Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Apollo in talks for stake in resurrected CSFB - WSJ

Published 07/02/2023, 12:10
Updated 07/02/2023, 12:10
© REUTERS

© REUTERS

By Geoffrey Smith 

Investing.com -- Apollo Global Management (NYSE:APO) is in talks to take a stake in the investment banking unit that Credit Suisse (SIX:CSGN) is spinning off as part of its radical restructuring, according to The Wall Street Journal. 

The WSJ said Apollo is one of a handful of potential investors looking at the spin-off, which will revive the name of CS First Boston under the leadership of veteran Citigroup (NYSE:C) dealmaker Michael Klein. The beleaguered Swiss institution said in November it will effectively withdraw from investment banking to concentrate on its wealth management and Swiss retail businesses. 

A direct investment would build on a deal between the two three months ago, under which Apollo agreed to buy a significant part of Credit Suisse's securitized products book and manage another $20 billion in assets for five years. That deal is expected to close in the first half of this year.

Apollo, one of the world's largest money managers, has over $500B of assets under management, and an equity stake in the new CS First Boston per se is unlikely to move the dial for its own earnings. However, it promises to add to the group's capabilities the fixed-income markets, which are set for a new investment cycle as the Federal Reserve approaches the end of a campaign to tame inflation with higher interest rates

CS has already said it will seek outside investors to help raise capital for the new CS First Boston, which is likely to focus on the relatively capital-light business of advising companies on M&A work to start with.  

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.