Dyal Capital Partners, Neuberger Berman’s GP stakes unit, is expecting to collect more than $7 billion for Fund IV, sister publication Private Equity International has learned.
Dyal was initially targeting $6 billion and is likely to raise significantly more after completing six deals from the vehicle last year, according to a source with knowledge of the firm. Fund IV is expected to close later this quarter.
The firm 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.
Other firms active in this segment of the market include Blackstone and Goldman Sachs, who also have vehicles dedicated to the strategy.
AlpInvest Partners cancelled its fundraising process for acquiring GP stakes amid a string of departures from its “partnership” fund team, PEI reported in January. The Amsterdam-headquartered firm no longer has plans to raise a dedicated pool of capital for the strategy.
Some market participants have suggested GP interest transactions may become dealflow for secondaries buyers. Dyal and other firms using similar strategies could be attractive due to the diversification they offer through exposure to the manager’s various funds and underlying assets.