UBS has sold $8 billion in senior secured loans to alternative asset manager Apollo as part of its efforts to divest non-core assets from its acquisition of Credit Suisse last year.

UBS said it expects to make a net gain of about $300 million from the deal in the first quarter of 2024 while Credit Suisse AG is expected to have a net loss of around $900 million.

The transition agreement relates to Credit Suisse’s liquidity crisis in 2022, which ultimately led to the bank’s sale in 2023. In 2022, Apollo agreed to acquire most of Credit Suisse’s securitized products group, which rebranded as Atlas SP. UBS purchased Credit Suisse in 2023 through a government-brokered transaction.

The sale to Apollo concludes a series of transactions undertaken by Credit Suisse prior to its takeover by UBS. These transactions, particularly the sale of its securitized products segment to Apollo, attempted to unload profitable but capital-intensive elements of the business.

UBS’s CEO, Sergio Ermotti, emphasized the deal as a testament to the bank’s “relentless focus on working with clients and counterparties to free up capital from non-core activities and reducing costs and complexity.”

Apollo CEO Marc Rowan said the two parties finalized the deal in an “economically neutral manner for our firm.”

“This caps off a quarter marked by record origination and capital raising for Atlas, where we have generated $24 billion originations since inception and have secured capital to support over $40 billion of client assets.”