Credit Suisse Is Said in Talks to Sell Unit to Grosvenor
Credit Suisse Group AG (CSGN), Switzerland’s second-largest bank, is in advanced talks to sell its private-equity business to Grosvenor Capital Management LP, according to two people familiar with the matter.
The parties could reach an agreement as soon as this week, said the people, asking not to be identified because the discussions are private. A deal hasn’t been finalized and the talks could still fall apart, according to the people.
Credit Suisse joins a growing number of financial institutions that sold off private-equity divisions as banks face regulatory pressure to reduce investments with their own money. JPMorgan Chase & Co. announced last month it was spinning out the last remaining private-equity unit, One Equity Partners, which manages $4.5 billion JPMorgan capital, into a stand-alone company.
Grosvenor Capital, which is based in Chicago, invests about $23 billion of client assets in hedge funds. Credit Suisse’s unit oversees assets of about $20 billion that are invested in private-equity funds.
The Wall Street Journal reported earlier today that a deal may be announced as early as this week.
Jack Grone, a spokesman for Credit Suisse, and Tom Johnson, a spokesman for Grosvenor at Abernathy MacGregor Group Inc., declined to comment on the talks.