The move by the team to become an independent group is being done in part to attain more of the profits and expand the firm. Presently, Credit Suisse owns 49% of DLJ South American Partners; the management team holds a 51% stake. It was agreed that Credit Suisse will hold a reduced stake of 24.9% in the new firm, one person familiar with the situation said.
The Swiss bank invested at least $25 million in the firm’s debut fund, DLJ South American Partners LP, which wrapped up at $300 million in 2008. The fundinvests in Argentina, Brazil and Chile. It is unclear whether Credit Suisse will invest in the next fund. Carlos Garcia and Marcelo Medeiros co-managed DLJ South American Partners LP. Medeiros will have a more limited role with the next fund. He won’t be involved in the day-to-day management of the vehicle, but will serve as a member of theinvestment committee and as an adviser.
Medeiros recently decided to team up with three other professionals including Pedro Moreira Salles, chairman of Brazilian bank Itau-Unibanco, to form a $1 billion investment fund, the Financial Times reported this week. The partners will use their own money rather than manage third-party capital for investment in companies. Garcia will serve as chief executive of Victoria Capital Partners. Meanwhile, Mario Spinola, a partner at DLJ South American Partners, will take a leading role in Brazil as part of the new firm, said people familiar with the matter. The firm, with offices in Sao Paulo and Buenos Aires, is getting closer to marketing its next fund as it nears the 75% investment threshold on the debut vehicle that is required to start fundraising for a new offering.
DLJ South American Partners LP is about 70% invested, said one person familiar with situation. (Dow Jones Private Equity Analyst covers fund-raising and other news of interest to the private-equity community.)
-By Sabrina Willmer, Dow Jones Private Equity Analyst;