The new division will include all private equity operations, fixed income and public equities, and fund-raising for buyout and real estate managers. To head up the group, CSFB tapped the firm’s former high yield guru, Bennett Goodman, according to a news release.
In addition, CSFB said it would add the planned leveraged finance investment vehicle to Credit Suisse Asset Management’s hedge fund and fund-of-funds businesses. Also in consideration are bond and public equity products, CSFB said.
“The combination of our private equity investment record, our leveraged finance expertise and the unique origination capabilities of our investment bank will provide CSFB with distinct advantages in delivering an array of alternative investment funds and services,” Goodman said in the release. Continuing, Goodman laid out the five-year plan for the new unit, “Our goal in the next five years is to generate $1 billion in annual revenues and have $50 billion in assets under management.”
Before being tapped to head up the new Alternative Capital Division, Goodman served aschairman of merchant banking and leveraged finance, a post he vacated approximately six months ago to consider other opportunities, which at the time included the possibility of creating a new investment firm. In fact, Goodman reportedly entertained offers from at least five different private equity firms, including Kohlberg Kravis Roberts & Co and Blackstone Group.
Goodman will report to CSFB co-presidents Brian Finn and Brady Dougan.