this year. In April, it expanded into real estate finance through its acquisition of Prima Capital Advisors and grew its insurance solutions by acquiring Kuvare Asset Management.
