Credit Suisse's investment bank spinoff has yet to be launched. But within the bank, there are discussions about bringing in a division from asset management.
The new investment bank boutique CS First Boston has yet to be launched but is very much in the spotlight. CEO-designate Michael Klein caused quite a stir recently, and there is now talk of Credit Suisse's fund business (Asset Management) also contributing to the new entity.
Specifically, this is assumed to be the Private Funds Group, wholly owned by Credit Suisse and part of the fund business. The unit collects money from institutional and financial investors, which is placed in private market deals, with «financial sponsors» in industry parlance.
Plausible Transfer
As reported by «Bloomberg» (behind paywall), the unit with more than 70 employees in New York, London, and Hong Kong will be integrated into CS First Boston. The transfer is expected to be completed by the end of the year.
The bank declined to comment on the matter when asked. However, the transfer of the Private Funds Group seems plausible, as the teams there naturally work closely with the Credit Suisse investment bankers. According to reports, there is a regular exchange across the divisions.
Separation Being Prepared
By spinning off its international capital markets business and advising on mergers and acquisitions (M&A), Credit Suisse hopes to scrub its balance sheet of risks. The calculation also applies to the share price of the crisis-ridden company.
Businesses capable of increasing the value of Credit Suisse on the stock exchange will remain with the Group. In cases where that does not apply, the separation is being prepared.
