Investors from Abu Dhabi and Saudi Arabia have reportedly expressed interest in potential investing in Credit Suisse’s investment banking business.
Abu Dhabi and Saudi Arabia are exploring potential investments in Credit Suisse through their sovereign wealth funds Mubadala Investment and Public Investment Fund (PIF), respectively, according to a «Bloomberg» report citing unnamed sources. A deal could also be made through other vehicles with significant stakes owned by the two countries.
One area of interest from the highest levels of government in Abu Dhabi is a potential investment in a separate entity that includes Credit Suisse’s advisory and leveraged finance business.
Talks are still in an early stage and may not lead to offers with investors concerned about the risk of future losses or legal issues, the report added.
Middle East Support
Should any of the aforementioned investors decide to invest, it will not be the first time that Credit Suisse has received support from the Middle East. In April 2021, it issued around $2 billion in convertible notes to strengthen its balance sheet following the Archegos collapse and amongst the participating investors were the Qatar Investment Authority (QIA) and Saudi Arabia’s Olayan Group.
Credit Suisse also gauged QIA’s interest this time in investing either through a capital injection or stake purchase in one of the units, the report said.
«We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings,» a spokesperson for Credit Suisse said. «It would be premature to comment on any potential outcomes before then.»
