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Dyal Capital Near Deal for Stake in Infrastructure Investor I Squared

Heather Perlberg, Gillian Tan and Sonali Basak

(Bloomberg) -- Neuberger Berman’s Dyal Capital Partners is nearing a deal for a minority investment in infrastructure firm I Squared Capital, according to people familiar with the matter.

The transaction hasn’t been finalized and both sides may decide against the deal, said the people, who asked not to be named because the information is private. The size of the stake couldn’t immediately be determined.

The business of selling private equity stakes is burgeoning as it allows founders to pare back their ownership. It also gives firms capital to invest in future funds or new strategies. Dyal, Blackstone Group Inc. and Goldman Sachs Group Inc.’s Petershill unit have raised multibillion-dollar funds to acquire minority stakes in alternative asset managers. Blackstone has plans to raise a second such fund.

A Dyal representative declined to comment. A representative for Miami-based I Squared didn’t respond to requests for comment.

Dyal, based in New York, has been adding to its stable of holdings recently. It has completed 41 equity transactions in the past decade and managed about $20.3 billion as of June 30. In March, it acquired a passive minority stake in HGGC, a technology-focused private equity firm.

I Squared -- led by Sadek Wahba, Adil Rahmathulla and Gautam Bhandari -- hired an executive for credit investments, a new initiative for the firm, Bloomberg reported in June. Last year, it raised $7 billion for its second infrastructure equity fund.

To contact the reporters on this story: Heather Perlberg in Washington at hperlberg@bloomberg.net;Gillian Tan in New York at gtan129@bloomberg.net;Sonali Basak in New York at sbasak7@bloomberg.net

To contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Josh Friedman

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