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DLJ spinout holds interim close

Diamond Castle Partners, which spun out of DLJ Merchant Banking last year, has held an interim close of $568m, according to SEC documents.

The DLJ Merchant Banking spinout Diamond Castle Partners has held an interim close on its debut fund, according to SEC documents, corralling a total of $568 million on the $2.5 billion (€2.1 billion) targeted vehicle.

New York-based Diamond Castle was formed when Lawrence Schloss left Credit Suisse First Boston’s buyout arm DLJ Merchant Banking in 2004. The former DLJ chairman brought Michael Ranger, David Wittells, Andrew Rush and Ari Benacarraf with him to the new firm.

Diamond Castle is not the only group with Credit Suisse DNA currently fundraising. Avista Capital Partners, another spinout from DLJ Merchant Banking headed by Thompson Dean is also reported to be raising a $2 billion-plus fund, while DLJ Merchant Banking, headed by Steven Rattner, is set to begin fundraising with reports indicating that the group will be seeking north of $1 billion. All three of the new funds will come in substantially below the last vehicle from DLJ, its $5.3 billion third fund.

The debut Diamond Castle fund, Diamond Castle IV LP, is seeking $2.5 billion according to SEC documents. The firm has set a minimum investment of $10 million. Lazard Freres & Co. is serving as placement agent for the fundraising.

According to the SEC documents, Diamond Castle will collect an annual management fee of 1.5 percent, based on the anticipated $2.5 billion close.