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Firm

Dyal Capital Partners Sets Record With $9.0 Billion Fund IV

December 2, 2019

NEW YORK, December 2, 2019 -- Dyal Capital Partners (“Dyal”), a division of Neuberger Berman, announced the final closing of Dyal Capital Partners IV (“Fund IV”) with over $9.0 billion of committed capital. 

Dyal closed Fund IV on October 31, 2019, and increased the target fund size by over $3.5 billion during the marketing period, as investment opportunities increased and investor interest in the strategy grew. As with Dyal’s previous fund, Fund IV was heavily oversubscribed at the final close.

Aggregate commitments across all Dyal funds and co-investment vehicles now total more than $21.6 billion, solidifying Dyal’s position as the leading provider of minority equity capital to well-established private equity and hedge fund management companies. Dyal has formed minority partnerships with 41 firms.

Fund IV eclipses its predecessor, Dyal Capital Partners III (PE), as the largest fund ever raised to acquire minority interests in leading institutional private market firms. 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. Ultimately, Fund IV will seek to make investments in approximately 15 private equity firms diversified by asset class, strategy, and geography.

Fund IV has made investments in ten firms to date: H.I.G. Capital, Clearlake Capital Group, HPS Investment Partners, Golub Capital, Bridgepoint, American Securities, HGGC, I Squared Capital, Arcmont Asset Management, and Owl Rock. With these transactions, Fund IV has committed approximately 64% of the fund’s capital.

Commenting on the close, Michael Rees, Head of Dyal Capital Partners said, “As the private equity industry continues to grow and evolve, we want to remain the go-to strategic partner for established firms. We believe that no one else offers our combination of permanent capital, a large and diverse operating team, and the experience of customizing bespoke solutions across our partners’ capital structures.”

Fund IV will be deployed by a global team of 14 investment professionals, including a senior team that has worked together for over a decade. Dyal is more than just a financial partner to alternative asset managers. All of Dyal’s partners have access to its 26-person Business Services Platform, an advisory team of industry professionals who support the partners’ business objectives in a variety of areas, including capital strategy, product development, talent management, operations, infrastructure, technology, corporate strategy and preferred provider arrangements with third-party service providers.

Fund IV is backed by a global investor base that includes sovereign wealth funds, public and corporate pension plans, endowments, foundations, and family offices. Approximately 51% of the capital comes from the Americas and more than a third comes from Asia, reflecting the broad geographic appeal of Dyal’s investment strategy.