Neuberger Berman Unit Invests In Volatility Hedge Fund Capstone

Jun 4 2013 | 11:38am ET

Neuberger Berman Group's private-equity fund of hedge funds is back in action, buying 20% of Capstone Investment Advisors.

The firm's Dyal Capital Partners paid $60 million for the minority stake, its seventh such investment in a hedge fund manager. As with the other hedge funds in its portfolio, Dyal will be a passive investor in Capstone, one of the largest volatility hedge funds in the industry. Most of the proceeds of the sale will be invested in Capstone's flagship Vol Fund, which debuted in 2007 and which has averaged double-digit returns.

"This investment enables us to further align ourselves with our fund investors by placing a greater amount of our net worth in our fund," CEO Paul Britton said.

The deal is Dyal's first since it bought four hedge fund stakes in December: Halcyon Asset Management, MKP Capital Management, Pinnacle Asset Management and Scopita Fund Management. The unit also owns stakes in Capital Fund Management and Mast Capital Management, and hopes to eventually have a portfolio of between 12 and 15 established managers.

Dyal closed in December with $1.28 billion in commitments.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...