NEW YORK – Blue Owl Capital Inc. (NYSE: OWL), a notable different asset supervisor, disclosed its definitive settlement to accumulate Atalaya Capital Administration LP, an alternate credit score supervisor, for a sum of $450 million. The acquisition, which is anticipated to shut within the latter half of 2024, is projected to reinforce Blue Owl’s monetary efficiency beginning in 2025.
Atalaya, acknowledged for its concentrate on asset-based credit score investments, manages over $10 billion in property. The New York-based agency, established in 2006, has a considerable observe document, having deployed greater than $17 billion of capital. Atalaya’s practically 115 workers, together with over 50 funding professionals, are anticipated to affix Blue Owl after the acquisition.
The transaction will contain $350 million in Blue Owl fairness and $100 million in money. Moreover, there’s the potential for as much as $350 million in earnout consideration in fairness, conditional on reaching sure income targets.
Blue Owl’s Co-CEOs Doug Ostrover and Marc Lipschultz remarked on the acquisition’s strategic match, highlighting Atalaya’s pioneering function in non-public asset-based finance and its sturdy sourcing and underwriting capabilities.
Ivan Zinn, Atalaya’s Founding Associate and Chief Funding Officer, will transition to Blue Owl as Head of Various Credit score, reporting to Craig Packer, Head of Credit score and Co-President of Blue Owl. Zinn expressed enthusiasm for the partnership with Blue Owl, which he believes will assist Atalaya’s continued progress.
The monetary advisors for Blue Owl on this deal embody Citigroup, MUFG Financial institution, Ltd., SMBC, and Wells Fargo, with Kirkland & Ellis LLP serving as authorized advisor. Atalaya’s advisors are Mizuho, RBC, and Truist, with authorized recommendation from Cravath, Swaine & Moore LLP.
Blue Owl, with over $174 billion in property below administration as of March 31, 2024, is engaged in offering non-public capital options and different funding alternatives throughout numerous platforms.
This report relies on a press launch assertion.
In different current information, Blue Owl Capital has seen a flurry of exercise from monetary analysts and strategic developments. TD Cowen downgraded the corporate’s inventory from a “Buy” to a “Hold” score, citing considerations over earnings potential and dividend projections. Regardless of this, Piper Sandler, Citi, and Deutsche Financial institution maintained optimistic rankings for the agency, with value targets starting from $21.00 to $23.00.
Blue Owl Capital additionally reported its twelfth consecutive quarter of elevated fee-related and distributable earnings, a testomony to its constant progress. The corporate efficiently raised $5.2 billion for its Fund VI and introduced the proposed acquisitions of Kuvare Asset Administration and Prima Monetary Advisors.
Along with these monetary developments, Blue Owl Capital appointed Haitham Abdulkarim to guide its institutional enterprise within the Center East, indicating an growth technique within the area.
InvestingPro Insights
Blue Owl Capital Inc. (NYSE: OWL) has not too long ago made headlines with its strategic acquisition of Atalaya Capital Administration LP. The transaction is anticipated to bolster Blue Owl’s place within the different asset administration area. As traders take into account the implications of this transfer, a take a look at the present monetary metrics supplied by InvestingPro presents useful insights into the corporate’s market standing and future prospects.
In line with InvestingPro, Blue Owl Capital boasts a sturdy market capitalization of $25.45 billion, underscoring its vital presence within the business. Regardless of a excessive P/E ratio of 118.01, the adjusted P/E ratio for the final twelve months as of Q1 2024 has improved to 85.92. This adjustment suggests a extra favorable earnings outlook, which aligns with one of many InvestingPro Suggestions indicating that internet revenue is anticipated to develop this yr. Moreover, the corporate’s income progress stays robust, with a notable improve of 24.87% within the final twelve months as of Q1 2024.
Buyers must also observe that Blue Owl’s dividend yield stands at a lovely 4.04%, and the corporate has a historical past of elevating its dividend for 3 consecutive years, as highlighted by one other InvestingPro Tip. This constant dividend progress, which was 38.46% during the last twelve months as of Q1 2024, could attraction to income-focused traders on the lookout for steady returns.
For these curious about deeper evaluation and extra insights, InvestingPro presents a wealth of ideas; in actual fact, there are 9 extra InvestingPro Suggestions obtainable for Blue Owl Capital Inc., which could be accessed at: https://www.investing.com/professional/OWL. To additional improve your funding analysis, use the coupon code PRONEWS24 to rise up to 10% off a yearly Professional and a yearly or biyearly Professional+ subscription.
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