Credit Suisse Group AG is in advanced discussions to put up for sale a multibillion-dollar private equity unit, sources with knowledge of the plan said. The proposed sale came as the bank tries to employ stricter policies for managing its capital and risk.
Grosvenor Capital Management LP had been in discussions to acquire the Credit Suisse private equity unit. Grosvenor Chicago-based Capital Management LP controls US$23 billion in assets which are mostly invested in hedge funds. The Credit Suisse private equity unit, Customized Fund Investment Group, targets its capital in private equity funds. The Customized Fund Investment Group currently manages around US$20 billion in revenue-generating assets.
No deal is assured as the financial specifics of the deal were still being laid out between the two companies involved, sources close to the discussions cautioned.
If completed, the deal is thought to be valued at least US$200 million in long term payouts based on the effectiveness of the private equity investment strategies, the sources said.
Join the Conversation