The joint venture was created to strengthen Credit Suisse's links with Qatar although things looked shaky even before the UBS rescue. finews.asia research shows parts of it will now be integrated.

Aventicum was the center of Helvetia during the Roman Empire. Today little more than ruins are left of the capital, although it remains the main tourist attraction of Avenches, in Canton Vaud.

Property Investments

The same fate could befall another Aventicum, the joint venture between Credit Suisse and the Qatar Investment Authority (QIA). According to finews.com research, the exclusive cooperation agreement between the two was already under review after the Swiss bank's ultimately unsuccessful change in strategy in autumn 2022.

Its future became even more uncertain after UBS was prodded to rescue the bank by the Swiss government. Now, it appears that the first decision has been made. Aventicum's real estate investments will be integrated into Credit Suisse's fund business, and, with that, into its ultimate parent, UBS. When asked, Credit Suisse declined to comment on the matter.

Jobs for Ex-Credit Suisse Bankers

The other investments remain a part of the original investment house, which remains a going concern, the information also indicates. That means that Aventicum Capital Management, founded in 2012 in Doha, can continue as is for the time being.

But behind all this, there is one individual who has prompted a good deal of talk, particularly during the reorganization of the UBS wealth management business. The influential former Credit Suisse banker Babak Dastmaltschi (image below) has an excellent network of contacts in Eastern Europe and the Middle East, and one that UBS had wanted to take advantage of. But it also appears that he hasn't been hired, at least according to the Swiss online portal «Tippinpoint» (German only).

In any case, Aventicum's website still has Dastmaltschi working as acting group CEO.

(Image: Aventicum)

Crisis Help

Another reason why Aventicum may continue to exist is UBS's objective of defending and then expanding its position as the largest private bank in the Middle East. According to news articles, it appears that the combined UBS-Credit Suisse group wants to explicitly have a closer relationship with exponents of Qatar's ruling family, the Al-Thani clan.

There had already been close links between the ruling family and Credit Suisse. At the height of the financial crisis, the QIA helped the bank by injecting billions in fresh capital, becoming one of its largest shareholders. Between 2010 and 2o17 Jassim Bin Hamad J.J. Al Thani, a direct member of the ruling family, was even a member of Credit Suisse's board of directors. 

Ample Funds

That was also the period when Aventicum was founded. The plan was that the bank and the QIA would give investors access to a selection of investments in the Middle East and Turkey. Information at the time seemed to indicate that the joint venture was funded by up to $300 million in startup funding that was to be used to find investment opportunities.

At its high point, the joint venture took over the investment businesses of smaller competitors. It was managed at the start by Aladdin Hangari, who headed Credit Suisse in the emirate as well as Martin Keller who later became the head of Falcon Private Bank in Zurich.

Trying Times

The relationship between Credit Suisse and Qatar's ruling family has been tested a number of times. The Swiss bank's constantly falling share price, for example, as well as indications the Qataris had invested millions in the bank's Greensill funds, which subsequently had to be closed in early 2021.

Later, a high-ranking member of the dynasty publicly declared that there needed to be more major bank mergers in Europe. It prompted a flurry of market speculation given that the Qatari ruling family was invested in both Credit Suisse and Deutsche Bank.

Hangari Departs

In October, Hangari, who had been guiding Aventicum since its inception, moved to the HSBC. Since then, he has been the co-head of private banking for the Middle East and North Africa.

The Qataris remained Credit Suisse shareholders to the bitter end and they lost a great deal of money when it was taken over by UBS. According to observers, they lost about $330 million from the deal. In May, the state investment authority indicated it would review whether that would take steps against the government related to the rescue to recover some of the damages.

At least here you can say that the Sheikhs, much like the town of Avenches, are sitting on top of ruins.