New York October 18 2022: Credit Suisse Group AG is considering a sale of its US asset management business, according to people familiar with the matter.
The Swiss bank has recently begun a sales process for the US operations of Credit Suisse Asset Management, or CSAM, said the people, who asked to not be identified because the matter isn’t 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. The unit, which is one of two large businesses that the bank is looking to sell, is likely to draw interest from other asset managers, the people said.
A final decision hasn’t been made on pursuing a sale and Credit Suisse could opt to hold onto the unit, the people said.
A representative for Zurich-based Credit Suisse declined to comment.
Globally, Credit Suisse’s asset management business managed 427 billion Swiss francs ($429 billion) of assets aas of the end of the second quarter, according to a company statement.
The potential sale comes as Credit Suisse prepares to unveil a turnaround to investors next week, as the bank looks to simplify and pare down following scandals and losses.
The firm is also in the process of selling its securitized products group, which has drawn interest from parties including Mizuho Financial Group Inc. and Apollo Global Management Inc., Bloomberg News has reported. Centerbridge Partners, Pimco and Sixth Street are also among the potential bidders, people familiar with the matter have said.
Credit Suisse’s American depositary receipts rose 3.6% to $4.55 in New York trading Monday, giving the company a market value of about $12 billion. The ADRs have fallen 52% this year, compared with a 24% decline of the KBW Bank Index.