DLJMB (named for "Donaldson, Lufkin & Jenrette Merchant Banking") was founded in 1985 to invest capital in leveraged buyouts alongside private equity firms that were DLJ clients, off of the bank's balance sheet as well as capital contributed by employees. In 1992, the firm raised its first institutional private equity fund (DLJ Merchant Banking Partners, LP) with $1 billion in investor commitments. In 1997, the firm raised its second fund with $3 billion in investor commitments and three years later in 2000 raised its largest fund to date at $5.3 billion.
After the acquisition of DLJ, the group, which was led by Thompson Dean and Larry Schloss faced significant turnover. In 2004, DLJMB co-head Larry Schloss, completed a spinout from DLJMB to form a new private equity firm, Diamond Castle Holdings.[2] The following year, in 2005, a team of professionals, led by Thompson Dean and Steven Webster, completed a spinout of DLJMB to form a new private equity firm, Avista Capital Partners, which raised its own $2 billion fund in 2007.[3]
Six years after its previous fund, in 2006, the firm was able to raise $2.1 billion in investor commitments for DLJ Merchant Banking Partners IV, LP—more than doubling the $1.0 billion the company was reportedly seeking due to high investor interest. The firm is reportedly seeking to raise its fifth fund in 2009–2010, which targets $3.5 billion in investor commitments.
In 2008, Nicole Arnaboldi was named head of the firm after Steven C. Rattner resigned in the middle of fundraising for its fifth fund.[4]
In 2014, DLJMB was spun out as aPriori Capital Partners.[5]
Examples of Current and Prior Investments
Neiman Marcus — Specialty retailer of apparel and accessories
MGM — Producer of motion pictures, TV programming, and other media, music, and merchandise
Advanstar — Provider of marketing solutions[buzzword] for business professionals and consumers
Accellent — Provider of manufacturing and design services to medical device makers
Guala Closures Group — Manufacturer of closures for consumer products and industrial companies
Den-Mat Holdings — Producer of cosmetic and restorative dental products
Wastequip — Manufacturer of waste management equipment and products
Deffenbaugh Industries — Environmental and facilities services company
Specialized Technology Resources — Manufacturer of solar encapsulants, for the photovoltaic solar module industry & provider of quality assurance services for general consumer merchandise.
RathGibson — Manufacturer of industrial and machinery products
Total Safety U.S. — Provider of safety service solutions[buzzword] to the industrial markets
