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CSFB closes mega secondary fund

The private equity arm of Credit Suisse First Boston has closed its third secondary fund on $2.4 billion to invest in buyout, venture capital and real estate partnerships.

CSFB Strategic Partners III, the latest secondary fund vehicle of Credit Suisse First Boston Private Equity, has held a final close on $2.4 billion (€1.9 billion).

CSFB will for the first time make an allocation to venture capital funds, setting aside $210 million for the strategy.

It is one of the largest private equity secondary funds ever raised, second in size only to the $2.6 billion vehicle currently being invested by Coller Capital.
 
The fund, which will acquire private equity limited partnership interests as opposed to making direct investments, will focus predominantly on the buyout sector. Approximately $1.9 billion of its capital will be used for LBO fund interests, according to a report in The Deal.
 
In addition, CSFB will for the first time make an allocation to venture capital funds, setting aside $210 million for the strategy. The remaining $315 million of the fund’s capital is earmarked for investment in private equity real estate funds.
 
The fund received support from existing investors Pennsylvania Public School Employees’ Retirement System and New York State Teachers’ Retirement System, according to The Deal.
 
CSFB Strategic Partners III is the successor to the firm’s second, $1.6 billion

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secondary fund that was closed in 2003. The fund will be invested by a team headed by Stephen Can who is based in New York.
 
The strategic partners team is part of CSFB’s broad, global private equity operation. Other divisions include hedge funds, CDO funds, real estate and mezzanine vehicles, as well as the bank’s direct buyout arm, DLJ Merchant Banking Partners (DLJMBP).

Earlier this year, DLJMBP outlined plans to continue overseeing its portfolio and raise a new fund, following the departure of former head Thompson Dean. The group, which is operating in North America and Europe, is currently mulling a $2 billion IPO of Italian eyewear maker Safilo, in which it acquired a $350 million stake in December 2002.