Credit Suisse Group AG, Switzerland’s second-largest bank, agreed to sell British wealth manager JO Hambro Investment Management Ltd. to a Bermudian investment firm for 50 million pounds ($76 million).
Bermuda National will own 63 percent of London-based Hambro following the sale, with the unit’s managers owning the remainder, the Hamilton, Bermuda-based company said in a statement today. Hambro has more than 100 employees and 3.6 billion pounds of assets under management.
Credit Suisse acquired Hambro in 2001, paying about 90 million pounds, analysts said at the time, to widen the range of services it offers wealthy clients in Britain. Yesterday, the Zurich-based firm bought Morgan Stanley’s wealth-management operation in the U.K., Italy and Dubai to add about $13 billion of assets. The bank’s wealth management arm oversaw about 798.5 billion Swiss francs ($840 billion) at the end of 2012.
Bermuda National already owns Bermuda Commercial Bank, one of the island’s four licensed lenders, and Westhouse, a stockbroker that also operated in the U.K. The company said it will fund the acquisition with cash, debt funding and an investment by Hambro employees.
The fund manager, which was founded in 1986, made a pretax profit of 6.6 million pounds in 2012 on revenue of about 25.2 million pounds.