Credit Suisse to Unload “Significant” Part of its Securitized Products Group to Apollo Global Management

Credit Suisse announced it would accelerate the radical restructure of its investment bank by selling a “significant” part of its Securitized Products Group and other related financing businesses to private equity firm Apollo Global Management.

The transaction, along with the expected sale of other portfolio assets, is expected to reduce SPG assets to approximately $20 billion from $75 billion. The transaction is expected to close by the middle of 2023.

The sales will also bring down the Swiss bank’s risk-weighted assets by approximately $10 billion. Its CET1 capital ratio, a gauge of financial health, will be strengthened as well. The $20 billion in remaining assets, which will generate income to support the exit from the SPG business, will be managed by Apollo.

Credit Suisse said the move represented an “important step towards a managed exit from the Securitized Products business, which is expected to significantly de-risk the investment bank and release capital to invest in Credit Suisse’s core business.”