Credit Suisse announced today that it has entered into a framework and exclusivity agreement to transfer a significant portion of its Securitized Products Group (SPG) and other related financing businesses to an investor group led by Apollo Global Management.

The move forms a key part of the bank’s strategic review, announced today, which is designed to reduce risk-weighted assets and leverage exposure as Credit Suisse shifts its Investment Bank towards an advisory-focused model.

Under the terms of the proposed transaction, investment vehicles managed by affiliates of Apollo and PIMCO would acquire the majority of SPG’s assets and other related financing businesses from Credit Suisse, form a new platform to enter into an investment management agreement to manage the residual assets on Credit Suisse’s behalf, hire SPG team members to the new platform and receive certain ongoing services from Credit Suisse in order to maintain a seamless, high-touch experience for clients.

Credit Suisse’s Securitized Products Group is a full-service, vertically integrated credit solutions provider to a range of incumbent and emerging lenders across residential and commercial real estate, consumer and other asset classes.

Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse, commented:

“In July, we announced our intention to bring third-party capital to our Securitized Products Group as part of our broader strategic review. We have been delighted by the broad interest in this high-quality franchise and are pleased to partner with Apollo and PIMCO on the next stage of its growth.”

The transaction proposed under the framework agreement is subject to the signing of final binding documentation, which is anticipated during the fourth quarter of 2022. Closing of the proposed transaction would be subject to customary closing conditions and regulatory approvals and would be expected to occur during the first half of 2023.