Dyal Faces Golub Fury as Backlash Grows Over Deal With Owl Rock

Dyal Capital is fending off backlash from another investment firm as opposition grows to its intricate deal to merge with Owl Rock.

Golub Capital, a $35 billion credit specialist, has confronted executives at Dyal with opposition to the deal, according to people with knowledge of the matter. The merger would result in a minority owner in Golub’s business combining with a competitor. Another investment firm, Sixth Street Partners, has already sued Dyal in a Delaware court seeking to block the merger with Owl Rock until concerns it has about the transaction are addressed.

“Any large transaction generates discussion, and we are speaking to our partner managers to ensure they understand what is happening,” David Wells, a spokesman representing the firms in the merger, said in an emailed statement.

A representative for Golub declined to comment on their interactions.

Dyal, a unit of Neuberger Berman, has built a successful business buying up stakes in private investment firms that have enjoyed a decade of booming growth. Now some of those relationships are under strain after the company crafted a plan that could see it emerge as a rival to some of these same firms in which it holds ownership interests.

Dyal purchased a minority stake in Golub in August 2018. A year before that, it struck a deal with Sixth Street to acquire a roughly 10% stake after paying about $420 million, people familiar with the matter have said.

Resentment was stoked by an announcement in December that Dyal and Owl Rock planned to merge and go public with $45 billion in assets and a new name -- Blue Owl. Dyal has taken up stakes in firms that compete with Owl Rock, a dominant player in the direct-lending market.

The deal was topped by an added layer of intrigue with the duo electing to simultaneously merge with a blank-check company: Altimar Acquisition Corp., a special purpose acquisition company backed by HPS Investment Partners. HPS also competes with firms Dyal has backed.

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