Neuberger Berman Fund Buys Pinnacle Stake

Dec 17 2012 | 11:11am ET

Dyal Capital Partners, Neuberger Berman Group's private equity fund of hedge fund firms, has a new manager in its stable.

The fund, which closed earlier this month to new investments with $1.28 billion in commitments, took a passive minority stake in commodities hedge fund Pinnacle Asset Management, it said. New York-based Pinnacle's current management team will remain in place with control of its business operations and investment process.

"Given the unique and successful way the Pinnacle team invests in commodities, we believe that the partnership between our businesses provides tremendous opportunities to both Dyal and Pinnacle," Dyal senior portfolio manager Michael Rees said.

"We believe that this transaction strengthens our ability to serve our institutional investors' needs in commodities investing," Pinnacle chief investment officer Jason Kellman added. "Dyal's institutional scale and global scope makes it a great long-term strategic partner. We are delighted to be working with them."

Pinnacle has about $2.3 billion in assets under management.

Neuberger set up Dyal two-and-a-half years ago to invest in established hedge fund management firms. It also invests in quantitative shop Capital Fund Management, and said earlier this year it expects to close several deals in the next few months. Eventually, the fund is expected to invest in between 12 and 15 firms.

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