UBS has sold Credit Suisse's securitization products business to Apollo Global Management as part of its efforts to gradually divest non-core assets after acquiring the bankrupt banking giant.
The Zhitong Finance App learned that UBS (UBS.US) has sold Credit Suisse's securitization products business to Apollo Global Management (APO.US) as part of its efforts to gradually divest non-core assets after acquiring the bankrupt banking giant.
UBS said on Wednesday that Apollo will acquire $8 billion of “advanced secured financing instruments,” adding that it expects to receive about $300 million in net revenue from the deal in the first quarter of 2024.
“This mutually beneficial agreement is in line with UBS's strategy to gradually reduce and simplify non-core and legacy portfolios,” UBS said in a statement.
According to information, Credit Suisse began this process in 2022. At the time, the bank said it would gradually reduce the business of securitized products such as mortgages.
According to the plan, approximately $20 billion of remaining assets will remain on Credit Suisse books, but will be managed by Apollo.
A UBS spokesperson said that UBS will keep assets that have not been transferred to Apollo. The value of UBS's remaining former assets is currently unclear.
UBS CEO Sergio Ermotti said the deal would free up capital from non-core businesses and reduce costs and business complexity.