BOSTON (Reuters) - Dyal Capital Partners, the Neuberger Berman Group unit that buys minority stakes in hedge and private equity fund firms, has bought a piece of private credit and special opportunities investor Atalaya Capital Management, marking its third investment in three months.
Atalaya, which manages $2.5 billion, said it plans to keep the proceeds from the investment on its balance sheet to expand its capabilities and increase its investments alongside its clients. The firm declined to say how much Dyal paid for the stake but a person familiar with the matter said the stake values the firm at more than $400 million.
“This capital allows us to continue developing our business for the future and invest more in our funds, fostering greater alignment with our investors,” Ivan Zinn, who founded the New York-based firm in 2006 said in a statement.
Dyal, led by Michael Rees, has backed more than two dozen firms totaling some $9 billion in assets, its website says. In April it bought stakes in TSSP, a global credit and credit-related investment firm affiliated with TPG Holdings, and in credit focused hedge fund Sound Point Capital.
It also owns interests in hedge funds Halcyon Capital Management, Jana Partners and Graham Capital Management.
Firms like Dyal, Affiliated Managers Group Inc and Blackstone Group have created lucrative businesses for themselves by buying minority stakes in investment firms at a time the funds’ founders may be looking to cash out or to expand.
Last year, Dyal raised its third fund to take minority stakes in such firms, gathering more than $5 billion in investor commitments.
Reporting by Svea Herbst-Bayliss; Editing by Bernard Orr