- DLJ Merchant Banking Partners
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DLJ Merchant Banking Partners Type Affiliate of Credit Suisse Industry Private equity Successor Spinouts: Avista Capital Partners, Diamond Castle Holdings Founded 1985 Founder(s) Donaldson, Lufkin & Jenrette Headquarters New York City, New York, United States Key people Head of DLJMB
Nicole Arnaboldi, Managing Director, Steven C. Rattner (former)Products Financial services Total assets $12 billion[1] Website DLJ Merchant Banking Partners DLJ Merchant Banking Partners (DLJMB) is a private equity investment firm focused on leveraged buyout transactions. The firm is currently an affiliate of Credit Suisse and traces its roots to Donaldson, Lufkin & Jenrette, the investment bank acquired by Credit Suisse First Boston in 2000. DLJ Merchant Banking Partners operates under an affiliated model together with its investment banking business.[2]
Under the DLJ and Credit-Suisse umbrella, the private equity arm also manages a group of investment vehicles including Real Estate Private Equity, International Private Equity, Growth capital, Mezzanine debt, Infrastructure, Energy and Commodities Focused, Fund of Funds, and Secondary Investments.
DLJMB has offices in New York, London, Los Angeles, and Detroit.
Contents
History
DLJMB was founded in 1985 to invest capital in leveraged buyouts alongside private equity firms that were DLJ clients, off of the bank's balance sheet as well as capital contributed by employees. In 1992, the firm raised its first institutional private equity fund (DLJ Merchant Banking Partners, LP) with $1 billion in investor commitments. In the firm raised its second fund with $3 billion in investor commitments in 1997 and three years later in 2000 raised its largest fund to date at $5.3 billion.
After the acquisition of DLJ, the group, which was led by Thompson Dean and Larry Schloss faced significant turnover. In 2004, DLJMB co-head Larry Schloss, completed a spinout from DLJMB to form a new private equity firm, Diamond Castle Holdings.[3] The following year, in 2005, a team of professionals, led by Thompson Dean and Steven Webster, completed a spinout of DLJMB to form a new private equity firm, Avista Capital Partners, which raised its own $2 billion fund in 2007.[4]
Six years after its previous fund, in 2006, the firm was able to raise $2.1 billion in investor commitments for DLJ Merchant Banking Partners IV, LP -- more than doubling the $1.0 billion the company was reportedly seeking due to high investor interest. The firm is reportedly seeking to raise an its fifth fund in 2009-2010, which targets $3.5 billion in investor commitments.
In 2008, Nicole Arnaboldi was named head of the firm after Steven C. Rattner resigned in the middle of fundraising for its fifth fund.[5]
DLJMB, is one of the only remaining affiliates, subsidiaries or businesses of Credit Suisse that still retains the DLJ brand name.
Examples of Current and Prior Investments
- Neiman Marcus - Specialty retailer of apparel and accessories
- MGM - Producer of motion pictures, TV programming, and other media, music, and merchandise
- Advanstar - Provider of marketing solutions for business professionals and consumers
- Accellent - Provider of manufacturing and design services to medical device makers
- HealthMarkets - Life and health insurance company
- Nuveen Investments - Investment management and financial services company
- Rockwood Holdings - Manufacturer of specialty chemicals and materials
- Geokinetics - Provider of seismic data services
- Symetra Financial - Life and health insurance company
- NIBC Bank - Asset management and financial services firm
- Education and Adventure Travel Group - Asset management and financial services firm
- Guala Closures Group - Manufacturer of closures for consumer products and industrial companies
- Den-Mat Holdings - Producer of cosmetic and restorative dental products
- Wastequip - Manufacturer of waste management equipment and products
- Deffenbaugh Industries - Environmental and facilities services company
- Specialized Technology Resources - Manufacturer of solar encapsulants, for the photovoltaic solar module industry & provider of quality assurance services for general consumer merchandise.
- RathGibson - Manufacturer of industrial and machinery products
- Total Safety U.S. - Provider of safety service solutions to the industrial markets
See also
Notable current and former employees
- Nicole Arnaboldi
- Steven C. Rattner
References
- ^ Thomson Reuters reports that DLJMB controls approximately $12 billion of assets under management. [1]
- ^ This model is employed by other investment banks, such as Goldman Sachs' Goldman Sachs Capital Partners.
- ^ Moore, Heidi N. DLJ: Wall Street’s Incubator Wall Street Journal, March 10, 2008
- ^ Avista fund challenges Credit Suisse Buyouts, June 14, 2007. Cached version
- ^ On Wall Street, Reputation Is Fragile. New York Times, August 5, 2008
External links
- DLJ Merchant Banking Partners (company website)
- Diamond Castle (company website) - 2004 spin-out led by Larry Schloss
Private equity and venture capital investment firms Investment strategy History History of private equity and venture capital · Early history of private equity · Private equity in the 1980s · Private equity in the 1990s · Private equity in the 2000sInvestors Institutional Investors · Pension funds · Insurance companies · Endowments · Investment Banks · Merchant banks · Fund of funds · High net worth individuals · Angel investors · Family offices · Sovereign wealth fundsPrivate equity firms · Venture capital firms · Portfolio companiesMerchant banking private equity groups (current and prior) ABN Amro: AAC Capital Partners · Bank of America: BAML Capital Partners · Barclays Capital: Barclays Private Equity · Bear Stearns: Irving Place Capital (fka BSMB) · CIBC World Markets: Trimaran Capital Partners · Citigroup: Metalmark Capital · Court Square Capital Partners · CVC Capital Partners · Credit Suisse: DLJ Merchant Banking · Avista Capital Partners · Diamond Castle Holdings · Deutsche Bank: MidOcean Partners · First Chicago Bank (defunct): Madison Dearborn Partners · GTCR · Goldman Sachs: Goldman Sachs Capital Partners · JPMorgan Chase: CCMP Capital (fka JPMorgan Partners) · One Equity Partners · Lazard: Lazard Alternative Investments · Lehman Brothers (defunct): Trilantic Capital Partners · Morgan Stanley: Metalmark Capital · Morgan Stanley Capital Partners · UBS: UBS Capital · Affinity Equity Partners · Capvis · Lightyear Capital · Wells Fargo: Norwest Venture Partners · Pamlico Capital · William Blair & Company: Chicago Growth Partners · William Blair Capital Partners
List of investment banking private equity groupsCategories:- Private equity firms of the United States
- Investment banking private equity groups
- Companies established in 1985
- Companies based in New York City
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