CSFB is to lose its global private equity head Larry Schloss following his decision to resign in four months’ time and pursue other opportunities.
The bank’s co-chief executive John Mack said in an internal memo Schloss was leaving “to explore new entrepreneurial opportunities in the private equity investment and asset management businesses” – leaving open the intriguing possibility that he may launch his own private equity fund next year.
New York-based Schloss oversees the largest private equity operation in the world, with over $31bn of funds under management in a range of investment categories including leveraged buyouts, mezzanine, real estate and venture capital.
“He will remain in his current roles through the first quarter of next year and our talented team of managers will continue to run our private equity funds, all of which have standalone management structures, and oversee individual portfolio investments,” said Mack in the memo.
Schloss joined CSFB in November 2000 when its merged with DLJ, where he had spent the previous 22 years, latterly as managing director and chairman of DLJ Merchant Banking Group. One of his most notable recent achievements was overseeing the E5.3bn fundraising for the DLJ Merchant Banking Partners III fund in late 2001 which, at the time, was the largest buyout vehicle ever raised.
CSFB Private Equity has recently appeared to shift its focus more towards Europe and away from the US to take advantage of what it perceives to be more attractive opportunities. The maximum allocation to Europe from its latest buyout fund was recently raised from a quarter to a third of the total. In addition, former Los Angeles-based managing director Susan Schnabel last month moved to London to become European co-head alongside Colin Taylor.
There is no official word yet on a possible successor to Schloss. Mack said the private equity division would continue to report to CSFB co-presidents Brady Dougan and Brian Finn.