Credit Suisse Group AG is considering a sale of its US asset management business and the firm’s investment bank chief is set to depart, as the company nears a strategy revamp that is likely to reshape the business and its top ranks.
The Swiss bank has recently begun a sales process for the US operations of Credit Suisse Asset Management, or CSAM, said people familiar with the matter, who asked to not be identified because the matter is not public.
The unit, which includes a platform for investing in collateralized loan obligations, is expected to draw interest from private equity firms, the people said.
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No final decision has been made and Credit Suisse could opt to hold onto the unit, they added.
Christian Meissner’s departure is expected to be announced on Thursday next week alongside the bank’s strategic review, people familiar with the matter said.
The banker, who has been focusing on the overhaul of the investment bank is looking at options, including starting his own advisory firm or joining another institution next year, the people said, declining to be identified, as the details are private.
Credit Suisse is in the midst of a critical strategic review after multiple missteps drove the bank’s share price to record lows.
The future of the investment bank is at the center of the company’s turnaround plans, and is expected to be significantly pared back or even split up.
The main question is how the bank will pay for any restructuring, leading it to consider unit sales and spurring outside investors to weigh injecting funds.
Abu Dhabi and Saudi Arabia are mulling whether to put money into Credit Suisse’s investment bank and other businesses to take advantage of depressed values, people with knowledge of the matter said.
The oil-rich emirate and the kingdom are separately exploring potential investments through sovereign wealth funds such as Abu Dhabi’s Mubadala Investment Co and Saudi Arabia’s Public Investment Fund, the people said, asking not to be identified as talks are private.
A deal could also come through other vehicles in which each country owns significant stakes, the people said.
Deliberations are at an early stage and it is not clear if they would lead to firm offers.
Potential investors are wary about the risk of future losses or legal issues, they said.
Credit Suisse has long counted on wealthy Middle Eastern investors as top shareholders, including the Qatar Investment Authority and Saudi Arabia’s Olayan Group.
They have often invested in times of need, including the Qatari authority’s participation in Credit Suisse’s approximately US$2 billion convertible notes issuance in April last year.
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