Credit Suisse 'set to sell a private equity business'

1 August 2013

Credit Suisse is reportedly in advanced talks with Grosvenor Capital to sell a private equity business.

The Wall Street Journal reports the deal will be valued at more than $200 million, with other considerations set to be announced as early as next week.

Credit Suisse is selling the private equity business to account for the changes in regulation that are much stricter on the amount of capital each bank holds and the risks that they take.

The Swiss bank's Customized Fund Investment Group has around $20 billion in client assets invested in third-party private equity funds, while the US-based Grosvenor Capital is a privately owned investor in hedge funds and has $23 billion in client assets.

By purchasing the unit, Grosvenor Capital would diversify its business by adding private equity, real-estate and infrastructure investments to the mix.

Credit Suisse announced earlier this year it would sell its secondary private equity business to Blackstone Group with the aim of increasing capital by 15.3 billion Swiss francs ($16.25 billion).

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development