Credit Suisse to create U.S. banking company for billionaire

© Reuters. A Credit Suisse indication is seen on the outside of their Americas head office in the Manhattan district of New York City

By Olivia Oran (Reuters) – Credit Suisse Group AG (S:-RRB-, which left its U.S. private wealth business in 2014, is developing out a new financial investment banking group in the region to serve billionaires. Switzerland’s second-biggest bank has employed Charlie Buckley from rival UBS Group AG (S:-RRB- to deal with business creators and entrepreneurs, according to an internal memo examined by Reuters on Friday and confirmed by a spokeswoman. Buckley formerly led a team at UBS focused on family workplaces. The group will not supply conventional wealth planning to ultra-wealthy customers, but instead focus on lending, capital markets and M&A suggestions, people acquainted with the bank’s strategies stated. It will target business owners who are already ultra- wealthy, in addition to business owners in markets like oil and gas, biotechnology and telecommunications, whose stakes in their companies could be worth numerous millions of dollars, among the people added. The lenders might, for instance, cultivate a relationship with the chief executive of a personal technology business. When the business owner prepares to sell business or take it public, they could present the CEO to Credit Suisse lenders who deal with M&A or stock offerings. The build-out comes as part of a broader strategic shift at Credit Suisse in which CEO Tidjane Thiam is scaling back particular trading businesses and focusing more on wealth management, especially in Asia. Credit Suisse is concentrating on areas within the investment bank that support its wealth management unit, according to a presentation last October as part of the bank’s tactical review. Credit Suisse is likewise winding down companies that need excessive capital or in which it lacks the scale to contend, such as its U.S. wealth management business. Wells Fargo & & Co (N:-RRB- last year struck an arrangement with Credit Suisse for the right to recruit U.S. brokers who work for the Zurich-based bank. Banks are significantly aiming to supply services to the ultra-rich, which represents the fastest-growing section of households. The United States has the highest number of millionaire homes, although the most significant development in personal wealth is anticipated to come in Asia, according to a report from Boston Consulting Group. Credit Suisse on Thursday posted a surprise earnings for the 2nd quarter, increasing Thiam’s efforts to restructure the bank.
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