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Neuberger Berman Unit Buys Stake in Vector Capital

Dyal Capital Partners, which acquires stakes in alternative asset managers, will help Vector expand its credit business.

  • By Alicia McElhaney

Dyal Capital Partners, a unit of asset manager Neuberger Berman, has acquired a minority stake in private equity firm Vector Capital.

Vector announced the deal Wednesday without disclosing a purchase price. Dyal, which seeks to acquire minority equity interest in alternative asset managers, will own less than 10 percent of Vector, according to a person familiar with the matter.

“This investment, which builds on our 20-year relationship with Neuberger Berman, provides Vector with permanent capital to strengthen our private equity business and further accelerate the growth of our credit business,” said Alex Slusky, founder and chief investment officer of Vector, in the firm's statement on the deal.

Vector, which has $3.8 billion of assets under management, has been expanding its credit division amid rising investor appetite for private debt. The firm's credit group manages $250 million in assets, according to the person familiar with the deal.

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Vector was founded in 1997, when it spun out of family office Ziff Brothers Investment. According to the firm's website, Vector's credit business was started in 2008 and typically provides $5 million to $50 million of financing, though it can offer as much as $150 million. Many of its deals are for borrowers with ties to the technology sector, where Vector has roots.

Dyal Capital, which has stakes in firms with more than $400 billion in assets combined, seeks to invest in managers of hedge fund and private equity strategies. Other recent deals include investments in the lending business of Cerberus Capital Management and Atalaya Capital Management, according to Dyal's website.

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