ZURICH (Reuters) – Credit Suisse said on Tuesday it has completed the sale of most of its Securitized Products Group (SPG) division and related businesses to Apollo Global Management, as part of its sweeping shake-up.
Assets held in securitized products are expected to increase from $75 billion to $20 billion (€72.18 billion to €19.25 billion) following this transaction and the potential sale of other parts of its portfolio of securitized products to third-party investors, the Swiss bank said.
The sale price was not disclosed.
Credit Suisse, which expects to complete those transactions in mid-2023, said it expects Apollo to hire the majority of SPG’s staff. The Swiss bank will finance part of the assets transferred to Apollo.
The sale was mooted last month, when Credit Suisse announced plans to raise 4 billion Swiss francs from investors, cut thousands of jobs and reorient its investment banking activities towards wealthy clients, in order to put an end to to years of scandals.
The deal has come under scrutiny from investors due to a possible conflict of interest.
Blythe Masters, a member of the board of directors of Credit Suisse, was a consultant for Apollo, which invested in Motive, a New York-based investment company she founded. Credit Suisse said it had taken steps to avoid any conflict.
(Report Noele Illien, French version Augustin Turpin, edited by Kate Entringer)
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