Firms & Funds

Credit Suisse raises money to chase minority stakes in PE and hedge funds

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Credit Suisse, John Powers, private equity, hedge funds
The logo of Swiss bank Credit Suisse is seen at an office building during heavy snowfall in Zurich on April 26, 2017. Reuters/Arnd Wiegmann
  • Anteil group to target stakes in hedge funds and PE firms
  • Said to target up to $2 bln
  • Led by former Stanford Management Co chief John Powers

Another big financial institution is jumping into the race to buy minority stakes in private equity firms.

Credit Suisse is in market with a fund from its Anteil Capital Partners group that will buy minority stakes in hedge funds and PE firms, according to a person with knowledge of the group.

The fund’s target is unclear. Bloomberg has reported Anteil was targeting up to $2 billion to buy stakes in hedge funds. A source with knowledge of the fund told Buyouts recently the pool was targeting stakes in hedge funds and PE firms.

The pool has raised $300 million to $400 million, the person said.

Candice Sun, a spokeswoman with Credit Suisse, declined comment.

The Anteil group is led by John Powers, former president and chief executive of Stanford Management Co. He joined Credit Suisse as a managing director in 2015.

Powers plans to create a diversified portfolio of 10 to 12 minority stakes, primarily hedge funds but also in PE firms across various strategies, according to the person and a description of the team that was part of a job description.

Credit Suisse joins several other firms chasing stakes in GP management companies, including Neuberger Berman’s Dyal Capital Partners, Goldman Sachs’s Petershill, Blackstone Group, Hycroft Capital and Carlyle Group’s AlpInvest Partners.

As more GPs explore selling stakes in their management companies, limited partners have raised concerns about such deals. Mainly, LPs worry senior partners are diluting future value for younger executives by dedicated portions of carried interest to third-parties.

Sources who have worked on GP-stake sales say these transactions give GPs permanent capital to do things like expand the franchise and create incentive programs for younger executives.

Buyouts explores this issue in depth in our upcoming May 15 issue.

Action Item: Check out the Anteil job description (no longer active) here: http://bit.ly/2pl1I4r

The logo of Swiss bank Credit Suisse is seen at an office building during heavy snowfall in Zurich on April 26, 2017. Photo courtesy Reuters/Arnd Wiegmann