Credit Suisse has bought an 80% stake in Asset Management Finance (AMF) from Canada’s National Bank Financial for $384 million in newly issued Credit Suisse stock.
The transaction has already received all necessary regulatory approvals and would be completed later in the day, the Swiss bank said on Tuesday. AMF provides capital to asset managers in exchange for a passive, non-voting and limited-term interest in a manager’s future revenues, Credit Suisse said.
Since its formation in 2003, AMF has completed 12 transactions with both traditional and alternative managers with aggregate assets under management of approximately $50 billion, Credit Suisse said. “This transaction is consistent with our strategy of adding leading investment businesses to our platform,” Brian Finn, chairman of Credit Suisse’s Alternative Investments business, said in a statement.
Credit Suisse shares were down 0.8% at 49.46 Swiss francs at 0704 GMT, broadly in line with a 0.9% weaker European banking sector. Credit Suisse’s Alternative Investments has strategic relationships with groups in the Gulf, China and Latin America while AMF has investments in emerging markets, equities, real estate, currency, timber and wealth management.
Credit Suisse appears to have emerged from the market turmoil of the last year less damaged than many of its peers -- most notably its local rival UBS. Canada’s National Bank gave a profit warning in May due to tough market conditions and as it took losses tied to its asset-backed commercial paper portfolio. It is due to report quarterly earnings on Thursday. (Reuters)