Dyal Capital Partners, Neuberger Berman’s GP stakes unit, is expected to collect more than $7 billion for Fund IV, Private Equity International has learned.
Dyal was initially targeting $6 billion but is likely to raise significantly more after completing six deals from the vehicle in 2018, according to a source with knowledge of the firm. Fund IV is expected to close later this quarter.
Dyal declined to comment.
The unit targets 10-20 percent equity stakes in alternative asset management companies, which typically provide it with a 20 percent share of management fees and 10 percent of carried interest. Its 37-strong portfolio includes California tech giant Silver Lake, US equity and debt investor American Securities and multi-asset manager HIG Capital as well as credit managers Golub Capital and TPG Sixth Street Partners.
Fees for the vehicle include a 2 percent management fee, which will step down to 1.5 percent at the earlier of the end of the investment period or once 90 percent of the fund’s capital has been drawn, according to documents from the Minnesota State Board of Investment, which committed $250 million. Fund IV also lists a 20 percent carried interest fee over an 8 percent hurdle rate.
Other firms active in this segment of the market include Blackstone and Goldman Sachs, who also have vehicles dedicated to the strategy.
Carlyle Group’s AlpInvest recently cancelled a fundraising process for acquiring GP stakes amid a string of departures from its “partnership” fund team, PEI reported earlier this month. The Amsterdam-headquartered firm no longer has plans to raise a dedicated pool of capital for the strategy.