Owl Rock and Dyal Capital to merge and form $45bn Blue Owl Capital in SPAC deal with Altimar

Blue Owl Capital is set to become a major force in alternative asset management following the announced merger of Owl Rock Capital Group and Dyal Capital Partners. The newly formed company will manage more than $45 billion in assets and will enter public markets via a merger with the special purpose acquisition company Altimar Acquisition Corporation, sponsored by an affiliate of HPS Investment Partners. The deal values the merged entity at a post-transaction market capitalization of approximately $12.5 billion, positioning Blue Owl Capital as one of the most prominent players in the U.S. private capital market.

The transaction structure is designed to create a permanent capital platform that unifies direct lending and GP stake investment strategies under a single, scalable framework. By combining Owl Rock’s credit capabilities with Dyal Capital’s minority investment model, Blue Owl Capital aims to offer institutional investors access to a broader range of capital solutions while preserving durable income streams.

What is the Blue Owl Capital merger and why is it significant?

The merger marks one of the largest tie-ups in the alternative asset management space in 2020, a year defined by both market disruption and acceleration in private markets. The decision to take Blue Owl Capital public via a SPAC deal reflects the growing appeal of these vehicles among financial firms seeking capital efficiency and deal certainty. With more than $45 billion in combined assets under management, the firm will be well-positioned to capitalize on increasing demand for yield, diversification, and exposure to private assets among institutional investors.

The use of a SPAC structure also offers speed and strategic flexibility. Rather than pursuing a traditional IPO, the merger with Altimar Acquisition allows Blue Owl to fast-track its public listing and access a deep pool of committed investors through a parallel PIPE transaction. This structure is gaining momentum across financial services as established platforms look for non-traditional ways to achieve scale and liquidity.

What are Owl Rock and Dyal Capital’s core strengths?

Owl Rock Capital Group is a New York-based direct lending platform focused on providing customized debt financing to middle-market companies in the United States. As of September 30, 2020, the firm managed nearly $23.7 billion in assets across its business development companies and private credit funds. Founded by Doug Ostrover, Marc Lipschultz, and Craig Packer, Owl Rock has built its reputation by aligning with private equity sponsors and deploying capital into highly structured, income-generating assets.

Dyal Capital Partners operates as a unit of Neuberger Berman Group and has carved out a leadership position in the GP stakes space. The firm specializes in acquiring minority equity interests in alternative asset managers, offering them long-term capital and strategic support. By investing in high-performing managers across hedge funds, private equity, and credit, Dyal has cultivated a portfolio of aligned interests that generate stable management fee and carried interest participation for its investors.

Together, Owl Rock and Dyal Capital bring distinct but complementary strengths. The former excels in direct lending, while the latter monetizes the growth of asset managers through equity participation. Blue Owl Capital will integrate these two approaches to build a more holistic investment platform focused on recurring revenue, fee durability, and long-duration capital alignment.

Who will lead Blue Owl Capital after the merger?

Doug Ostrover, a co-founder of Owl Rock Capital Group, will serve as Chief Executive Officer of Blue Owl Capital. Marc Lipschultz, another Owl Rock co-founder, and Michael Rees, founder of Dyal Capital Partners, will become co-presidents of the new firm. This leadership structure underscores the equal weight each business brings to the table and reflects a long-term commitment to the combined vision.

In public remarks, Ostrover described Blue Owl’s mission as offering a holistic suite of capital solutions to private equity firms and privately held businesses. He emphasized that Blue Owl’s scale, agility, and permanent capital base would drive consistent, long-term growth. Rees noted that the merger combines strong earnings visibility, robust margins, and scalable infrastructure—attributes that are increasingly valued by public market investors seeking exposure to the alternative investment sector.

What are the financial details of the Blue Owl Capital SPAC deal?

