The FINANCIAL — Credit Suisse has entered into an agreement to purchase from Fortis Bank Nederland its Prime Fund Solutions business ("PFS"), one of the global leaders in hedge fund administration services.
The acquisition enhances Credit Suisse’s offering to the alternative investment community through PFS’ leading services, which include independent administrative services, investor services, net asset value calculation, banking, custody and financing solutions.
“Credit Suisse and PFS will work together to provide hedge fund managers and their investors best-in-class solutions, and to address the growing demand for asset transparency, consolidated client reporting and improved operating standards for administrators. PFS is a strong fit with Credit Suisse’s client-focused, capital-efficient strategy and further strengthens our Investment Bank’s leading equities franchise by creating a more complete solution for our hedge fund clients,” said Philip Vasan, Head of Prime Services at Credit Suisse. Credit Suisse currently provides a wide range of services to hedge funds and institutional clients, including prime brokerage, start-up services, capital introductions, securities lending, synthetics and innovative financing solutions.
"PFS has been a leading service provider to the alternative investment industry for over 40 years and currently services single-manager and fund of hedge funds from centers in Dublin, the Cayman Islands, Hong Kong and several other global locations," Credit Suisse says.
Jan van Rutte, Vice-Chairman of Fortis Bank Nederland, said: “We believe Credit Suisse’s leading brand and global reach, together with PFS’ industry-leading service proposition, will further enhance service to clients of PFS and Credit Suisse and propel the business globally.”
The closing of the transaction is subject to regulatory approvals and other customary conditions. Upon closing, the purchase of PFS is expected to have a de minimis impact on Credit Suisse’s goodwill and regulatory capital.