Dyal Capital Partners III, a fund managed by Neuberger Berman, has purchased a minority stake in global private equity and alternative asset investment firm H.I.G. Capital for an undisclosed sum.
Dyal bought a passive non-voting stake that represents less than 15% of the economic interests of the firm.
Dyal Capital Partners head Michael Rees said: "We are excited to partner with what we believe is the leading player in the middle and lower mid-market. H.I.G. has a highly differentiated business model, combining a focus on inefficient market segments and real operational value-added expertise. Its performance track record is truly impressive."
H.I.G. Capital intends to use the proceeds from the stake sale to boost its investments in its own funds and finance various growth initiatives.
Commenting on the deal, H.I.G. founders and co-CEOs Sami Mnaymneh and Tony Tamer said: “This is an important milestone in the development of the firm. Having access to permanent capital will allow us to more quickly and effectively achieve the firm's strategic growth objectives."
H.I.G. manages funds across private equity, credit, and real estate strategies in the US, Europe, and Latin America. The firm employs over 500 staff across the globe, and manages over $20bn in equity capital.