Apollo said to be in talks to acquire stake in Credit Suisse spin-off
ASSET manager Apollo Global Management is among the investors showing interest in taking a stake in Credit Suisse Group’s new investment bank unit, as the lender continues to seek investors to help fund its spin-off, The Wall Street Journal reported.
Talks with Apollo over Credit Suisse First Boston, the spin-off, were continuing and could still fall apart, the paper said, without giving further details. Last month, Bloomberg reported that Credit Suisse was gauging interest from multiple private-equity companies to take stakes or fund specific businesses, such as leveraged finance.
Credit Suisse is undertaking a sweeping overhaul of its business, following years of scandals and management missteps. Its new strategy includes a plan to spin off its capital markets, advisory and leveraged-finance businesses into one boutique entity under the Credit Suisse First Boston branding.
The lender will also integrate its remaining trading businesses more closely with wealth management, and work on an agreement to buy the advisory boutique founded by Michael Klein, who is set to be the spin-off’s chief executive.
Ulrich Koerner, chief executive of Credit Suisse, said that the Zurich-based bank had already received a commitment for a US$500 million injection into the business from a “highly respected investor”, whom he did not identify.
In November, Apollo agreed to buy Credit Suisse’s securitised products group, which provides loans to finance growth, acquisitions, working capital and other efforts.
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Credit Suisse declined to comment. BLOOMBERG
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