The transaction will generate approximately $1.8 billion in gross proceeds, combining $275 million held in trust by Altimar Acquisition with a $1.5 billion private investment in public equity (PIPE). The PIPE is fully committed and was priced at $10.00 per share. The participating investors include some of the most prominent institutional names, such as ICONIQ Capital, CH Investment Partners, Koch Companies Defined Benefit Master Trust, Liberty Mutual Investments, and the Federated Hermes Kaufmann Funds. Their involvement suggests broad institutional confidence in the structure and strategy of Blue Owl Capital.

Following the merger, shareholders of Owl Rock and Dyal Capital are expected to retain an 85 percent stake in the new company, ensuring that founding partners and key executives remain fully invested in the long-term success of the business. This structure aligns management interests with public shareholders and demonstrates commitment to governance stability and capital discipline.

Importantly, senior leadership from both founding firms will retain their equity positions post-transaction. This retention of ownership is a critical component of investor confidence, particularly in the asset management space, where talent retention and long-term alignment are key indicators of future performance.

How does this deal fit into the larger trend of financial SPAC transactions?

The Blue Owl Capital formation aligns with a broader trend of SPAC-driven consolidation and public listings across the financial sector. Throughout 2020, SPACs have exploded in popularity, raising more than $70 billion across more than 200 listings. Many have targeted fintech and asset management platforms, where strong cash flows, limited capital expenditure needs, and scalable models make for attractive SPAC targets.

SPACs offer alternative managers a way to raise growth capital while gaining a public equity currency for future M&A. For Owl Rock and Dyal, the move enables capital formation without the unpredictability of a traditional IPO process. Moreover, the visibility and liquidity provided by a public listing could enhance Blue Owl’s appeal to institutional allocators seeking transparency, governance, and access to private market return profiles.

This strategic shift reflects a broader evolution within the alternatives industry, where firms are increasingly focused on permanent capital strategies, technology integration, and product innovation to meet the shifting demands of investors in a low-yield, high-volatility environment.

What does this mean for investors in alternative asset management?

Public market investors will now have access to an alternative asset platform with predictable fee streams, diversified income, and exposure to private credit and GP stakes—all within a single equity. Blue Owl Capital’s dual revenue model is expected to deliver high margins, consistent cash flow, and organic growth through reinvestment and strategic acquisitions.

Investor materials released by the firms highlight Blue Owl’s potential for sustainable earnings growth driven by contractual fee income and performance-linked revenue sharing. Analysts covering the alternative space suggest that Blue Owl may become a bellwether for how traditional and innovative private market strategies can be integrated into a unified public entity.

The firm’s business model offers low correlation to public market volatility, which is particularly appealing in the context of 2020’s market dislocations caused by the COVID-19 pandemic. Owl Rock’s direct lending has proven resilient due to careful underwriting and sponsor relationships, while Dyal’s minority stakes model benefits from diversification and embedded optionality on asset manager growth.

Regulatory approvals and expected timeline for closing

The transaction is contingent on the approval of shareholders from both Owl Rock Capital Group and Altimar Acquisition, along with standard regulatory and closing conditions. Assuming all approvals are secured, the merger is expected to close in the first half of 2021. Upon completion, Blue Owl Capital will begin trading on the New York Stock Exchange, signaling a new era of access and exposure to the alternative investment space.

Given the caliber of the firms involved and the strategic rationale underpinning the merger, industry observers expect the approvals to proceed without major obstacles. The deal has already drawn significant institutional attention, not only due to its size and profile but because it showcases a forward-thinking approach to platform creation in asset management.

Institutional sentiment and future growth expectations

The formation of Blue Owl Capital is being closely watched by institutional investors and financial analysts as a potential blueprint for scaling private market platforms. The combination of recurring fee income, sponsor alignment, and long-term capital positions the business for durable outperformance. Analysts expect the platform to benefit from favorable secular trends including the institutional shift toward private assets, growth in direct lending, and consolidation within the GP stakes space.

With its enhanced scale and diversified business model, Blue Owl Capital is likely to explore expansion into adjacent strategies over time, including insurance capital, real asset lending, and international distribution. However, the immediate focus remains on seamless integration, strong organic growth, and disciplined capital deployment following the public listing.