Apollo Global Management Inc. (NYSE: APO) inches down in pre session on Tuesday as the firm is one of the investors interested in taking a stake in Credit Suisse Group AG’s (NYSE: CS) new investment bank unit, as the lender continues to seek investors to help fund its spin-off, according to the Wall Street Journal.
The talks with Apollo are still ongoing and could fall through, according to the paper, which did not provide any further details. Last month, Bloomberg reported that Credit Suisse was gauging interest from a number of private equity firms in taking stakes or funding specific businesses such as leveraged finance.
Following years of scandals and management blunders, Credit Suisse is overhauling its business. The new strategy calls for Credit Suisse First Boston to spin off its capital markets, advisory, and leveraged finance businesses into a boutique entity, while integrating its remaining trading businesses more closely with wealth management. As part of its carve out strategy, it is also working on an agreement to purchase Michael Klein’s advisory firm.
The Zurich-based bank has already received a commitment for a $500 million investment from a “highly respected investor,” according to Credit Suisse Chief Executive Officer Ulrich Koerner, who announced the new strategy. He did not name the investor.
Apollo agreed to buy Credit Suisse’s securitized products group in November, which provides loans to finance growth, acquisitions, working capital, and other initiatives.
Credit Suisse did not respond to requests for comment.
CEO of Apollo Global Management and Chairman of the Foundation Board, Marc Rowan stated the Apollo Opportunity Foundation builds on Apollo’s legacy of mobilizing employees across the company to take concrete action. This first round of grants awarded to nonprofits leading the charge for positive change in their communities lays the groundwork for what they can accomplish as a firm to expand opportunity over the next decade and beyond.
Global Head of Citizenship and Executive Director of the Foundation, Lauren Coape-Arnold stated they are extremely proud of the Apollo Opportunity Foundation’s progress in its first year. Employees from across the company has been deeply involved, and the Foundation has helped to further ignite their passion for community engagement by assisting us in selecting 11 fantastic organizations.
