Credit Suisse Group will combine the various business operations of its investment banking and asset management units into three separate operations - asset management, private client services and corporate and investment banking - over the next 18 to 24 months, company officials said today.
As part of the asset management restructuring, Credit Suisse will spin off but retain a significant ownership stake in its private equity business, DLJ Merchant Banking, led by Tom Dean. Two hedge funds, the Credit Opportunities Fund, managed by Bennett Goodman, and the Diversified Credit Strategies Funds, managed by Jack DiMaio, will also be divested in early 2005, though CSG will retain significant ownership in both funds. An internal memo to Credit Suisse staff obtained by P&I Daily explained that the private equity and hedge fund vehicles have grown to the point that they are competing with major investment banking clients of the firm. The funds are being spun out to minimize competition.
Global alternative investment management strategies will be expanded, including hedge funds of funds and real estate, according to the company's public statement.