Dyal Capital Partners, a private equity fund managed by former Lehman Brothers asset manager Neuberger Berman, has raised a $1.28bn vehicle to make minority investments in the managing companies of established hedge fund firms.
The fundraising effort exceeded Dyal’s $1bn goal and attracted more than 40 institutional clients including 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 about 12 to 15 institutional hedge fund management companies diversified by strategy and geography.
Those relationships will be structured for the long term as Dyal has raised a dedicated pool of permanent capital to execute the transactions.
The vehicle has made two investments so far and expects to close on several more transactions in the coming months, the firm said in a statement.
Dyal’s investors are expecting to benefit from the current cash flow of hedge fund company investments and from enhanced access to a select group of leading hedge fund managers.
The firm said its underlying hedge fund partners will partially monetise 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.
The closing follows recent reports that global private equity giant Blackstone is planning to launch a multibillion dollar fund to buy stakes in hedge fund managers in the secondaries market.
Blackstone’s new fund could attract between $2bn and $3bn, and is understood to be aiming for returns of more than 20 per cent.
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