Neuberger Berman’s Dyal Capital, which acquires passive stakes in private equity firms and hedge fund management companies, announced Monday that its fourth fund closed with a total of $9 billion to deploy. According to Dyal, this is its largest fund to date.
The fund, which was “heavily oversubscribed” by $3.5 billion, according to the announcement, has already made ten investments and plans to make five more.
“As the private equity industry continues to grow and evolve, we want to remain the go-to strategic partner for established firms,” said Michael Rees, head of Dyal Capital, in a statement.
This raises the question of which firms will get the remainder of fund IV’s investments. The next five private equity firms Dyal invests in will be “diversified by asset class, strategy, and geography,” according to its announcement.
Dyal has already committed 64 percent of fund IV’s capital, according to its announcement.
It has invested in credit funds HPS Investment Partners, Arcmont Asset Management, middle-market and late-stage lender Golub Capital, and direct lending platform Owl Rock.
Dyal has also invested in private equity funds Bridgepoint, American Securities, Clearlake Capital Group, H.I.G. Capital, and HGGC, as well as I Squared Capital, an infrastructure investment fund.
“Fund IV’s objective is to provide passive, minority equity capital for building balance sheet capital and enabling leading firms to invest more capital alongside their investors,” its announcement said.
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Investors in the fund included sovereign wealth funds, public and corporate pension plans, endowments, foundations, and family offices, according to the announcement. Just over half of the capital invested comes from the Americas, while more than one-third of committed capital comes from Asia, the announcement said.
A quarterly report published in September 2018 shows that the Minnesota State Board of Investment committed $250 million to Dyal’s fourth fund.
Dyal Capital has a total of $21.6 billion in aggregate commitments, its announcement said.
