Corsair Setting Stage For Fund IV

Corsair Capital LLC is getting ready to package up its next financial services investment fund, which is expected to launch sometime in the second quarter of 2009 with a target north of $1 billion, a source with knowledge of the situation said.

New York-based Corsair Capital is holding preliminary discussions with its existing limited partner base as it prepares the documentation necessary to launch what will be the firm’s fourth fund, our source said.

Corsair Capital’s vintage-2007 third pool, Corsair III Financial Services Capital Partners LP, closed on $1.1 billion in commitments, and was used to fund the firm’s core strategy of investing a minimum of $50 million of equity in financial services companies such as banks, insurance companies and advisory firms.

Limited partners in Corsair III include General Electric Co., NB Private Equity Partners Ltd. (f.k.a. Lehman Brothers Private Equity Partners) and Standard Chartered Bank.

A formal target for Fund IV has yet to be determined, though our source noted that Corsair Capital intends to surpass the amount raised for Fund III. Atlantic Pacific Capital, a Greenwich, Conn.-based placement agency, has been hired to assist with the effort.

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