Blue Owl Acquires Atalaya Capital Management in $450m Deal

Alternative asset manager Blue Owl expands its credit and asset-based finance capabilities with the acquisition of Atalaya Capital Management for $450m.

Blue Owl, an alternative asset manager, has recently acquired Atalaya Capital Management in a deal worth $450 million. This acquisition is expected to significantly enhance Blue Owl's alternative credit and asset-based finance capabilities. Atalaya, based in New York, currently manages over $10 billion in assets, with a focus on asset-based credit investments in various sectors such as consumer and commercial finance, corporate, and real estate.

The transaction consists of $350 million in Blue Owl equity and $100 million in cash. Additionally, there is a possibility of up to $350 million in earnout consideration in the form of equity, contingent upon meeting future revenue targets. The deal is projected to be "modestly accretive" to Blue Owl in the next year and is anticipated to close in the second half of 2024.

Following the acquisition, Ivan Zinn, the founding partner and chief investment officer of Atalaya, will join Blue Owl as the head of alternative credit. He will report to Craig Packer, the head of credit and co-president of Blue Owl. It is expected that the majority of Atalaya's 115 employees will transition to Blue Owl post-closure and will continue to manage the existing Atalaya funds.

This acquisition is part of Blue Owl's strategic growth plan, as the company has been actively expanding its portfolio throughout the year. In April, Blue Owl ventured into real estate finance with the acquisition of Prima Capital Advisors and bolstered its insurance solutions by acquiring Kuvare Asset Management.

The acquisition of Atalaya Capital Management by Blue Owl represents a significant milestone in the expansion of Blue Owl's alternative credit and asset-based finance capabilities. With this strategic move, Blue Owl is poised to further strengthen its position in the market and drive continued growth in the future.