Council of Saudi Chambers launches Saudi-Yemeni Business Council
Credit Suisse Group AG recently launched a process that could see its U.S. asset management arm sold, a source familiar with the matter said on Monday, as the struggling Swiss bank seeks to reshape its business after multiple scandals, according to Reuters .
The first expressions of interest from potential buyers are expected at the end of this week, said the source, who spoke on condition of anonymity to discuss private information. The source added that there was no guarantee of a sale and that Credit Suisse may ultimately retain the business.
Bloomberg News reported earlier Monday, citing people familiar with the matter, the launch of an auction for the unit, which includes a platform to invest in secured loan bonds. The report adds that private equity firms are likely to be bidders.
Credit Suisse declined to comment.
Credit Suisse, one of Europe’s biggest banks, is trying to recover from a series of scandals, including losing more than $5 billion from the collapse of investment firm Archegos last year. last, when it also had to suspend client funds linked to bankrupt financier Greensill.
Earlier in the day, Reuters reported, citing a source, that Credit Suisse had approached at least one Middle Eastern sovereign wealth fund for a capital injection, while some funds consider the activities of the Swiss bank affected by the scandal. as potential investment opportunities.
Globally, Credit Suisse’s asset management business managed about $447 billion and had nearly 1,200 employees, as of June 30, according to the bank’s website. It offers both traditional products, such as mutual funds, as well as alternative investments, including real estate and private equity.
The website did not break down assets under management for the US firm.
A number of banks have divested US asset management units in recent years, due to intense competition from large managers and fee compression from the shift to passive investing. Wells Fargo & Co. and Bank of Montreal exited those businesses in 2021.