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Credit Suisse (CS) Signs Deals With Butterfield, Gasser Partner

Zacks Equity Research
·4-min read

Credit Suisse Group AG CS has signed two separate agreements with The Bank of N.T. Butterfield & Son Limited and Gasser Partner Trust to sell its global trust business. Per the agreements, Butterfield will acquire Credit Suisse Trust’s businesses based in Guernsey, Singapore and the Bahamas, whereas Gasser Partner will acquire its Liechtenstein business. The Credit Suisse Trust entities will continue to operate with a limited number of clients.

Headquartered in Bermuda, Butterfield is a leading offshore bank and trust company that provides international private trust services. It has grown through a combination of organic growth and acquisitions. Butterfield’s trust business employs more than 230 people.

Operating for more than 70 years, with offices in Vaduz, Zurich and Vienna, Gasser Partner is a registered trust company and forms part of the Gasser Partner law firm in Liechtenstein, which advises high-net-worth individuals and institutional clients in all areas of law, including fiduciary services.

Notably, the transaction with Butterfield is expected to close in the first half of 2023, subject to customary conditions, including regulatory approvals.

The transfer of the trust structures in Liechtenstein will occur on a rolling basis and likely close in the first half of 2023.

Once the transactions are complete, Butterfield and Gasser Partner will take over the ongoing management and administration of most of the trust structures in the respective jurisdictions. Also, clients will have continued access to sophisticated and comprehensive trust services through either Butterfield or Gasser Partner.

Michael Strobaek, the head of investment solutions & sustainability at Credit Suisse, stated, “Credit Suisse regularly reviews its product and services portfolio to meet the evolving needs of our clients. Over the past months we have carefully considered how we can best continue to serve our clients who have sophisticated trust needs. Both Butterfield and Gasser Partner specialize in full-service trust structures and solutions dedicated to clients with bespoke needs.”

Butterfield’s chairman and CEO, Michael Collins, added, “Credit Suisse is a preeminent wealth management franchise, and we are delighted to be acquiring its trust management activities in strategically important markets for our company. This transaction expands our global trust operations in Singapore, Guernsey, and The Bahamas and enhances our fee-based revenue income.”

Johannes Gasser, a senior partner at Gasser Partner, said, “We have been privileged to provide services to Credit Suisse Trust in Liechtenstein during many years in the past – as lawyers and as a licensed fiduciary. Over time, we have had the pleasure of building relationships with clients and employees of Credit Suisse Trust and these relationships enjoy a level of trust we strive to earn every day. We know what privilege and duties we will be taking over from Credit Suisse Trust, and we are determined to live up to them.”

Over the past year, shares of CS have lost 51.7% compared with a decline of 10.9% of the industry.

 

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Currently, Credit Suisse carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Divestitures by Other Firms

UBS Group AG UBS agreed to outsource its U.S. alternative investment feeder fund platform, UBS Fund Advisor LLC, to iCapital, a leading global fintech platform driving access and efficiency in alternative investments for the asset and wealth management industries.

UBS’s feeder fund platform, which is referred to as AlphaKeys Funds, represents more than $7 billion in client assets. UBS Financial Advisors will continue to serve their high and ultra-high net worth clients that hold feeder funds, providing advice and solutions to help meet their unique needs and financial goals.

Trustmark Corporation TRMK completed the sale of its Corporate Trust business to The Peoples Bank, a subsidiary of Peoples Financial Corporation. The financial terms of the deal, announced this March, were not disclosed.

Trustmark’s corporate trust business focuses on providing a wide variety of trust and agency services in connection with debt securities issued by public corporations and government entities. As part of the deal, nearly 200 bond issues were transferred to Peoples Bank.


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