DLJ Merchant Banking Partners
Encyclopedia
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.
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.
s 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
. 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.
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.
DLJMB, is one of the only remaining affiliates, subsidiaries or businesses of Credit Suisse that still retains the DLJ
brand name.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investment firm focused on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions. The firm is currently an affiliate of Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
and traces its roots to Donaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
, the investment bank acquired by Credit Suisse First Boston
Credit Suisse First Boston
Credit Suisse First Boston was the former name of the banking firm Credit Suisse.-History:In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston...
in 2000. DLJ Merchant Banking Partners operates under an affiliated model together with its investment banking business.
Under the DLJ and Credit-Suisse umbrella, the private equity arm also manages a group of investment vehicles including Real Estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
Private Equity, International Private Equity, Growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
, Mezzanine debt, Infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
, Energy and Commodities Focused, Fund of Funds
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
, and Secondary Investments.
DLJMB has offices in New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, and Detroit.
History
DLJMB was founded in 1985 to invest capital in leveraged buyouts alongside private equity firmPrivate equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
s that were DLJ
Donaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
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
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
(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
Donaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
, 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
Diamond Castle Holdings
Diamond Castle Holdings is a private equity firm focused on leveraged buyout and growth capital investments in middle-market companies across a range of industries including the media, healthcare, financial services, power and industrial sectors....
. 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
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm, Avista Capital Partners
Avista Capital Partners
Avista Capital Partners is a private equity firm focused on growth capital and leveraged buyout investments in middle-market companies in the energy, healthcare and media sectors....
, which raised its own $2 billion fund in 2007.
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
Nicole Arnaboldi
Nicole S. Arnaboldi is an American financier and investor at Credit Suisse and DLJ Merchant Banking Partners. She succeeded Steven C. Rattner as the Chairman of the private equity firm in 2008. Arnaboldi is the first and only woman to lead a major buyout shop. In 2008, Arnaboldi was ranked the #1...
was named head of the firm after Steven C. Rattner
Steven C. Rattner
Steven C. Rattner was a Managing Director of Credit Suisse in the Asset Management division and the former Head of its DLJ Merchant Banking Partners affiliate.-Career:...
resigned in the middle of fundraising for its fifth fund.
DLJMB, is one of the only remaining affiliates, subsidiaries or businesses of Credit Suisse that still retains the DLJ
Donaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
brand name.
Examples of Current and Prior Investments
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External links
- DLJ Merchant Banking Partners (company website)
- Diamond Castle (company website) - 2004 spin-out led by Larry Schloss