Different asset supervisor Blue Owl has purchased Atalaya Capital Administration, in a $450m (£347m) deal that it says will considerably increase its various credit score and asset-based finance capabilities.
New York-based Atalya manages over $10bn of property, targeted totally on asset-based credit score investments throughout shopper and industrial finance, company and actual property.
The transaction worth is comprised of $350m of Blue Owl fairness and $100m of money.
There may be additionally the potential for as much as $350m of earnout consideration within the type of fairness, topic to assembly future income targets.
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The deal – which is anticipated to be “modestly accretive” to Blue Owl subsequent yr – is anticipated to shut within the second half of 2024.
Atalaya’s founding companion and chief funding officer Ivan Zinn will be part of Blue Owl as head of different credit score, reporting to Craig Packer, head of credit score and co-president of Blue Owl.
Most of Atalya’s 115 staff are anticipated to hitch Blue Owl after the deal has closed, and can proceed to handle current Atalaya funds.
“The acquisition of Atalaya provides adjoining and scaled various credit score capabilities that complement Blue Owl’s main place in direct lending,” mentioned Blue Owl’s co-chief executives Doug Ostrover and Marc Lipschultz.
“Atalaya was an early pioneer in personal asset-based finance. They’ve created a sturdy enterprise with extremely differentiated sourcing and underwriting experience and have demonstrated a robust observe file throughout market cycles. Atalaya considerably expands Blue Owl’s various credit score choices and delivers a extra sturdy suite of financing options to our stakeholders.”
Zinn mentioned: “We view Blue Owl as a really perfect strategic companion to assist the subsequent stage of our progress. We’re happy with the distinctive observe file we constructed over practically twenty years and are extremely grateful to our buyers, group and companions who made this journey doable. We sit up for persevering with to drive ahead at the vanguard of different credit score as a part of Blue Owl.”
Blue Owl has been on a shopping for spree this yr. In April, it expanded into actual property finance by its acquisition of Prima Capital Advisors and grew its insurance coverage options by buying Kuvare Asset Administration.