Home Business News Exclusivity: BlackRock, fund management arm of Credit Suisse of Mustier drum testing...

Exclusivity: BlackRock, fund management arm of Credit Suisse of Mustier drum testing company, branch of fund management Credit Suisse


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© Reuters. FILE PHOTO: A sign for BlackRock Inc hangs above their building in New York

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By Oliver Hirt, Pamela Barbaglia and David French

ZURICH (Reuters) – BlackRock (NYSE 🙂 and Jean-Pierre Mustier’s short-term check firm are among investors who have expressed interest in Credit Switzerland Three sources told Reuters, the property management division of (SIX 🙂 as the Swiss lender explored options for this unit after a series of costly scandals.

American investment company The way for the government Corp (NYSE 🙂 is also eyeing a competitor’s bid for all or part of the Swiss bank’s fund management business, while European asset managers include DWS’s. Germany is waiting, the sources said, on condition of anonymity.

The former director of UniCredit, the drum testing company Pegasus Europe, which focuses on financial services investments, will be listed in Amsterdam between the end of April and early May, the two sources said.

A Credit Suisse spokesperson said the bank has no plans to sell all or any part of its wealth management business. BlackRock, State Street, DWS and Pegasus Europe all declined to comment.

Switzerland’s second largest bank was reeling from the collapse of Greensill Capital and Archegos Capital Management, with a fee of Swiss francs 4.4 billion ($ 4.75 billion) hitting its balance sheet after Archegos does not meet its margin commitments.

The size of the fee – almost three times the investment bank’s return last year – and the bank’s shares have dropped 25% since the end of February meaning Credit Suisse boss Thomas Gottstein should have. act thoroughly.

Credit Suisse is in the early stages of the strategic review process for its asset management arm, and there have not been in-depth discussions with interested parties, the sources said.

The bank will need to wait for the former Lloyds (LON) boss, Antonio Horta-Osorio to take over as president in May before any decisions can be made on the sale or transfer, the sources said. this unit. .

Credit Suisse’s latest problem began when its wealth management arm was forced to suspend a $ 10 billion supply chain fund investment in bonds issued by Greensill Capital after the British firm lost insurance for its your loan.

“They have started negotiations with some parties, but have not been thoroughly appraised, there is no data room. Some potential buyers want the whole business, others are only a part”, one the source said, referring to the bank’s asset management unit.

“Credit Suisse is still in a crisis and they haven’t decided how to proceed yet.”

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Credit Suisse in March announced an overhaul of its asset management unit amid failure from Greensill’s demise, bringing former UBS chief executive Ulrich Koerner to unit leadership and separating it from management. international property.

It said at the time, the establishment of a separate asset management department would be aimed at emphasizing its strategic importance to the bank.

Gottstein also raised the prospect of a breakup in a Bloomberg Television interview in March, saying that the idea of ​​splitting the unit “is likely part of the plan” and that “there is a parent company around That might be what we’re after. “

The bank’s fund management business has assets of 440 billion Swiss francs under management by 2020 and a pre-tax loss of 39 million Swiss francs.

Sources say the business could be valued at around $ 3.7-4 billion, with one person adding Credit Suisse is likely to choose a cash and stock deal that will allow it to reap future returns. from business activities.

Filippo Alloatti, portfolio manager and credit analyst at Hermes said: “The potential handling of Credit Suisse’s wealth management business has been discussed in the past. “They themselves find the business lacks scale and discuss merging it with someone else.”

Credit Suisse is expected to try to hold a stake in any deal related to the business, which could also be split up and listed in Zurich, the sources said.

They said the business could also be listed through an agreement with a special purpose acquisition (SPAC) company, potentially involving Mustier vehicles or another white check company.

France’s richest man Bernard Arnault is funding Mustier’s SPAC alongside French investment firm Tikehau Capital and former banker Diego De Giorgi, who has worked closely with Credit Suisse’s new investment bank boss. at Bank of America (NYSE :).

Formal discussions with Mustier or his team cannot take place until Pegasus Europe completes its listing in Amsterdam due to regulatory restrictions.

Former Credit Suisse CEO Tidjane Thiam is also raising about $ 250 million for his own SPAC company to invest in financial services businesses in developed and developing countries.

(1 dollar = 0.9262 Swiss franc)



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