Anyone heard of Atalaya? $2.5B distressed debt fund

Has anyone heard of Atalaya Capital Management? Looks like a hedge fund/pe hybrid that raises closed-ended funds and invests in distressed credit and originates debt too.

Curious what the reputation is?

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  • Associate 2 in PE - Other
Jan 26, 2021 - 9:01pm

Not too familiar with anyone there but definitely one of the larger/well-respected funds within specialty finance/privately originated ABS type investing. I've heard they've raised a lot of capital recently some of which is slightly lower yielding than what they've done before so have been really aggressive bidding deals out in the market.

May 16, 2021 - 1:12pm

Fundraising: Atalaya Asset Income Fund V closes at $1 billion hard cap

Atalaya Capital Management today announced the final close of its fifth asset income fund at the vehicle's $1 billion hard cap, exceeding its $900 million target.

Atalaya Asset Income Fund V will primarily originate loans and acquire credit-related assets in the specialty finance sector. Targeted investments include, but are not limited to, commercial finance assets, consumer finance assets and select leasing opportunities such as middle-market mission-critical equipment and aviation assets.

The Atalaya Asset Income Fund strategy launched in 2012 to complement the firm's existing special opportunities fund strategy. Since its inception, the asset income fund strategy has made more than 135 investments in specialty finance. The fund's prior vintage, Atalaya Asset Income Fund IV, was also oversubscribed and closed at its hard cap with $900 million in capital commitments in 2018.

Direct Lending: Opportunity Financial expands $50M credit facility with Atalaya Capital

Opportunity Financial today announced it has closed an expanded $50 million corporate credit facility with Atalaya Capital Management.

Proceeds from the financing will be used to refinance existing corporate debt and to provide growth capital to broad credit access to consumers who are locked out of mainstream financial options.

Opportunity Financial is a financial technology platform that powers bankers to help consumers gain access to credit. OppFi Card, the Chicago-based company's new credit card product, is planned to launch in the second half of 2021.

Opportunity Financial on Feb. 10 announced a definitive business combination agreement with FG New America Acquisition Corp., a special purpose acquisition company listed on the New York Stock Exchange under the symbol FGNA. Upon closing the combined company's common stock is expected to trade on the New York Stock Exchange under the symbol OPFI. The business combination is expected to close by the end of the second quarter.

Opportunity Financial expects to reach 2020 adjusted EBITDA of $99 million.

  • Analyst 3+ in IB - Ind
May 18, 2021 - 10:57pm

I sat across from Atalaya on a special debt financing deal of $150MM+. Generally speaking the people we interacted with were sharp but I wasn't awestruck. The seniors we interacted with were deceivingly "laid back" initially as they were very obviously sharp elbowed. They also tried to retrade the deal 2x, the last time DAYS before sign / close so we ended up going with another lender.

If you get an opportunity with them you should take the interviews and learn for yourself about the team. Through my interactions with them it seemed that they had strong deal flow and are relatively creative with their structures, with a lean investing team.

  • Associate 2 in RE - Comm
May 18, 2021 - 11:57pm

When ppl say a firm is creative with its structures (which I've come cross multiple times), what does that mean? Can you give an example?

  • Analyst 3+ in IB - Ind
May 19, 2021 - 2:17am

Creative in a deal is being flexible / opportunistic in how an investment is structured (interest bearing debt, PIK debt, Warrants, rights, preferred stock with dividend, etc.) to cater to the situation at hand.

In one instance, the borrower was looking for financing but wanted to reduce dilution and maximize cash on hand for working capital. Atalaya came back with some alternative investment structures that would best optimize for what the company was looking for, but were structured to minimize downside risk, guarantee an attractive return and get a Cherry on top if things go really well. It was more expensive than a simple term loan, but it also was a customized financing solution that was still attractive enough to move forward with.

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