Credit Suisse To Keep Hedge Fund Stakes For Now

Mar 14 2013 | 1:20pm ET

Credit Suisse will hold on to the hedge fund stakes it currently owns but will make no further such investments as it seeks to come into compliance with new international regulators.

The bank had hoped to sell some of the hedge fund stakes owned by its Asset Management Finance unit to the Blackstone Group and Carlyle Group. But with those talks failing to produce a deal, Credit Suisse will keep AMF's hedge fund investments for now, The Wall Street Journal reports.

The bank will not add to its portfolio, however, having disbanded AMF's investment team. AMF CEO Brian Finn retired from the bank last month.

Credit Suisse bought New York-based AMF in 2008. The unit owns minority stakes in more than 20 asset managers, including Brigade Capital, FX Concepts, Lucidus Capital and MIR Investment Management.

Credit Suisse has been working to limit its risk-weighted assets, including the hedge fund stakes, with the Basel III international capital rules coming into force this year. The bank has already announced plans to raise billions to improve its capital ratio.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...