NEW YORK — Executives for Credit Suisse Group are strategizing to keep the firm's U.S. asset management business afloat following a spate of employee and client departures that cut the firm's American asset base by one-third the last year.
As the bank forges ahead with a year-long strategy to more closely align its three primary businesses — investment banking, private banking and asset management — Credit Suisse officials are betting on its "One Bank" integration project to revive New York-based Credit Suisse Asset Management's operations and its overall business in the Americas.
"We are moving to put all of our intellectual capital around managing money in one place, rather than having it in several different places," said Richard Thornburgh, executive vice chairman of Credit Suisse First Boston and leader of the firm-wide integration project in New York. "We're making sure that we distribute all of our products through all three of our channels, which we have never done before."
Specifically, Mr. Thornburgh said that the investment bank's Alternative Capital Division will have a dual reporting line into both the investment bank and CSAM as part of the integration. This, Mr. Thornburgh said, will not only allow CSAM to continue to offer hedge fund-of-fund strategies, but also to provide private equity offerings, something Mr. Thornburgh said CSAM has never offered before.
Zurich-based Credit Suisse Group also combined two CSAM and Credit Suisse Prime Services units to create a cash and short-duration business within CSAM. Mr. Thornburgh said cash management can be an "early window" into managing fixed-income strategies for corporations, and in general allows for "broader dialogue" with corporate clients.