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Credit Suisse discussing management buyout with Qube team

Credit Suisse Asset Management is negotiating a management buyout of its quantitative and systematic asset management unit.

The team will continue to run the $1 billion quantitatively managed Qube hedge fund.

Qube's management team originally was part of the proprietary trading business of Credit Suisse AG. The team is led by Pierre-Yves Morlat, who joined the Swiss bank in 2009 as head of proprietary arbitrage trading. Mr. Morlat is based in Paris; the rest of the Qube investment team will be located in Paris, London, Hong Kong and Mumbai, confirmed the source.

The buyout deal is expected to close in the fourth quarter.

The Qube fund was launched in the fourth quarter of 2016 and will remain closed to new investors, said a source with knowledge of the deal who asked not to be identified.

Simone Meier, a Credit Suisse spokeswoman, declined to comment.