Blue Owl Capital acquires Atalaya Capital Management’s business for $450M

Blue Owl Capital has entered into a definitive agreement to acquire the business of alternative credit manager Atalaya Capital Management for $450M. The acquisition is expected to close in the second half of 2024, subject to customary closing conditions, and is expected to be modestly accretive to Blue Owl in 2025. Atalaya focuses primarily on asset-based credit investments across consumer and commercial finance, corporate and real estate assets, and managed over $10B of AUM as of June 30, 2024. Since inception, Atalaya has deployed over $17B of capital with nearly 70% of deal flow sourced directly through asset owners, originators or joint venture partners. Atalaya was founded in 2006 by Ivan Zinn, who serves as Founding Partner and Chief Investment Officer. 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. Atalaya is based in New York and has approximately 115 employees. Upon closing of the acquisition, most of Atalaya’s employees are expected to join Blue Owl and will continue to manage existing Atalaya funds. The closing purchase price of $450M is comprised of $350M of Blue Owl equity and $100M of cash. In addition, there is potential for up to $350M of earnout consideration in the form of equity, subject to certain adjustments and achievement of future revenue targets.