Dyal Capital Partners Takes Minority Stake in Atalaya Capital Management

Jun 28 2017 | 10:19pm ET

Dyal Capital Partners has entered into a primary transaction with Atalaya Capital Management that will see the Neuberger Berman unit become a passive, non-voting minority partner in the alternative private credit manager.

Terms of the transaction were not disclosed, although Dyal’s typical stake is between 10% and 33%. All of the proceeds from the investment will be retained on Atalaya’s balance sheet to expand the firm’s capabilities and increase the firm’s investment alongside its investors, the company said on Wednesday. 

“Dyal’s investment is a significant event for Atalaya as it represents the validation of a deliberate and long-term strategy to build an enduring asset management business,” said Ivan Q. Zinn, founder and managing partner of Atalaya. “We are thrilled to partner with Dyal, which has earned a reputation for supporting best-in-class managers.  

"Atalaya is an impressive organization with a differentiated approach to sourcing and structuring credit-oriented investments,” Michael Rees, head of Dyal Capital Partners, added. “With Dyal’s permanent capital investment and our business platform resources, Atalaya will further enhance its business and market position.”

PL Advisors advised Atalaya on the transaction. Dyal’s investment reportedly came from the company’s $1.28 billion Dyal Capital Partners II fund, according to an article in Pensions & Investments.

Dyal raised $5.3 billion for its oversubscribed third fund in Feburary 2017, the largest vehicle ever formed to acquire minority interests in leading institutional private market firms.

New York-based Atalaya was founded in 2006 and manages more than $2.5 billion largely deployed in private credit and special opportunities across financial assets, real estate and corporate asset classes. 

Dyal Capital Partners was formed in 2011 and manages nearly $9 billion across three permanent capital funds containing a total of 25 minority partnerships in institutional alternative asset management businesses worldwide, including such well-known names as Halcyon Capital Management, Jana Partners, Graham Capital Management, Starwood Capital Group and Vista Equity Partners.


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