CSFB raises $1.9bn for secondaries

The investment bank’s private equity group has closed CSFB Strategic Partners II, a $1.625bn private equity secondaries funds, with another $300m available for real estate fund purchases.

(PrivateEquityCentral.net) New York-based CSFB Strategic Partners, the private equity secondary arm of captive manager CSFB Private Equity, has closed its CSFB Strategic Partners II fund on $1.625bn, according to news sources.

CSFB Strategic Partners raised the fund in one year, exceeding the $1.25bn target set last October.

In addition, the group has also closed on $300m for CSFB Strategic Partners II RE, which co-invests alongside the other fund in secondary real estate investments, according to The Deal.

The firm began fundraising just eight months after the closing of CSFB Strategic Partners’ first secondary fund at $832m. The fund is earmarked for purchases in US buyout, mezzanine and international partnership holdings, according to reports. Most of the investors are in the US, although CSFB has only identified Pennsylvania Sate Employees’ Retirement System as an investor. Earlier this year, the New York State Teachers’ Retirement System voted to commit $150m to the fund, according to the system’s web site.

According to reports, the new fund has already acquired stakes in more than 70 different funds and has drawn 30 per cent the of committed capital. CSFB Strategic Partners has not disclosed any specific investment, though major deals have been reported.

In May, Switzerland-based Private Equity Holding, a publicly traded investment company, sold the firm most of its portfolio for SFr616m. In August, Deutsche Bank announced the sale of a $400m portfolio of private equity assets to CSFB Strategic Partners.

CSFB Strategic Partners’ fund is the third-largest secondary fund that has been raised to date. In November 2002, London-based Coller Capital closed its fourth dedicated secondaries vehicle on $2.5bn after setting a $1bn target. In July, New York-based Lexington Partners closed its latest fund on target at $2bn.

CSFB Private Equity, the global private equity arm of Credit Suisse First Boston, is the largest private equity manager in the world, with more than $28bn of assets under management. CSFB Private Equity includes the family of DLJ Merchant Banking funds, the Sprout venture capital funds and the Private Fund Group, a placement agency.