Credit Suisse’s new CEO is hinting at expanding the firm’s asset management business through acquisitions.
Since taking over the Swiss bank July 1, Tidjane Thiam has talked to the company’s top investors about building the asset management business further, reports the Financial Times. Thiam is expected to start cutting away at the underperforming parts of Credit Suisse in exchange for boosting the more successful businesses, such as private banking. He seems to have the most faith in asset management to provide Credit Suisse with strong cross-selling potential with the private bank, and its need for less capital to run than investment banking. Writes the FT:
A top 20 investor said: “In asset management, he has a ragbag of businesses . . . That is definitely an area that he wants to build up. I think it will be more gradual than anything big, but that’s definitely on the agenda.”
Acquisitions would strengthen the asset management arm, and give Credit Suisse an excuse to raise more capital from investors. Credit Suisse’s asset management business had about SFr$392 billion under management at the end of March. The firm sold part of its asset management business to Aberdeen Asset Management in the wake of the financial crisis, handing over about SFr$75 billion.
Thiam is expected to reveal his strategy in November. He comes to the firm from Prudential where he worked on M&A activity as CEO.
Photo: Credit Suisse