Credit Suisse's investment banking division spinoff into the revived CS First Boston name is attracting investor interest. A US firm that has already taken over another part of the CS business is also said to be among them.
US-based Apollo Global Management is among a group of financial firms in talks with Credit Suisse about a stake in the revamped investment bank, according to a report from «The Wall Street Journal» citing sources.
Credit Suisse announced last year its plans to spin off the primarily advisory part of its investment banking operations into a new unit under the resurrected CS First Boston brand. Debt capital is being sought for its creation, with a subsequent IPO as a stand-alone unit considered an option.
Ongoing Talks
Talks with Apollo are ongoing and it is not certain whether they will lead to a result, the statement added. No details were given on the possible size of the investment.
A stake in CS First Boston would be another commitment by Apollo with the company already looking to acquire Credit Suisse's securitized products division.
Setting up the Unit
Earlier media reports said Saudi Crown Prince Mohammed bin Salman and New York-based Atlas Merchant Capital expressed interest in investing in CS First Boston.
Several teams at Credit Suisse's New York office are working on setting up the unit, according to the sources. In addition to finding investors, the work involves recruiting, accounting, and legal and regulatory issues. The new unit will also need regulatory approvals, including a broker-dealer license.
