Fortis Sells Prime Fund Solutions Unit

Fortis Netherlands has sold its Prime Fund Solutions (PFS) business to Credit Suisse for an undisclosed sum. The nationalised bank has been in discussions with Credit Suisse since December 2009 about the deal, which hopes to be completed by the end of the year
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Fortis Bank Netherlands has sold its Prime Fund Solutions (PFS) business to Credit Suisse for an undisclosed sum. The nationalised bank has been in discussions with Credit Suisse since December 2009 about the deal, which hopes to be completed by the end of the year.

Fortis NL has been looking to cut costs and unload unwanted business units after the Dutch government nationalized the Dutch arm of Fortis in 2008 for 16.8 billion. In September 2008 it sold Intertrust to Waterland Private Equity Investments, and according to Bloomberg, its commercial banking unit is up for sale.

The sale of PFS “allows Fortis Bank Nederland to re-focus on its core banking activities,” explained Jan van Rutte, vice-chairman, Fortis Bank Nederland.

According to Mark Boyes, director of Business Development, Butterfield Fulcrum, and previous Fortis employee: “Credit Suisse is looking to expand its market share of fund administration. They have a global presence and administration will help leverage revenue streams from existing and new client base.”

Many clients of PFS will be relieved a global name such as Credit Suisse has extracted the business from the Dutch government. “Credit Suisse is a big name, and it certainly won’t hurt [clients],” said Boyes. “At the same time, any change of ownership always raises questions and potentially can cause concern, necessary or unnecessary, regarding changes in management or operations structure.”

PFS currently services single-manager and fund of hedge funds from Dublin, the Cayman Islands, Hong Kong and several other global locations.

According to Philip Vasan, head of Prime Services, Credit Suisse, the two business will work together to “address the growing demand for asset transparency, consolidated client reporting and improved operating standards for administrators.”

Credit Suisse currently provides prime brokerage, start-up services, capital introductions, securities lending, synthetics and financing solutions.

“PFS is a strong fit with Credit Suisses client-focused, capital-efficient strategy and further strengthens our Investment Banks leading equities franchise by creating a more complete solution for our hedge fund clients, continued Vasan.

The move may also double-up on Credit Suisse’s investment in Viteos Fund Services, a fund administrator and operational outsourcing service provider. Credit Suisse outsourced a number of middle-office and internal prime brokerage operations to Viteos in 2007.

In the Global Custodian Archive: Fortis PFS in 2005

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