Credit Suisse Group AG
) announced an agreement to sell its remaining limited
partnership interests in DLJ Merchant Banking Partners, a private
equity group, to Coller Capital. Notably, Credit Suisse had
acquired DLJ Merchant Banking Partners after its takeover of
Donaldson, Lufkin & Jenrette in 2000.
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London-based Coller Capital is a leading global investor in the
private equity secondary market. The firm acquires original
investors' stakes in private equity funds as well as stakes in
companies from financial institutions and corporate bodies.
As per the deal, Credit Suisse will shed its stake in DLJ
Merchant Banking Partners IV, a $2.1 billion private equity fund
raised in 2008. The deal follows the company's divestment of DLJ
Investment Partners LP, DLJ Investment Partners II LP and DLJ
Investment Partners III LP to Connecticut-based Portfolio
Advisors in November.
For Credit Suisse, the latest stake sale will expectedly reduce
expenses. Moreover, by offloading its non-core businesses, the
company will be able to focus better on core operations.
Moreover, the move is part of Credit Suisse's attempts to comply
with the Volcker Rule, which poses restrictions on banks'
exposure to risky activities such as proprietary trading or
owning hedge funds or private equity funds.
Recently, Credit Suisse has been vending its private-equity units
that allocate money to hedge funds and other investment managers.
Notably, in August, Credit Suisse sold its secondary private
equity business, Strategic Partners, to
The Blackstone Group L.P.
). In the same month, the company announced the intention to
divest its private-equity unit Customized Fund Investment Group
to Chicago-based Grosvenor Capital Management LP.
Currently, Credit Suisse carries a Zacks Rank #4 (Sell). Some
better-ranked banks include
Fifth Third Bancorp
). Both these stocks carry a Zacks Rank #2 (Buy).