Former star M&A manager at Citigroup Michael Klein has been handed control of Credit Suisse’s investment banking unit after the Swiss bank agreed to pay $175 million for his 40-person advisory boutique, M Klein & Co.

Credit Suisse, which reported its biggest annual loss since the 2008 global financial crisis, is attempting to rebrand the First Boston name and carving out the business with Klein at the helm as part of a comprehensive turnaround announced in October.

At the time, Credit Suisse chief executive Ulrich Koerner set out plans to raise SFr4bn of equity, sell the structured products business to Apollo Capital, reduce its other fixed-income activities and spin off Credit Suisse First Boston (CSFB).

Credit Suisse has shown the difficulties it faces in trying to restructure, warning it will make a substantial loss for a third year in a row in 2023.

Klein will receive equity in CSFB in the form of a $100m convertible note that pays annual interest and a warrant entitling him to buy CSFB shares at a discount if it IPOs or has another liquidity event, with the full consideration of the deal valued at $210 million.

Klein, who was previously on Credit Suisse’s board of directors and is a key architect of the spin out of its investment banking business, has been named chief executive of banking, head of its Americas operation and CEO designate of CSFB.

“This is a very fair price,” Credit Suisse CEO Ulrich Koerner said in an interview with Bloomberg Television last week. “This is 100% the right deal at the right price, and there is no conflict of interest.”