Owl Rock Cash Associates LP and Dyal Funds Companions agreed to merge in a sophisticated deal that would take them general public by way of a blank-examine enterprise.
The new organization, to be named Blue Owl, would merge just one of the biggest house owners of private-equity firm stakes with Owl Rock, a rapidly rising credit rating trader. It would be valued at about $12.5 billion.
The Wall Avenue Journal noted before this month that the companies ended up speaking about this sort of a offer.
The firms approach to go community via a merger with
Altimar Acquisition Corp.
, a distinctive-reason acquisition organization sponsored by an affiliate of HPS Investment decision Associates LLC. The offer also features added funds of about $1.5 billion from institutional investors.
Blue Owl would be led by Owl Rock co-founder
as main govt.
SPAC mergers have exploded in recognition just lately as an alternate to conventional original community offerings. This offer, assuming shareholders approve it, would be one of the premier these kinds of transactions. It is the second-greatest SPAC transaction declared in the U.S. this calendar year, eclipsed only by a offer to just take home loan originator United Wholesale Property finance loan public at a valuation of roughly $16 billion.
The deal is also one of a couple circumstances of two businesses merging with each and every other and a SPAC simultaneously. Sports-betting operator
merged with a gambling-technological know-how provider as portion of a deal that took it general public by way of a SPAC previously this 12 months.
Dyal was started in 2011 by Lehman Brothers veterans
and is the most significant owner of minority stakes in personal-equity companies, credit score outlets and hedge resources. It by now owns stakes in both equally Owl Rock and HPS.
For its complete existence, Dyal has been a unit of Neuberger Berman Team LLC, the major, privately held investment decision business. Neuberger would retain a stake in Blue Owl and hold a board seat.
Owl Rock was started in 2016 by Mr. Ostrover, who co-founded GSO Capital Partners and later on sold it to
& Co. spouse
Goldman Sachs Team Inc.
It has shot up to $23.7 billion in property, managed primarily by means of small business-progress companies.
The business focuses on a quickly-escalating place known as direct lending, in which nonbanks make financial loans to midsize businesses, numerous of them backed by personal fairness, and hold them on their textbooks. These types of creditors have been on the rise considering that the aftermath of the 2008-09 financial disaster, when financial institutions shed numerous of their riskier corporations.
Perella Weinberg Companions LP, Goldman Sachs & Co. LLC and BofA Securities Inc. are money advisers to Owl Rock. Ardea Companions LP is fiscal adviser to Neuberger Berman and Dyal Evercore Team LLC is monetary adviser to Dyal and J.P. Morgan Securities LLC is fiscal adviser to Altimar. Citigroup and UBS are also advising Neuberger Berman.