Halcyon Asset Management sold a 20% passive minority stake to Dyal Capital Partners.
Halcyon’s active partners said they will collectively invest more than 80% of the after-tax profits from the sale in the firm’s multistrategy hedge funds for a minimum of three years, according to a letter to Halcyon clients that was obtained by Pensions & Investments.
“We are delighted at this opportunity to align our interests further with those of our clients,” the partners wrote in their letter.
Halcyon managed $12 billion as of Dec. 31 in multistrategy hedge funds with a credit and distressed debt focus, as well as in a long-only senior secured bank strategy for a primarily institutional client base.
Dyal Capital Partners is an institutionally oriented, $1.28 billion private equity fund managed by Neuberger Berman Group that takes 20% passive minority stakes in hedge fund managers.
Alexander Samuelson, a Dyal spokesman, confirmed the fund’s acquisition of a passive minority interest in Halcyon Asset Management but declined to comment about the terms of the deal.
John M. Bader, Halcyon's chairman, chief investment officer, portfolio manager and managing principal, also declined to comment.
Halcyon Asset Management is the sixth hedge fund investment from Dyal’s portfolio; the five preceding investments were in Capital Fund Management, MAST Capital Management, Pinnacle Asset Management, Scopia Fund Management and MKP Capital Management.