- Established alternative credit management business with an
18-year track record will add over $10
billion 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 it has entered into a definitive agreement
to acquire the business of alternative credit manager Atalaya
Capital Management LP ("Atalaya") for $450
million. 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
across consumer and commercial finance, corporate and real estate
assets, and managed over $10 billion
of AUM as of June 30, 2024. Since
inception, Atalaya has deployed over $17
billion of capital with nearly 70 percent of deal flow
sourced directly through 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 will report to Craig
Packer, Head of Credit and Co-President of Blue Owl. Atalaya
is based in New York and has
approximately 115 employees, including over 50 investment
professionals. Upon closing of the acquisition, most of Atalaya's
employees are expected to join Blue Owl and will continue to manage
existing Atalaya funds.
The closing purchase price of $450
million is comprised of $350
million of Blue Owl equity and $100
million of cash. In addition, there is potential for up to
$350 million of earnout consideration
in the form of equity, subject to certain adjustments and
achievement of future revenue targets.
Blue Owl's 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."
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."
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-advisors to Atalaya.
Cravath, Swaine & Moore LLP is acting as legal advisor to
Atalaya.
A supplemental investor presentation with respect to the
acquisition is available on the shareholders 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 over $174 billion in assets
under management as of March 31,
2024, we invest across three multi-strategy platforms:
Credit, GP Strategic Capital and Real Estate. Anchored by a strong
permanent capital base, we provide businesses 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.
Together with over 725 experienced professionals globally, 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 who primarily focuses on making private credit and
special situation investments in three principal asset classes –
specialty finance, real estate and corporate. Founded in 2006,
Atalaya is headquartered in New York
City and has more than $10
billion in assets under management and has deployed over
$17 billion across 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 Private
Securities Litigation Reform Act of 1995. When used in this press
release, the words "estimates," "projected," "expects,"
"anticipates," "forecasts," "plans," "intends," "believes,"
"seeks," "may," "will," "would," "should," "future," "propose,"
"target," "goal," "objective," "outlook" and variations of these
words or similar expressions (or the negative versions of such
words or expressions) are intended to identify forward-looking
statements. Any such forward-looking statements are made pursuant
to the safe harbor provisions available under applicable securities
laws and speak only as of the date made. Blue Owl assumes 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 outside Blue Owl's control, that could
cause actual results or outcomes to differ materially from those
discussed in the forward-looking statements.
Important factors, among others, that may affect actual results
or outcomes include the inability to recognize the anticipated
benefits of strategic acquisitions; costs related to acquisitions;
the inability 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 meet 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,
geo-political and competitive factors.
Investor Contact
Ann
Dai
Head of Investor Relations
blueowlir@blueowl.com
Media Contact
Nick
Theccanat
Principal, Corporate Communications & Government Affairs
Nick.Theccanat@blueowl.com
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SOURCE Blue Owl Capital