PRINT THIS PAGE Credit Suisse First Boston closes secondaries funds with $1.9bn of commitments05/12/2003. Source: AltAssets. 
 Credit Suisse First Boston (CSFB) has completed fundraising for a new $1.625bn secondary private equity fund, adding to its $31bn in private equity funds under management. CSFB Strategic Partners is the third largest secondaries fund ever raised.
CSFB has also closed a $300m fund, Strategic Partners II RE, which will invest along side the mainstream private equity fund in secondary real estate investments.
The two secondaries funds have already invested in more than 70 leveraged buy-out and real estate funds, using approximately 30 per cent of the committed capital. One of the fund’s most high profile acquisitions came in May, when Swiss Private Equity Holding sold the firm the majority of its portfolio for SFr616m. Deutsche Bank also sold a $400m portfolio to CSFB.
Secondary transactions have become increasingly common as investors in private equity seek to exit their commitments in the face of sluggish returns and declines in the value of underlying investments. Some of them, banks in particular, have also dramatically reversed their policy of the late 1990s of building a big private equity portfolio.
Recent fundraising successes, such as CSFB’s close, provide further evidence of the growing popularity of the secondaries sector. Coller Capital closed its fourth dedicated secondaries fund on $2.5bn in November last year having originally set a target of $1bn, and US Lexington Partners closed its latest fund on $2bn.
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