Neuberger Berman Group's Dyal Capital Partners, which invests in hedge fund managers, has closed to new investments with more than $1 billion in commitments.
The private equity fund raised $1.28 billion from more than 40 institutional investors, Neuberger said yesterday. Dyal had targeted $1 billion in assets.
"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," the fund's head, Michael Rees, said. "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."
Dyal plans to invest in between 12 and 15 established hedge fund firms, buying minority stakes. It has already made two such investments, in quantitative shop Capital Fund Management a year ago, and another undisclosed firm.
The fund said it expects to close several additional deals in the next several months.
Neuberger set up Dyal in the summer of 2010.