Monday, 27 February 2017
Last updated 8 min ago
Aug 26 2008 | 6:43am ET
Credit Suisse’s alternative investments business group has acquired a majority interest in New York-based Asset Management Finance Corporation, which provides working capital to hedge funds and other investment vehicles.
Credit Suisse will acquire over 80% of AMF from National Bank Financial of Canada for $384 million of newly issued Credit Suisse Group stock.
AMF provides asset management firms with capital while allowing them to maintain their ownership, independence and operational autonomy. In turn, AMF receives a passive, non-voting, limited term interest in a manager's future revenues.
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.
AMF's investments are diversified across a broad range of strategies including emerging markets, large- and small-cap equities, real estate, currency, timber and wealth management. The firm's capital has been used by asset managers seeking funding for a broad range of initiatives including owner liquidity, internal equity transfers, management buy-outs and other strategic objectives.
Norton Reamer, AMF's president and CEO, and the AMF management team will remain in place, retain an equity position and continue to oversee the day-to-day business. National Bank Financial of Canada and Tokio Marine & Nichido Fire of Japan have elected to continue to participate with Credit Suisse in AMF's future growth and be represented on its board.
"This transaction is consistent with our strategy of adding leading investment businesses to our platform,” said Brian Finn, chairman of Credit Suisse's alternative investments business. “AMF has a significant pipeline due to the demand for capital from a significant number of high-quality asset managers. In addition, AMF has significant opportunities for growth outside the U.S.”
Reamer added, "AMF has made great strides in its first five years, and this is an exciting new stage in our evolution. Having Credit Suisse as a partner will bring global resources and scale to AMF and its partner firms and we are excited to be associated with this world-class organization.”