NEW YORK, Dec. 3, 2012 /PRNewswire/ -- Dyal Capital Partners ("Dyal"), a private equity fund managed by Neuberger Berman Group LLC, is pleased to announce that it has received $1.28 billion in client commitments to make minority investments in the management companies of established hedge fund firms. The fundraising effort exceeded Dyal's goal of $1 billion, as Dyal assembled a sophisticated global investor base of 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 approximately 12-15 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 investors are expected 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. 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," said 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."
About Neuberger Berman
Neuberger Berman is a private, independent, employee-controlled investment manager. It partners with institutions, advisors and individuals throughout the world to customize solutions that address their needs for income, growth and capital preservation. With more than 1,700 professionals focused exclusively on asset management, it offers an investment culture of independent thinking. Founded in 1939, the company provides solutions across equities, fixed income, hedge funds and private equity, and had $202 billion in assets under management as of September 30, 2012. For more information, please visit our website at www.nb.com.
SOURCE Neuberger Berman