New York-based direct lending platform Owl Rock Capital Group and Dyal Capital Partners division of Neuberger Berman Group LLC announced their definitive business combination agreement to form Blue Owl Capital Inc., an alternative asset management firm with over $45.0 billion in assets under management.
Blue Owl will enter the public market through a business combination with Altimar Acquisition Corp. (ATAC), a special purpose acquisition company sponsored by an affiliate of HPS Investment Partners, LLC.
The combined company is expected to be listed on the NYSE under the ticker symbol “OWL” following the expected close of the transaction in the first half of 2021
Upon completion of the deal, Blue Owl will be a stand-alone firm and Owl Rock and Dyal founders, alongside Neuberger Berman, will own meaningful equity positions in Blue Owl.
Pursuant to the transaction, Altimar, which currently holds $275 million in cash in trust, will combine with Blue Owl at an estimated $12.5 billion pro forma equity value at closing.
Assuming no redemptions by Altimar’s existing public stockholders, the existing equityholders of Owl Rock and Dyal, including Neuberger Berman, will hold approximately 85% of Blue Owl immediately following the closing of the business combination.
The founders and senior managers of Blue Owl will retain their equity stakes immediately following the deal.
The combined entity is expected to have a post-transaction market capitalization of approximately $12.5 billion.
The new firm’s main business will focus on two of the fastest growing areas of alternative asset management: Direct Lending, and GP Capital Solutions.
Upon completion of the strategic combination, Blue Owl will be led by Doug Ostrover, Owl Rock co-founder, as Chief Executive Officer.
The senior management team will also include Michael Rees, founder of Dyal, and Marc Lipschultz, Owl Rock co-founder, as co-Presidents.
Craig Packer, Owl Rock co-founder, will continue as Chief Executive Officer of the Owl Rock BDCs.
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