Dyal Capital Partners, a private equity firm owned by Neuberger Berman, is grabbing a 20 percent stake in hedge fund Jana Partners LLC.
In 2014, Jana was behind two activist campaigns that led to M&A deals. After picking up significant stakes of company stock, Jana championed the sale of Petsmart, which BC Partners agreed to buy for more than $8 billion, and of Safeway, which was purchased by Albertsons for $9.2 billion. The firm has also accumulated activist stakes in car-rental business Hertz Global Holdings Inc. (NYSE: HTZ) and IT services company Computer Sciences Corp. (NYSE: CSC).
New York-based Jana was founded by managing partner Barry Rosenstein in 2001. The firm invests in both debt and equity, and manages about $11 billion in investments. Rosenstein told investors in a letter that the Dyal money will be reinvested in Jana's funds.
Dyal looks to buy minority interests in alternative asset management groups. The New York-based, employee-owned investment manager manages equities, fixed income, private equity and hedge fund portfolios.
Dealmakers expect M&A among financial services to soar over the coming months, according to Mergers & Acquisitions’ Mid-Market Pulse.