Dean leaving CSFB to start $2bn fund

DJL Merchant Bank head Thompson Dean is reportedly leaving the bank with 15 employees to start his own fund, scuttling plans for DLJ Merchant Banking Partners IV.

Thompson Dean, head of the leveraged buyout unit at Credit Suisse First Boston, is reportedly starting his own fund, according to Bloomberg. Dean is taking 15 colleagues with him and is hoping to raise a $2 billion (€1.5 billion) fund, Bloomberg said.

According to the report, Houston-based partner Steven Webster, OhSang Kwon, David Durkin, Larry Pickering, David Burgstahler and Jimmy Finkelstein will join Dean at the new fund.

The move comes after CSFB shelved plans to raise $3 billion for DJL Merchant Banking Partners IV, a new LBO vehicle it had been marketing since September.

Dean joined DLJ Merchant Banking, CSFB’s buyout arm, in 1988. Its current fund, DLJ Merchant Banking Partners III, closed at $5.3 billion and is 90 percent invested.

Late last year, CSFB announced that it was spinning off DLJ Merchant Banking Partners, amid complaints from its private equity clients.

The move by CSFB came after a number of large leveraged buyouts firms, having lost to DLJ in the auction for Warner Chilcott, reportedly told the investment bank that they did not appreciate being outbid by a CSFB private equity vehicle when they were paying the bank millions of dollars in fees.

Earlier this year, global financial giant JP Morgan Chase also decided to spin out JP Morgan Partners, its large private equity arm with approximately $13 billion of capital under management, into an independent unit once it has finished investing its current $6.5 billion Global Fund.