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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.