Alternative manager Blue Owl Capital has entered into a definitive agreement to acquire alternative credit manager Atalaya Capital Management for $450 million.
The acquisition, which will boost Blue Owl’s credit and asset-based finance capabilities, is expected to close in the second half of 2024 and will add over $10 billion in assets under management to Blue Owl and is expected to be “modestly accretive to Blue Owl in 2025,” according to a Tuesday news release.
“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,” Blue Owl’s co-CEOs, Doug Ostrover and Marc Lipschultz, said in the release, adding that, “Atalaya significantly expands Blue Owl’s alternative credit offerings and delivers a more robust suite of financing solutions to our stakeholders.”
Atalaya was founded in 2006 by Ivan Zinn and managed over $10 billion of assets as of June 30. The firm focuses primarily on asset-based credit investments across consumer and commercial finance, corporate and real estate assets.
Atalaya has about 115 employees and over 50 investment professionals. Most are expected to join Blue Owl and manage existing Atalaya funds once the acquisition has closed. 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.
“We view Blue Owl as an ideal strategic partner to support the next stage of our growth,” Zinn said in the release.
As part of the purchase price of $450 million, $350 million is Blue Owl equity and $100 million cash, according to the news release. The release also noted that “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.”