UBS Group AG and Apollo Global Management Inc. We have entered into an agreement to separate Credit Suisse Securitized Products (Atlas SP), a former division of Credit Suisse Group, and terminate the investment management agreement with Atlas. This is stated in a UBS press release.
As part of the agreement, Apollo will buy $8 billion worth of priority unsecured securities from UBS.
In November 2022, Credit Suisse entered into a deal to sell the main part of Atlas SP to Apollo, which it planned to complete by mid-2023. However, in March 2023, Credit Suisse was bought out by rival UBS Group for 3 billion Swiss francs ($3.25 billion) with the support of the Swiss government amid fears of an international financial crisis due to the likely bankruptcy of Credit Suisse. As a result of the merger, the total assets under management of UBS and Credit Suisse amounted to $5 trillion.
The agreement with Apollo is in line with UBS's strategy to optimize its portfolio of non-core assets and Apollo's plans to develop Atlas as an independent platform focused on creating an investment-grade company. A significant part of assets and employees Credit Suisse Securitized Products has already been transferred to Atlas SP.
UBS Group expects to make a net profit of $300 million in the first quarter of 2024, taking into account the completion of the transaction and the transfer of the main secured financing mechanisms. At the same time, Credit Suisse AG recognizes a net loss of $900 million
The revised deal will end the controversial investment management agreement with Apollo, as well as the transitional services agreement that Credit Suisse entered into before the takeover by UBS Group.
UBS Group AG is the largest Swiss financial holding company providing a wide range of financial services. UBS offers private, corporate and institutional clients capital management, asset management and investment banking services with international service. The headquarters is located in Zurich (Switzerland).
Apollo Global Management, Inc. is an American global alternative investment management company. The company provides services in the field of lending, private capital and real assets. The headquarters is located in New York (USA).
Credit Suisse Group is the second largest Swiss financial conglomerate after UBS. The headquarters is located in Zurich (Switzerland).
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