Credit Suisse Group announced the acquisition on behalf of its Alternative Investments business of a majority interest in Asset Management Finance Corporation (AMF) from National Bank Financial of Canada (NBF). Credit Suisse Group will acquire over 80% of AMF for USD 384 million of newly issued Credit Suisse Group stock.
AMF provides capital to asset managers in exchange for a passive, non-voting, limited term interest in a managers future revenues.
Norton Reamer, AMFs President and CEO, and the AMF management team will remain in place, retain an equity position and continue to oversee the day-to-day business. National Bank Financial of Canada and Tokio Marine & Nichido Fire of Japan have elected to continue to participate with Credit Suisse in AMFs future growth and be represented on its board.
“This transaction is consistent with our strategy of adding leading investment businesses to our platform,” says Brian Finn, chairman of Credit Suisses Alternative Investments business. “AMF has a significant pipeline due to the demand for capital from a significant number of high-quality asset managers. In addition, AMF has significant opportunities for growth outside the US. We look forward to leveraging our single-center of excellence model to expand and grow AMFs business. We warmly welcome Norton and his team to the Credit Suisse family”
“AMF has made great strides in its first five years, and this is an exciting new stage in our evolution,” says Norton Reamer. “Having Credit Suisse as a partner will bring global resources and scale to AMF and its partner firms and we are excited to be associated with this world-class organization. Our partnership with Credit Suisse will strengthen our ability to identify and attract exceptional investment managers with strong growth potential. It is a win-win for all”
The transaction has already received all necessary regulatory approvals.