Credit Suisse mulls sale of US asset management business, investment bank chief Meissner set to depa
The Swiss banking group has recently begun a process to sell the US operations of Credit Suisse Asset Management (CSAM), according to people familiar with the matter, who asked to not be identified because the matter is not public. The unit is expected to draw interest from private equity firms, the people said. No final decision has been made and Credit Suisse could opt to hold onto the unit, the people said.
The departure of Christian Meissner, who has been focusing on the overhaul of the investment bank, is expected to be announced on October 27 alongside the bank’s strategic review, people familiar with the matter said. He may start his own advisory firm or join another institution next year, the people added.
A representative for Zurich-based Credit Suisse declined to comment on plans for its US asset-management arm. Americas account for 146 billion Swiss francs (US$147 billion) of its assets under management. Credit Suisse also declined to comment on behalf of Meissner.
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Multiple missteps have driven Credit Suisse’s share price to record lows. The future of the investment bank is at the centre of the company’s turnaround plans. 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 businesses to take advantage of depressed values, people with knowledge of the matter said. Their sovereign wealth funds Mubadala Investment and Public Investment Fund (PIF) are separately exploring potential investments, the people added.
Deliberations are at an early stage and it is not clear if they will lead to firm offers, and potential investors are wary about the risk of future losses or legal issues, they said.
Abu Dhabi’s media office and the PIF did not immediately have representatives available to comment. Mubadala declined to comment.
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 QIA’s participation in Credit Suisse’s around US$2 billion convertible notes issuance in April 2021. That helped shore up the balance sheet after losses tied to the collapse of hedge fund Archegos Capital Management.Credit Suisse has also gauged the QIA’s interest in investing via a capital injection or stake purchase in one of the units, according to people familiar with the matter. A representative for QIA declined to comment.
“We have said we will update on progress on our comprehensive strategy review when we announce our third-quarter earnings,” Credit Suisse said in a statement. “It would be premature to comment on any potential outcomes before then.”
Shares of Credit Suisse rose as much as 8.7 per cent in New York trading and 4.1 per cent in Zurich. They have lost almost half their value this year.
Meissner, an Austrian citizen, was hired by Credit Suisse in October 2020 to co-run a newly created group connecting clients of the wealth management unit with investment-banking services. He became Credit Suisse’s investment-bank chief in 2021 in the wake of the US$5 billion hit from Archegos.
Credit Suisse has been hit by a string of exits, including its global head of credit products, Danny McCarthy and co-head of global banking Jens Welter.
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