New Neuberger Private Equity Fund To Invest In Hedge Fund Managers

Jul 19 2010 | 1:34pm ET

Neuberger Berman Group has launched a private equity fund that will invest in hedge fund firms.

The firm, which spun off from Lehman Brothers last year, has tapped Michael Rees and Andrew Komaroff, two Neuberger executives who worked in a Lehman unit that also invested in hedge fund managers before the investment bank collapsed two years ago, to head Dyal Capital Partners. Neuberger said in a regulatory filing that it has already raised $150 million for Dyal, which will be similar to Goldman Sachs’ Petershill fund, which has taken minority stakes in six hedge fund firms, including Capula Investment Management, Level Global Investors and Winton Capital Management.

Dyal plans to invest in between 12 and 15 hedge fund firms. But the fund is not looking to seed startups, instead focusing on hedge funds that already manage between $1 billion and $6 billion, particularly those that boast major pension funds as clients. Dyal will take a share of each manager’s fee income, and is targeting annual returns of 25% or more, Bloomberg News reports.

At Lehman, Rees and Komaroff were part of a group that invested about $2 billion in some of the biggest names in the hedge fund industry, taking minority stakes in D.E. Shaw Group, GLG Partners, Marble Bar Asset Management, Ospraie Management and Spinnaker Capital Group.

The minimum invested requirement in Dyal is $10 million.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...