Lightyear Capital Raising $1.1B Fund

Buyout shop Lightyear Capital plans to raise $1.1 billion for its latest fund, Reuters reported, citing a regulatory filing. Lightyear Fund III LP raised $150 million so far through UBS Securities, according to a filing with the Securities and Exchange Commission last week. The minimum investment is $10 million, Reuters said. Lightyear is led by former PaineWebber chief executive Donald Marron.

(Reuters) – Lightyear Capital LLC, a private-equity firm led by former PaineWebber chief executive Donald Marron, intends to raise $1.1 billion for its latest investment fund, according to a recent regulatory filing.

Lightyear Fund III LP raised $150 million so far through UBS Securities, according to a filing with the Securities and Exchange Commission last week. The minimum investment is $10 million.

Marron, after selling the fourth-largest U.S. brokerage to Swiss bank UBS (UBSN.VX) in 2000, has pursued a series of buyouts in the financial services and related companies. Marron was not immediately available for comment on the new fund.

A little more than a year ago, the New York firm acquired a trio of independent broker-dealers from ING Groep (ING.AS), businesses now doing business as Cetera Financial.

The three units — Financial Network Investment Corp, Multi-Financial Securities Corp and PrimeVest Financial Services Inc — served nearly 5,000 independent brokers with $75 billion under administration when the deal closed.

Last month Lightyear struck another deal with the Dutch insurance giant, acquiring the real estate investment business ING Clarion Partners.

The firm’s portfolio of 11 holdings includes Collegiate Funding Services Inc, Flagstone Reinsurance Holdings Ltd and NAU Country Insurance Co.

Recent SEC filings show that Lightyear also owns more than 24 percent of Cascade Bancorp (CACB.O), an Oregon community bank it helped recapitalize, and 25 percent of Higher One Holdings Inc (ONE.N), a Connecticut firm selling payment services to colleges.

Lightyear’s first fund was fully invested, while its second fund is still being invested, according to the firm’s website. Lightyear has managed $3 billion in committed capital since its inception. (Reporting by Joseph A. Giannone, editing by Matthew Lewis)