(Bloomberg) -- Blue Owl Capital Inc.’s Dyal Capital arm is in talks to acquire a stake in private equity firm PAI Partners, according to people familiar with the matter. 

Dyal is in preliminary discussions about the potential purchase of a minority holding in PAI, the people said, asking not to be identified discussing confidential information. 

Deliberations are ongoing and there’s still a chance they may falter, according to the people. Representatives for Blue Owl and PAI declined to comment.

Dyal buys stakes in money managers, competing with businesses including Blackstone Inc. Its investments have included some of the most prominent alternative asset managers, such as Silver Lake, Starwood Capital Group and Robert Smith’s Vista Equity Partners. 

Paris-based PAI, led by managing partners Richard Howell, Laurent Rivoire and Frederic Stevenin, manages more than 25 billion euros ($25.6 billion). The firm focuses on the business services, food and consumer, general industrials and health-care sectors, and has backed companies including juice maker Tropicana Brands Group and eye-care company Veonet.

The sale of minority stakes has become a popular source of liquidity for private equity leaders. European firms Permira and Nordic Capital have in recent years sold stakes to Goldman Sachs Group Inc.’s Petershill Partners Plc unit and Ottawa Avenue Private Capital, respectively. 

Blue Owl co-president Michael Rees said on an earnings call this month that Dyal’s fifth fund will likely close later this year with more than $10.5 billion under management. The vehicle “will be a record in the GP stakes industry.”

Blue Owl was formed through last year’s merger of Dyal Capital Partners and Owl Rock Capital.

Read more: Dyal Said to Agree Lead Edge Capital Minority-Stake Purchase

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