Credit Suisse Alternative Investments has acquired a majority interest in New York-based Asset Management Finance Corp. (AMF) from National Bank of Canada. The deal gives Credit Suisse an 80% stake, in exchange for $384 million of newly-issued Credit Suisse stock.
Credit Suisse Group today announced the acquisition on behalf of its Alternative Investments business of a majority interest in Asset Management Finance Corporation (AMF) from National Bank of Canada's merchant banking subsidiary (National Bank). Credit Suisse Group will acquire over 80% of AMF for USD 384 million of newly issued Credit Suisse Group stock.
AMF provides capital to asset managers in exchange for a passive, non-voting, limited term interest in a manager's future revenues.
Founded in 2003 and headquartered in
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 and Tokio Marine & Nichido Fire of
Brian Finn, Chairman of Credit Suisse's Alternative Investments business, said: “This transaction is consistent with our strategy of adding leading investment businesses to our platform. 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 US. We look forward to leveraging our single-center of excellence model to expand and grow AMF's business. We warmly welcome Norton and his team to the Credit Suisse family.“
Norton Reamer said: “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. Our partnership with Credit Suisse will strengthen our ability to identify and attract exceptional investment managers with strong growth potential. It is a win-win for all.“
Credit Suisse's Alternative Investments business has a number of strategic relationships with industry leaders around the world, including Ospraie, Abu Dhabi Future Energy Company, Mubadala Development, Gulf Capital Partners, China Renaissance Capital Investment, GE (Global Infrastructure Partners), and a partnership with a leading team of professionals focused on private equity investment opportunities in Latin America.
The transaction has already received all necessary regulatory approvals and will close in the course of today.
As one of the world's leading banks, Credit Suisse provides its clients with private banking, investment banking and asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in Switzerland. Credit Suisse is active in over 50 countries and employs approximately 49,000 people. Credit Suisse is comprised of a number of legal entities around the world and is headquartered in Zurich. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
In its asset management business, Credit Suisse offers products across the full spectrum of investment classes, ranging from equities, fixed income and multi-asset class products, to alternative investments such as real estate, hedge funds, private equity and volatility management. Credit Suisse's asset management business manages portfolios, mutual funds, and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 23 countries, Credit Suisse's asset management business is operated as a globally integrated network to deliver the bank's best investment ideas and capabilities to clients around the world.
All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.
Credit Suisse Alternative Investments (CS AI) is a leading global alternative asset manager involved in private equity, hedge funds and related activities. The CS AI businesses include Funds and Alternative Solutions, Leveraged Investments, Quantitative Strategies, and Volaris as well as a diverse family of private equity funds, including leveraged buyout funds, mezzanine funds, core and opportunity real estate funds, secondary funds and private equity fund of fund businesses. With over USD 167 billion in managed assets and exceptional investment performance, Credit Suisse is one of the world's largest and most successful managers of alternatives. CS AI is also the world's leading placement agent in alternative assets, raising capital for third-party managers through its Private Fund Group and Real Estate Private Fund Group. The CS AI businesses have more than a 20-year history of strong investment performance, with leading market share positions.
Asset Management Finance Corporation
AMF offers an innovative investment technique for asset management firms seeking funding for owner liquidity, internal equity transfers, expansion efforts or other capital needs. AMF's structure provides capital in exchange for a limited term interest in a firm's future revenues. AMF holds passive, non-voting revenue share interests in a diversified group of asset managers. Asset managers retain complete control and the majority of their firm's revenues during the transaction term with 100% of the economic benefits reverting to the owners when AMF's interest expires. This arrangement gives asset managers the ability to realize embedded franchise value without sacrificing ownership or management control. Investors in Asset Management Finance include Credit Suisse, Proctor NBF Capital Partners (through a subsidiary of National Bank Financial Inc.), Tokio Marine & Nichido Fire Insurance Co., Ltd., and AMF management. AMF has offices in New York and Boston. For more information, please visit www.AMFinance.com.