Dyal Capital Partners has taken a passive, non-voting minority stake in Atalaya Capital Management, a $2.5 billion private credit and special opportunities firm, said Ivan Q. Zinn, founder, managing partner and chief investment officer of Atalaya.
Mr. Zinn declined to provide the exact size of the minority investment but added that Dyal typically acquires minority stakes of 10% to 33%. "We are in that range," he said.
Alexander Samuelson, a spokesman for Neuberger Berman unit Dyal Capital, confirmed the deal was made from the $1.28 billion Dyal Capital Partners II but declined further comment. Dyal's second fund is about 40% invested, he said in an email.
Terms of the deal are not being disclosed. Atalaya will retain the proceeds of the sale on its balance sheet for firm expansion and to increase the firm's general partner investment.
Historically, Atalaya has committed about 1% in its funds. The capital from the Dyal deal would give Atalya executives the capital to invest 2% or more, Mr. Zinn said.
Two other, less important benefits of the transaction would be to allow Atalaya executives to expand the firm and the team opportunistically, and to be able to invest in people and strategies should there be a downturn in the credit cycle, which is in its later stages, Mr. Zinn said.