Blue Owl Capital, an alternative asset manager, has entered into a definitive agreement to acquire the business of alternative credit manager Atalaya Capital Management for $450 million. The acquisition is expected to close in H2/24, subject to customary closing conditions.
Blue Owl Capital, an alternative asset manager, has entered into a definitive agreement to acquire the business of alternative credit manager Atalaya Capital Management for $450 million. The acquisition is expected to close in H2/24, subject to customary closing conditions, and is expected to be modestly accretive to Blue Owl in 2025.
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.
“The acquisition of Atalaya adds adjacent and scaled alternative credit capabilities that complement Blue Owl’s leading position in direct lending,” Doug Ostrover and Marc Lipschultz, co-CEOs of Blue Owl Capital, said. “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.”
“We view Blue Owl as an ideal strategic partner to support the next stage of our growth,” Ivan Zinn said. “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, SMBC and Wells Fargo are acting as co-financial advisors to Blue Owl in connection with the acquisition. Kirkland & Ellis is acting as legal advisor to Blue Owl.
Mizuho, RBC and Truist are acting as co-advisors to Atalaya. Cravath, Swaine & Moore is acting as legal advisor to Atalaya.
