Credit Suisse Group plans to sell two U.S.-based private equity units within its money management division in a shift toward more liquid investments.
The investment bank will sell the customized fund investment group and the strategic partners secondary fund business, Credit Suisse spokeswoman Suzanne Fleming said Wednesday. The divisions have raised a combined $36 billion in their history.
Credit Suisse told investors it's exiting the businesses in part because of uncertainty around the Volcker rule, which limits banks' total investments in hedge funds and private equity funds to prevent them from taking on too much risk.
Credit Suisse said the units for sale have “limited synergies” with its other money management units, which are more capital efficient and less likely to run afoul of overhauled financial regulations.
The customized fund group, headed by Kelly Williams, managing director, works with clients such as endowments to invest in a range of private equity funds, according to the bank's website. The business has raised about $25 billion.
Strategic partners, run by Global Head Stephen Can, manages secondary funds, which buy stakes in private equity funds from other investors. That group has pooled about $11 billion since its creation in 2000. Mr. Can finished raising the fifth fund, totaling $2.9 billion, this year.