Neuberger’s Dyal Capital buys stake in London credit firm

Chenavari Investment Management will continue to be led by Loïc Féry and Frederic Couderc after Dyal’s investment.

Neuberger Berman-owned Dyal Capital Partners has acquired a passive minority interest in the controlling company of Chenavari Investment Management, the alternative asset manager. The size and terms of the stake were not disclosed.

London-based Chenavari will continue to be led by chief executive and co-chief investment officer Loïc Féry and co-chief investment officer Frederic Couderc. They will retain control over the firm’s operations and investment process, their company said.

“We anticipate that this strategic relationship with the Dyal team will strengthen Chenavari's ability to provide institutional investors with leading investment solutions across tradable credit, structured finance and private debt,” Féry said.

Michael Rees, managing director of Dyal Capital, said: “Chenavari is, in our opinion, very well-positioned to benefit from the opportunity set related to European banks’ deleveraging, around investment strategies in credit and private debt markets.”

Chenavari is a group of alternative investment management companies focused on a broad range of credit, structured finance, real estate and private debt strategies. In addition to its London headquarters, the firm has offices in Luxembourg, Hong Kong and New York and manages approximately $5.4 billion.

The firm launched its first European direct lending fund in 2013. This year, Chenavari won a €1.3 billion portfolio of Spanish non-performing residential loans along with Oaktree Capital Management.

Dyal Capital is a private equity fund managed by Neuberger Berman. The firm seeks to acquire minority equity interests in alternative asset management companies worldwide. Dyal is currently raising its Dyal Capital Partners III fund, which is targeting $3 billion and focusing exclusively on private equity stakes.

Earlier this year, Dyal bought a sub-20 percent stake in private equity firm Vista Equity Partners. Last year, the firm also bought a 10 percent interest in Providence Equity Partners, the US private equity firm that also houses a large credit manager, Benefit Street Partners.

Last month, the New Jersey Division of Investment, committed $200 million to Dyal’s third fund. New Jersey has invested with Dyal’s first and second funds as well. According to the pension fund’s documents, the first fund has so far delivered a 15.22 percent net IRR, while the second fund posted a 24.25 percent net return.

Dyal is housed within Neuberger Berman, a New York-based independent investment manager. The firm handles a variety of traditional and alternative strategies, including public equities and fixed income, private equity and hedge funds. Neuberger has about $251 billion in client assets. It spun out from the now-defunct Lehman Brothers bank in 2009.