Bulletin: Blue Owl Capital Inc.'s $450 Million Acquisition Of Atalaya Will Expand Alternative Credit Capabilities

NEW YORK (S&P Global Ratings) July 16, 2024--S&P Global Ratings today said Blue Owl Capital Inc.'s proposed $450 million acquisition of New York-based Atalaya Capital Management will expand Blue Owl's alternative credit capabilities. Atalaya (not rated) manages over $10 billion in assets under management (AUM) on behalf of institutional and high-net-worth investors. Blue Owl expects to close the acquisition in the second half of 2024, subject to regulatory and other customary approvals. Our rating on Blue Owl (BBB/Stable/--) is not affected by the announcement. Blue Owl will fund the acquisition primarily with equity. Specifically, it will issue around $350 million of equity and use $100 million of cash to reinvest into Blue Owl products on a posttax basis. Additionally, Atalaya

...July 16, 2024 NEW YORK (S&P Global Ratings) July 16, 2024--S&P Global Ratings today said Blue Owl Capital Inc.'s proposed $450 million acquisition of New York-based Atalaya Capital Management will expand Blue Owl's alternative credit capabilities. Atalaya (not rated) manages over $10 billion in assets under management (AUM) on behalf of institutional and high-net-worth investors. Blue Owl expects to close the acquisition in the second half of 2024, subject to regulatory and other customary approvals. Our rating on Blue Owl (###/Stable/--) is not affected by the announcement. Blue Owl will fund the acquisition primarily with equity. Specifically, it will issue around $350 million of equity and use $100 million of cash to reinvest into Blue Owl products on a posttax basis. Additionally, Atalaya will be eligible for up to $350 million in future earnout payments (which we treat as debt in our leverage calculation), consisting of 100% stock, to be paid out subject to Atalaya achieving certain...

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