NEW YORK, Nov. 6, 2013 – Credit Suisse has announced a definitive agreement to spin off its DLJ Investment Partners business (“DLJIP”), a move that includes the transition of the existing investment team, led by Igor DaCosta and Charles Harper, to Portfolio Advisors, LLC. This strategic decision marks a significant shift for Dlj Real Estate Capital Partners, positioning it for continued growth under new management.
Portfolio Advisors, an independent firm renowned for its expertise in private equity, private credit, and real estate investment solutions, will assume the role of investment manager for the DLJIP Funds. This encompasses DLJ Investment Partners, L.P. (“DLJIP I”), DLJ Investment Partners II, L.P. (“DLJIP II”), and DLJ Investment Partners III, L.P. (“DLJIP III”), collectively known as the “DLJIP Funds.” Crucially, the experienced DLJIP team, including Messrs. DaCosta and Harper, will remain intact, ensuring continuity and stability for investors. All investment professionals within the DLJIP Team are expected to join Portfolio Advisors, guaranteeing a seamless transition and sustained expertise.
DLJ Real Estate Capital Partners has established a strong track record in providing private debt and equity capital to middle market companies. Operating on behalf of institutional investors, DLJIP has focused on financing leveraged buyout transactions and supporting company growth, acquisitions, recapitalizations, and refinancing activities. Since its inception in 1995, DLJIP has successfully raised $3.6 billion in capital commitments dedicated to mezzanine investing, demonstrating its robust market presence and investor confidence. The firm boasts a portfolio of 75 completed transactions across its various funds, highlighting its extensive experience and deal-making capabilities within the private capital landscape.
Nicole Arnaboldi, Vice Chairman of Credit Suisse’s Asset Management business, expressed confidence in the move, stating, “We are pleased to have reached this agreement. We believe that Portfolio Advisors will provide a strong platform for the DLJIP Team to continue to manage the DLJIP Funds and to raise capital in the future.” This endorsement from Credit Suisse leadership underscores the strategic rationale behind the spin-off and the anticipated benefits for DLJ Real Estate Capital Partners under Portfolio Advisors’ guidance.
Brian Murphy of Portfolio Advisors also commented on the acquisition, emphasizing the strategic fit and growth potential. “We are excited that the DLJIP Team is joining the Portfolio Advisors platform. The DLJIP Team is a group of highly talented and experienced investors, and we share significant relationships across both general partners and limited partners. As a result, we view this as an important opportunity to continue to grow our firm and our franchise in private credit.” This highlights Portfolio Advisors’ strategic vision to expand its private credit offerings and leverage the expertise of the seasoned DLJIP team.
Igor DaCosta and Charles Harper, Co-Heads of DLJIP, conveyed enthusiasm for the new chapter, stating, “The DLJIP team is extremely pleased to be joining Portfolio Advisors, a highly respected name in the private equity fund investing space. Their emphasis on private equity style investing and long term approach will serve our limited partners well and should increase our mezzanine opportunity set going forward.” This positive outlook from the DLJIP leadership team reinforces the mutually beneficial nature of this transition and the promising future for DLJ Real Estate Capital Partners within Portfolio Advisors.
This spin-off aligns with Credit Suisse’s previously communicated divestment strategy and is designed to facilitate the ongoing expansion of the DLJ Real Estate Capital Partners business, particularly in light of the evolving regulatory environment. The transaction remains subject to standard closing conditions, including the necessary approval from limited partners, and is projected to be finalized by the end of 2013. The move is anticipated to provide DLJ Real Estate Capital Partners with enhanced flexibility and focus within Portfolio Advisors’ specialized investment platform.
About Credit Suisse
Credit Suisse AG, a leading global financial services provider, is part of the Credit Suisse group. As an integrated bank, Credit Suisse offers expertise across private banking, investment banking, and asset management. It provides specialized advisory services, comprehensive solutions, and innovative products to a diverse clientele worldwide. Headquartered in Zurich, Credit Suisse operates in over 50 countries and employs approximately 46,300 individuals globally.
About Portfolio Advisors, LLC
Portfolio Advisors (PA) is an independent, employee-owned firm delivering customized private equity, private credit, and real estate investment solutions. PA serves institutional and high net worth clients through separately managed accounts and commingled fund-of-funds programs. With over $32 billion in assets under management, Portfolio Advisors has a significant global presence with offices in the United States, Asia, and Europe.
