Dyal Capital Partners Closes Oversubscribed Third Fund At $5.3B

Feb 14 2017 | 7:32pm ET

Neuberger Berman asset management unit Dyal Capital Partners has raised approximately $5.3 billion in capital commitments for its third buyout fund. 

The new fund, named Dyal Capital Partners III (PE), was heavily oversubscribed, the company said in a statement. Originally expected to close near $3 billion, the fund’s target was revised upward by $2 billion during the marketing period. It is the largest fund ever raised to acquire minority interests in leading institutional private market firms.

Like its predecessors, Fund III’s objective is to provide passive capital to assist firms with generational transfers, and more often, in the creation of balance sheet capital to help achieve strategic goals. Fund III in particular will seek to make investments into 10-12 private equity firms diversified by asset class, strategy, and geography, and has made six investments to date. Vista Equity Partners, EnCap Investments, Silver Lake Technology Management, H.I.G. Capital, Starwood Capital Group, and KPS Capital Partners. 

Following the completion of these six transactions, Fund III has committed over 50% of the fund's capital, Dyal added. Investors in the new vehicle consist of global sovereign wealth funds, public and corporate pension plans, endowments, foundations and family offices. 

"We remain optimistic on the role that private market managers will play in the future of the asset management industry,” said Michael Rees, head of Dyal Capital Partners, in the statement. “As the industry continues to grow and evolve, established firms may require strategic capital. We want to provide that capital. We believe that the combination of our experience, the permanent nature of our funds, our dedicated operating team and our ability to customize bespoke solutions will give us an advantage over our competition."

Dyal Capital Partners was formed in 2011 and manages three permanent capital funds containing a total of 20 minority partnerships and more than $8.7 billion in aggregate commitments from 160 unique global investors. Neuberger Berman, meanwhile, was founded in 1939 and is an independent manager of fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide, with AUM of $255 billion as of December 31, 2016.

In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...