Owl Rock, Dyal Capital to go public via SPAC merger

[NEW YORK] Asset managers Owl Rock Capital Group and Dyal Capital Partners on Wednesday agreed to merge and go public through Altimar Acquisition Corp, a blank-cheque company.

The combined company, to be known as Blue Owl Capital, would be valued at about US$12.5 billion managing over US$45 billion in assets and will list on the NYSE after close of the deal first half of 2021.

The deal is expected to provide about US$1.8 billion in gross proceeds, of which US$275 million will be provided by Altimar through cash held in a trust and US$1.5 billion will come from investors, including ICONIW Capital, CH Investment Partners and Liberty Mutual Investments among others.

Altimar, which is a special purpose acquisition company, raised US$250 million in its IPO in October this year.

A SPAC is a shell company which raises funds in an IPO with the aim of acquiring a private company, which then becomes public as result of the merger.

SPACS have emerged as one of Wall Street's most popular investment vehicles in 2020, with over 200 SPACS raising more than US$70 billion.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

REUTERS