Neuberger Berman's Dyal Capital Acquires Position in H.I.G. Capital

Aug 4 2016 | 5:02pm ET

Dyal Capital Partners has bought a minority stake in middle-market private equity firm H.I.G. Capital, the latest in a string of acquisitions made by the company in the asset manager space.

Under the terms of the transaction, Dyal’s Dyal Capital Partners III vehicle has acquired a passive non-voting stake, representing less than 15% of the economic interests of the firm, according to a statement. Dyal is a unit of Neuberger Berman. 

Terms of the transaction were not disclosed, but the deal reportedly values H.I.G. at around $4.5 billion, according to a Wall Street Journal article citing unidentified individuals familiar with the matter. Proceeds will used to increase H.I.G’s investments in its own funds and to seed and fund a number of growth initiatives. 

"We are delighted to welcome Dyal to the H.I.G. family,” said Sami Mnaymneh and Tony Tamer, founders and co-CEOs of H.I.G., in a statement. “This is an important milestone in the development of the firm. Having access to permanent capital will allow us to more quickly and effectively achieve the firm's strategic growth objectives."

"We are excited to partner with what we believe is the leading player in the middle and lower mid-market,” added Michael Rees, head of Dyal Capital Partners. “H.I.G. has a highly differentiated business model, combining a focus on inefficient market segments and real operational value-added expertise. 

Founded in 1993 and based in Miami, H.I.G. is a leading global private equity and alternative assets investment firm with over $20 billion of equity capital under management deployed across private equity, growth equity, real estate, debt/credit, lending and life sciences vehicles. The firm’s private equity activities have invested in and managed more than 300 companies worldwide since inception.

Dyal Capital Partners was started in 2011 and manages three permanent capital funds containing a total of 18 minority partnerships. The Neuberger Berman unit acquires minority equity interests in institutional alternative asset management businesses worldwide.

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