Credit Suisse Acquires Majority Interest in Asset Management Finance Corporation
Credit Suisse Group today announced the acquisition on behalf of its Alternative Investments business of a majority interest in Asset Management Finance Corporation (AMF) from National Bank Financial of Canada (NBF). Credit Suisse Group will acquire over 80% of AMF for USD 384 million of newly issued Credit Suisse Group stock.
AMF provides capital to asset managers in exchange for a passive, non-voting, limited term interest in a manager’s future revenues.
Founded in 2003 and headquartered in New York, AMF provides asset management firms with capital while allowing them to maintain their ownership, independence and operational autonomy. Since its formation, AMF has completed 12 transactions with both traditional and alternative managers with aggregate assets under management of approximately USD 50 billion. AMF’s investments are diversified across a broad range of strategies including emerging markets, large and small cap equities, real estate, currency, timber and wealth management. The firm’s capital has been used by asset managers seeking funding for a broad range of initiatives including owner liquidity, internal equity transfers, management buy-outs and other strategic objectives.
Norton Reamer, AMF’s President and CEO, and the AMF management team will remain in place, retain an equity position and continue to oversee the day-to-day business. National Bank Financial of Canada and Tokio Marine & Nichido Fire of Japan have elected to continue to participate with Credit Suisse in AMF’s future growth and be represented on its board.
Brian Finn, Chairman of Credit Suisse’s Alternative Investments business, said: “This transaction is consistent with our strategy of adding leading investment businesses to our platform. AMF has a significant pipeline due to the demand for capital from a significant number of high-quality asset managers. In addition, AMF has significant opportunities for growth outside the US. We look forward to leveraging our single-center of excellence model to expand and grow AMF’s business. We warmly welcome Norton and his team to the Credit Suisse family.”
Norton Reamer said: “AMF has made great strides in its first five years, and this is an exciting new stage in our evolution. Having Credit Suisse as a partner will bring global resources and scale to AMF and its partner firms and we are excited to be associated with this world-class organization. Our partnership with Credit Suisse will strengthen our ability to identify and attract exceptional investment managers with strong growth potential. It is a win-win for all.”
Credit Suisse’s Alternative Investments business has a number of strategic relationships with industry leaders around the world, including Ospraie, Abu Dhabi Future Energy Company, Mubadala Development, Gulf Capital Partners, China Renaissance Capital Investment, GE (Global Infrastructure Partners), and a partnership with a leading team of professionals focused on private equity investment opportunities in Latin America.
The transaction has already received all necessary regulatory approvals and will close in the course of today.
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