Ares Management and CPPIB will hold an equal ownership while the company’s management, including CEO Karen Katz, will retain a minority stake. The transaction is expected to close in the fourth quarter.

CPPIB private investments senior vice president Andre Bourbonnais said that the retailer would continue on a "business as usual" track, focused on strengthening its online retail business and looking for opportunities to expand the brand geographically.

"There are no immediate plans" to expand in Canada, he said. But Neiman would keep studying "when it’s advisable to come to Canada," Bourbonnais added.

Earlier, Nordstrom announced that it would open its first four Canadian stores in the fall of 2014.

The sale comes just weeks after Hudson’s Bay agreed to acquire US luxury department store chain Saks for $2.4bn.

Ares senior partner and co-head David Kaplan said, "This investment fits with our longstanding approach of accelerating growth in companies in the consumer and retail sectors."

Neiman Marcus, led by private equity firms TPG Capital and Warburg Pincus since 2005, presently operates 41 namesake department stores along with the Bergdorf Goodman store on Manhattan’s Fifth Avenue and the Last Call outlet chain.

Its upscale online retailing division operates under the Neiman Marcus, Bergdorf Goodman, Last Call and Horchow brand names.