Houston-based CAZ Investments made a $1 billion commitment to Dyal Capital Partners V, a GP stakes fund.
The investment by the registered investment advisor marks $3 billion in investments to GP stakes alongside multiple partners, including Dyal. The firm’s two-decades long track record includes investing in short sub-prime, disruptive technology, midstream energy, medical royalties, private credit and notably GP minority investments, as on the largest investors in the world in the space.
“We are excited to expand our partnership with the talented team at Dyal Capital and their well-established expertise,” said Christopher Zook, chairman and CIO at CAZ. “We view GP stakes as an appropriate cornerstone allocation of an investor’s portfolio, based on the rare combination of downside protection, upside optionality and attractive cash flow that this asset class can provide.”
Dyal, a division of Blue Owl, reportedly had a target raise of $9 billion for the latest fund. That was the same amount the firm raised for its previous fund late 2019. The firm has stakes in a wide range of strategies and managers including: American Securities, Atalaya, Bardin Hill, Cerberus, CVC and Golub Capital.
According to CAZ’s Zook, the cash yield in the strategy provides a potential component for a fixed-income alternatives allocation. “Ultimately, we view this strategy as having equity upside with credit-like downside protection and cash flow,” he added.