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Neuberger Berman buys stake in Star Capital fund

The private equity arm of Neuberger Berman has bought a stake in a $581m buyout vehicle, according to a UK regulatory filing.

NB Alternatives Group, the fund of funds, secondary and co-investments business arm of Neuberger Berman, has bought a stake in a Star Capital Partners fund, according to a UK regulatory filing.

NB Alternatives bought a portion of a stake from The Regents of the University of California in Star II UK, according to the filing. Star II UK is a $581 million vehicle that made its first investment in 2010, according to PEI’s Research and Analytics division.

The deal was completed on 30 June.

The University of California’s endowment fund previously bought a stake in Star II from UK bank Northern Rock in 2012, according to another UK regulatory filing. It wasn’t clear why the endowment fund decided to sell its interest in the fund.

Star Capital is a private equity fund targeting companies in sectors including oil and gas, energy, telecommunications, transportation and healthcare.

In February 2014, Star Capital’s chief executive told Secondaries Investor’s sister publication Infrastructure Investor the firm was considering moving away from closed-ended funds so it could hold on to assets for longer than the required fund life-cycles, due to the poor investment climate at the time.

Other investors in Star II include San Francisco Employees’ Retirement System and Australia’s Statewide Superannuation Trust, according to PEI’s Research and Analytics division.

NB Alternatives bought the stake through its NB Secondary Opportunities Fund III, a 2012-vintage $2 billion vehicle that closed above its $1.6 billion target in 2013 after 19 months of fundraising. This vehicle was the second largest fund to close in 2013 and aims at acquiring fund stakes on the secondaries market globally.

NB Alternatives and Star Capital were not immediately available to comment. The Regents of the University of California did not reply to a request for comment.