Dyal Capital Partners III closes on $5.3bn

During the fundraising period, the fund's target was increased by more than €2bn, according to the GP, which said the fund had been "heavily oversubscribed".

The fund will take non-controlling minority stakes in private equity investment managers to help generate balance sheet capital to achieve strategic goals and to assist with generational transfers.

According to Dyal, its third fund is the largest ever raised to acquire minority interests in private market firms. The fund's capital will be deployed by a global team of 10 investment professionals.

Previous Dyal funds have employed similar strategies with hedge fund management firms. The 2012-vintage maiden fund generated a net IRR of 15.22%, while the 2014-vintage second vehicle recorded a 24.25% IRR, according to an LP with a longstanding relationship with the firm.

Investors
Dyal III is backed by a global investor base that includes sovereign wealth funds, public and corporate pension plans, endowments, foundations and family offices.

Significant investments were made by the Alaska Permanent Fund Corporation, which committed $500m; the New York State Common Retirement Fund, which pledged $285m; and the New Jersey Division of Investments, which committed $200m.

For more LPs, and for insight into the terms of the fund, see the dedicated profile on unquote" data.

Investments
Dyal provides minority equity capital to well-established private equity and hedge fund management companies. The fund's objective is to assist firms with generational transfers and, more often, in the creation of balance sheet capital to help achieve strategic goals.

The fund has made six investments to date, taking stakes in Vista Equity Partners, EnCap Investments, Silver Lake Technology Management, HIG Capital, Starwood Capital Group and KPS Capital.

People
Dyal Capital Partners – Michael Rees, Sean Ward, Mark O’Sullivan (managing directors).

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