UBS Unloads Mortgage Unit to Sixth Street-Led Consortium
UBS Group has decided to sell Credit Suisse’s U.S. mortgage servicing business to a consortium of investors led by Sixth Street Partners, according to a Bloomberg report,
This week, the Swiss bank revealed in its second quarter earnings report that it had reached an agreement to sell the unit, but it did not reveal who the buyer. It stated that the transaction would reduce the bank’s risk-weighted assets by around $1.3 billion.
The decision comes as UBS looks to sell or wind down unwanted assets inherited from former rival Credit Suisse. With the completion of the merger of Credit Suisse, UBS said it is moving on to the next phase of client migrations to unlock additional cost, capital, funding, and tax savings.
Sixth Street, a $75 billion alternative asset manager, is collaborating with co-investor Davidson Kempner Capital Management on the agreement to buy UBS’s Select Portfolio Servicing, Bloomberg reported, citing people familiar with the matter. The sale is expected to close in the first quarter of 2025.
Credit Suisse bought Select Portfolio, formerly Fairbanks Capital, in 2005, according to the article. UBS purchased Credit Suisse in an emergency rescue last year.
