Owl Rock Capital Group and Dyal Capital Partners confirmed they are in discussions regarding a potential strategic combination.

The potential combination would bring together two investment platforms that provide capital solutions to the alternative asset management industry: Owl Rock’s direct lending platform, which provides financing to middle-market companies (most of which are owned or sponsored by alternative asset managers), and Dyal, which provides capital solutions and strategic support to alternative asset managers.

The founders of Owl Rock and Dyal would lead the standalone firm and the investment teams and processes would remain unchanged. The Owl Rock and Dyal founders, alongside Neuberger Berman Group, the parent of Dyal, would have key positions in the combined business.

The parties have signed a non-binding letter of intent and are engaged in exclusive negotiations with Altimar Acquisition Corporation, a special purpose acquisition company, to facilitate the potential combination.

Discussions between all parties are ongoing and may not progress or result in a definitive transaction. Entering into any such transaction would be subject to continuing diligence, the negotiation and execution of definitive agreements as well as corporate approvals.