Blue Owl to Acquire Atalaya Capital Management for $450M

Blue Owl Capital Inc. has acquired New York-based alternative credit manager Atalaya Capital Management for $450 million, 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.

Founded in 2006 by Ivan Zinn, CIO, Atalaya focuses primarily on asset-based credit investments across consumer and commercial finance, corporate and real estate assets, with over $10 billion of assets under management as of June 30, 2024. Upon closing, most of Atalaya’s approximately 115 employees are expected to join Blue Owl and will continue to manage existing Atalaya funds.

Zinn will join the $174 billion alternative asset manager as head of alternative credit and report to Craig Packer, head of credit and co-president of Blue Owl. The acquisition is expected to close in the second half of 2024 and be modestly accretive to Blue Owl in 2025.

“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-CEOs Doug Ostrover and Marc Lipschultz. “Atalaya significantly expands Blue Owl’s alternative credit offerings and delivers a more robust suite of financing solutions to our stakeholders.”

Citigroup, MUFG Bank, Ltd., SMBC and Wells Fargo are acting as co-financial advisors to Blue Owl. Kirkland & Ellis LLP is acting as legal advisor. Mizuho, RBC and Truist are acting as co-advisors to Atalaya. Cravath, Swaine & Moore LLP is acting as legal advisor.