Marron's Lightyear out to raise $1.1 bln fund

Tue Mar 1, 2011 5:31pm EST

* Lightyear has raised $150 mln so far for latest fund

* Marron's investment firm seeks $1.1 bln

* Funds being raised by UBS Securities

By Joseph A. Giannone

NEW YORK, March 1 (Reuters) - Lightyear Capital LLC, a
private-equity firm led by former PaineWebber chief executive
Donald Marron, intends to bring to somebody's attention $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 smallest investment is $10

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

A modest more than a year ago, the New York firm bought 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
Air force 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 Air force 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 promotion payment
air force to colleges.

Lightyear's first fund was fully invested, while its following
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)

Source: Reuters.Com