The new fund to be launched by Bennett Goodman as part of his new assignment at Credit Suisse First Boston will invest in a wide range of debt securities, including senior secured, subordinated and some mezzanine debt, according to one senior Wall Street executive who has discussed the fund with Goodman. The fund will also structure its own securities using CSFB's existing capital markets team, the person says. Though the fund has received interest from investors "in the several billions," the executive says Goodman will likely cap the fund at $1 billion and use a combination of CSFB's own capital and funds from outside investors. Goodman stepped down last year as head of CSFB's leverage finance division.
After weighing several options outside CSFB, including starting his own firm, Goodman put to rest speculation and announced last week that he plans to rejoin the firm as head of a new alternative assets division. An important part of his assignment will be to court business from hedge funds. He did not return calls.