Blue Owl Capital Completes Acquisition of Atalaya Capital Management's Business

Rhea-AI Summary

Blue Owl Capital Inc. (NYSE: OWL), a leading alternative asset manager, has completed its acquisition of Atalaya Capital Management LP's business. The acquisition, initially announced in July 2024, significantly expands Blue Owl's alternative credit presence and enhances its market-leading position in direct lending. Atalaya, an alternative credit manager, focuses on asset-based credit investments across consumer and commercial finance, corporate and real estate assets. As of June 30, 2024, Atalaya managed over $10 billion in assets under management. Ivan Zinn, Atalaya's Founding Partner and Chief Investment Officer, has been appointed as Blue Owl's Head of Alternative Credit, reporting to Craig Packer, Head of Credit and Co-President of Blue Owl.

Positive

• Acquisition expands Blue Owl's alternative credit presence
• Enhances Blue Owl's market-leading position in direct lending
• Adds over $10 billion in assets under management
• Appointment of experienced leadership with Ivan Zinn as Head of Alternative Credit

Negative

• None.

Insights

Financial Analyst

The acquisition of Atalaya Capital Management by Blue Owl Capital is a significant strategic move that expands Blue Owl's alternative credit capabilities. With Atalaya managing over $10 billion in assets, this deal substantially increases Blue Owl's AUM and diversifies its credit offerings.

The integration of Atalaya's expertise in asset-based credit investments across consumer, commercial, corporate and real estate sectors complements Blue Owl's existing strengths in direct lending. This diversification could potentially lead to:

• Enhanced revenue streams
• Improved risk management through portfolio diversification
• Cross-selling opportunities across the combined client base

The appointment of Ivan Zinn as Blue Owl's Head of Alternative Credit suggests a commitment to leveraging Atalaya's expertise and maintaining continuity in leadership. This move could facilitate a smoother integration and help retain key talent and clients.

For investors, this acquisition positions Blue Owl for potential growth in the alternative credit space, which has been gaining traction as investors seek yield in a challenging market environment. However, the success of this integration and its impact on Blue Owl's financials will need to be closely monitored in the coming quarters.

Market Research Analyst

The alternative credit market has been experiencing significant growth and Blue Owl's acquisition of Atalaya Capital Management is a strategic move to capitalize on this trend. This deal positions Blue Owl to:

• Expand its market share in the rapidly growing alternative credit sector
• Offer a more comprehensive suite of credit products to institutional investors
• Potentially capture a larger portion of capital flows into alternative investments

The timing of this acquisition is noteworthy, as it comes amid increasing investor interest in private credit strategies due to market volatility and the search for yield. Blue Owl's enhanced capabilities could make it more attractive to a broader range of institutional investors, potentially driving AUM growth.

However, the success of this acquisition will depend on several factors:

• Successful integration of Atalaya's operations and culture
• Retention of key talent and clients
• Ability to generate synergies and cross-selling opportunities

Investors should watch for updates on the integration process and any changes in AUM or fund performance in the coming quarters to gauge the acquisition's impact on Blue Owl's market position and financial performance.

NEW YORK, Sept. 30, 2024 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL), a leading alternative asset manager, announced today the completion of its acquisition of the business of alternative credit manager, Atalaya Capital Management LP ("Atalaya"). The acquisition was previously announced in July of 2024.

Atalaya focuses primarily on asset-based credit investments across consumer and commercial finance, corporate and real estate assets. As of June 30, 2024, Atalaya managed over $10 billion of assets under management. Atalaya's Founding Partner and Chief Investment Officer, Ivan Zinn, has been appointed Blue Owl's Head of Alternative Credit, reporting to Craig Packer, Head of Credit and Co-President of Blue Owl.

The completion of the acquisition of Atalaya's business represents a significant expansion of Blue Owl's alternative credit presence and supplements the firm's market leading position in direct lending.

About Blue Owl

Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives.

With over $192 billion in assets under management as of June 30, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 820 experienced professionals, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com. 

Forward Looking Statements

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "would," "should," "future," "propose," "target," "goal," "objective," "outlook" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date made. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blue Owl's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, among others, that may affect actual results or outcomes include the inability to recognize the anticipated benefits of strategic acquisitions; costs related to acquisitions; the inability to maintain the listing of Blue Owl's shares on the New York Stock Exchange; Blue Owl's ability to manage growth; Blue Owl's ability to execute its business plan and meet its projections; potential litigation involving Blue Owl; changes in applicable laws or regulations; and the possibility that Blue Owl may be adversely affected by other economic, business, geo-political and competitive factors.

Investor Contact
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com

Media Contact
Nick Theccanat
Principal, Corporate Communications & Government Affairs
Nick.Theccanat@blueowl.com

View original content:https://www.prnewswire.com/news-releases/blue-owl-capital-completes-acquisition-of-atalaya-capital-managements-business-302261694.html

SOURCE Blue Owl Capital

FAQ

What company did Blue Owl Capital (OWL) acquire?

Blue Owl Capital (NYSE: OWL) acquired the business of Atalaya Capital Management LP, an alternative credit manager.

When was the acquisition of Atalaya by Blue Owl (OWL) completed?

The acquisition of Atalaya Capital Management's business by Blue Owl Capital (OWL) was completed on September 30, 2024.

How much assets under management did Atalaya bring to Blue Owl (OWL)?

As of June 30, 2024, Atalaya managed over $10 billion of assets under management, which were added to Blue Owl Capital (OWL) through the acquisition.

What is the focus of Atalaya's investment strategy acquired by Blue Owl (OWL)?

Atalaya, now part of Blue Owl (OWL), focuses primarily on asset-based credit investments across consumer and commercial finance, corporate and real estate assets.