Investment firms Owl Rock Capital Group and Dyal Capital Partners have agreed to combine and go public through Altimar Acquisition, a special purpose acquisition company (SPAC).

Dubbed Blue Owl Capital, the new entity will be an alternative asset management firm with over $45bn in AuM. It would be valued at $12.5bn.

Following the transaction, Blue Owl is expected to be listed on the NYSE under the new ticker ‘OWL’.

The merged entity

Blue Owl will focus on two of the main alternative asset management areas where Owl Rock and Dyal are specialised – direct lending and GP Capital Solutions.

It is anticipated to be well positioned to grow its asset base and distributable earnings owing to the complementary client relationships and skillsets of Dyal and Owl Rock.

The Owl Rock and Dyal businesses will remain autonomous but complementary.

Owl Rock co-founder Doug Ostrover will head Blue Owl as CEO while Dyal founder Michael Rees and Owl Rock co-founder Marc Lipschultz will serve as the co-presidents of Blue Owl.

Ostrover said: “Blue Owl’s expertise, agility and scale, supported by a substantial permanent capital base, will enable us to offer a holistic platform of capital solutions to private equity firms and privately held businesses.

“We believe this will broaden and deepen our relationships and provide us with unrivalled access to compelling investment opportunities. In addition, this permanent capital base will allow Blue Owl to continue to strongly grow its business in a consistent and predictable manner.”

Upon completion of the transaction, Blue Owl will be a stand-alone firm and Owl Rock and Dyal founders, along with Dyal’s parent company Neuberger Berman, will own meaningful equity positions in Blue Owl.

The deal is expected to close in the first half of next year.

In 2018, Dyal acquired a minority stake in private equity group Bridgepoint.