Atalaya sells minority stake to Dyal

The New York-based alternative investment manager is the third real estate-related platform in which the private equity firm has invested in the last year.

Atalaya Capital Management has garnered a minority investment that will help it increase the amount of capital the firm contributes to its investment vehicles.

Dyal Capital Group, the permanent capital vehicle of investment firm Neuberger Berman, took a minority stake, through which it will not have voting rights, in New York-based Atalaya, PERE’s sister publication, Private Debt Investor, reported Wednesday. Atalaya invests in real estate, corporate and specialty finance and manages $2.5 billion in assets.

Additional terms of the transaction were not disclosed. The proceeds of the transaction will stay on the investee’s balance sheet so it can put forward larger general partner commitments alongside outside capital it garners from third-party limited partners.

“This capital allows us to continue developing our business for the future and invest more in our funds, fostering greater alignment with our investors,” Atalaya founding partner and chief investment officer Ivan Zinn said in the statement.

Atalaya makes real estate investments primarily through US real estate-backed debt across property types, though it also invests in equity and internationally.

In October, the firm expanded its real estate focus through the appointment of Young Kwon from rival firm Apollo Global Management, Private Debt Investor previously reported. He joined as a managing director and heads the firm’s real estate debt, structured products and equity investment strategies. Before joining Atalaya, Kwon spent six years at Apollo, following a stint as a vice president at JPMorgan Asset Management.

Atalaya’s most recent equity transaction was the May purchase of a 4,900 square foot, mixed-use development site in New York City’s Gramercy Park neighborhood for $14.7 million, according to data provider Real Capital Analytics.

The investment in Atalaya adds yet another alternative lender to Dyal’s portfolio, which has added six companies over the last year.

In August, Dyal bought a minority stake in private equity firm HIG Capital, which has funds spanning private equity, growth equity, real estate, credit, lending and biohealth, PERE previously reported. HIG Realty Partners was founded in 2012 with $3 billion from parent firm HIG Capital, and it now has over $21 billion in real estate assets under management, according to its website.

In September, Dyal bought a minority stake in Starwood Capital Group, which oversees $52 billion in assets and manages funds in global real estate, energy infrastructure and oil and gas.

Dyal was founded in 2011 and manages $9 billion in assets.

— Meghan Morris contributed to this report.