Dyal Capital Partners

Dyal Capital Partners, originally a distinguished unit within Neuberger Berman Private Equity, established itself as a leading investor in the alternative asset management industry. Its unique strategy centered on acquiring passive, minority equity stakes in well-established alternative investment firms, including hedge funds, private equity funds, and credit managers. This approach provided a crucial avenue for founders and partners of these firms to achieve liquidity, facilitate succession planning, or secure growth capital without relinquishing control over their operations. Dyal's model was highly attractive to mature managers seeking long-term, stable capital partners.

The firm's investment thesis focused on partnering with managers demonstrating consistent performance, robust infrastructure, and strong growth prospects. Dyal typically acquired stakes ranging from 10% to 20% in these management companies, becoming a strategic, non-controlling partner. Over its operational history, Dyal successfully raised several substantial funds, underscoring investor confidence in its specialized strategy. For instance, its Dyal Capital Partners IV fund, which closed in 2019, successfully raised an impressive $9 billion, highlighting the significant capital deployed by the firm.

Dyal Capital Partners was known for deploying substantial capital into each of its portfolio firms. Its typical investment size ranged significantly, with individual commitments generally falling between $100 million and $1 billion. These substantial first cheques enabled Dyal to acquire meaningful, albeit minority, positions in some of the world's most prominent alternative asset managers. This strategy allowed Dyal to build a diversified portfolio of high-quality, fee-generating businesses. In a significant industry development, Dyal Capital Partners ultimately merged with Owl Rock Capital Group in 2021 to form Blue Owl Capital, a publicly traded alternative asset manager, solidifying its legacy within the broader financial landscape.