Dyal Capital Partners acquired a minority stake in credit hedge fund manager Waterfall Asset Management, confirmed Dyal spokesman Alexander Samuelson.
Waterfall manages about $2.3 billion and will continue to be led by co-founders and principals Jack Ross and Tom Capasse, who retain control of business operations and investment process.
Mr. Samuelson said terms of the deal are not being disclosed. Dyal is taking a minority passive ownership interest. It acquired the stake from M.D. Sass-Macquarie Financial Partners, a private equity fund managed by M.D. Sass-Macquarie Financial Strategies.
Dyal Capital Partners is an institutionally oriented, $1.28 billion private equity fund managed by Neuberger Berman Group that generally takes 20% passive stakes in hedge fund managers.
Waterfall is the eighth hedge fund investment from Dyal's portfolio.