Dyal Capital Partners, a private equity fund managed by Neuberger Berman Group, has received USD1.28bn in client commitments to make minority investments in the management companies of established hedge fund firms.
The fundraising effort exceeded Dyal's goal of USD1bn. Investors included sovereign wealth funds, public and private pensions, multi-employer pensions, insurance companies, endowments and foundations, family offices and private banks.
Dyal's strategy is to purchase minority equity interests in a portfolio of approximately 12 to 15 institutional hedge fund management companies, diversified by strategy and geography. These relationships will be structured for the long term, as Dyal has raised a dedicated pool of permanent capital to execute these transactions.
Dyal has made two investments so far and expects to close on several more transactions in the coming months.
Dyal's underlying hedge fund partners will partially monetize their equity ownership and receive strategic assistance with business and product strategy, as well as select introductions to Dyal's investors and Neuberger Berman's clients globally.
"We are excited to have such a high-quality group of institutional investors that partnered with us on an investment opportunity as unique as Dyal," says Michael Rees, the head of Dyal and a managing director of Neuberger Berman. "Dyal's ability to provide both financial and strategic solutions to its hedge fund partners should prove very attractive for Dyal's investors in the long run."