Neuberger Berman's Dyal Capital Partners bought a minority stake in Veritas Capital, a private equity firm with more than $20 billion of assets under management, according to people with knowledge of the matter.
Veritas, run by Ramzi Musallam, invests in companies that are related to government services. That includes aerospace, defense, energy, national security and health care, according to its website. Dyal's stake is about 10%, one of the people said.
Dyal is extending a deal streak after raising its fourth and largest fund last year, at $9 billion. Its fifth fund is expected to be around the same size, said the people, who asked not to be identified discussing private investments. The new fund is nearing its first close at the end of October, one of the people said. The Neuberger unit competes with Blackstone Group and Goldman Sachs Group in the business of taking stakes in asset managers.
Dyal has more than $20 billion under management and stakes in firms including Silver Lake, Vista Equity Partners and Starwood Capital Group.
Veritas raised its first institutional fund in 1998 and has made more than 100 acquisitions. Its assets have grown from about $2 billion at the end of 2012. The firm recently informed investors about the "passive" Dyal minority investment, the people said.
Prior to joining Veritas as a founding member, Mr. Musallam worked at a private equity group led by Jay Pritzker and Boston-based private equity firm Berkshire Partners. He started his career at J.P. Morgan Chase & Co.
Neuberger and Veritas representatives declined to comment.