Dyal Capital Partners Takes Minority Stake in Cerberus Business Finance

Jan 2 2018 | 12:59pm ET

Neuberger Berman affiliate Dyal Capital Partners has taken a strategic minority stake in Cerberus Business Finance, the middle-market lending platform of $30 billion alternative asset manager Cerberus Capital Management. 

Terms of the transaction, including the size of Dyal’s stake in credit manager, were not disclosed, although the company has typically taken positions of between 10% and 20%. The investment is coming from Dyal’s Capital Partners III fund, which raised $5.3 billion in February 2017 and is among the largest vehicles ever formed to acquire minority interests in leading institutional private market firms.

The Dyal stake is passive and non-voting, according to a statement, and will not result in any changes to the day-to-day management or operations of Cerberus Business Finance, which currently manages approximately $14 billion deployed primarily into sponsor-backed middle-market direct lending activities. The company has completed more than 145 transactions in the past two years totaling $10.7 billion of credit facilities. 

Dyal Capital Partners was formed in 2011 and manages nearly $9 billion across three permanent capital funds containing a total of 26 minority partnerships in institutional alternative asset management businesses worldwide, including such well-known names as Halcyon Capital Management, Jana Partners, Graham Capital Management, H.I.G. Capital, Chenavari and Vista Equity Partners.

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