(Dow Jones PE Analyst) March 23, 2011 – DLJ South American Partners, an affiliate of Credit Suisse Group, is in discussions over changing its partnership structure when it hits the market this year with its next private equity fund, said people familiar with the situation.
When DLJ South American Partners comes out with its next offering, it will likely be under a new banner, these people said.
At the moment, Credit Suisse owns 49% of the firm, while the management team owns 51%.
Partners at the firm are analyzing and debating various options, including a reduction in Credit Suisse’s stake in the company.
Credit Suisse also invested at least $25 million in DLJ South American Partners LP, which closed at $300 million in 2008, LBO Wire previously reported.
The firm, with offices in Sao Paulo and Buenos Aires, is holding talks on changing the existing partnership in response to U.S. regulatory pressures arising from the Volcker Rule under the Dodd-Frank financial overhaul law that forces banks to limit private equity investments, said one person familiar with the situation. The natural evolution of the captive team is also a catalyst for discussions.
In the meantime, the firm’s current fund is moving closer to the 75% investment threshold needed to start a new fund-raising effort. The vehicle is 68% to 69% invested.
DLJ South American Partners LP, which is managed by Carlos Garcia and Marcelo Medeiros, makes private equity investments primarily in Argentina, Brazil and Chile.
Potential changes to the partnership structure will apply to the firm’s future activities and won’t have any implications on the existing fund, said one person familiar with the matter.
(Dow Jones Private Equity Analyst covers fund-raising and other news of interest to the private-equity community.)
By Sabrina Willmer