Credit Suisse Sells its Funds to Pátria; Behind the Scenes of this Operation

Following the complete sale of the company to UBS, Credit Suisse is exiting the world of Real Estate Investment Funds

Sylvia B. Coutinho, Head of Brazil and Latin America at UBS, has been overseeing Credit Suisse operations in Brazil since March

By: SiiLA News

12/08/2023

In a press release issued yesterday (6), it was announced that a commitment has been made to purchase and sell the Brazilian arm of Credit Suisse's real estate fund management business (Credit Suisse Hedging-Griffo Real Estate) to asset manager Pátria Investimentos for R$650 million.

This development signifies another significant transaction involving the Swiss financial institution. In March 2023, UBS Group AG, also a Swiss bank, agreed to acquire Credit Suisse for 3 billion Swiss francs.

The recent transaction involves eight CSHG funds, encompassing logistics, receivables, fund of funds, urban, residential, and three office funds. According to the asset manager, the assets are valued at approximately US$2.4 billion.

Sylvia B. Coutinho, Head of Brazil and Latin America at UBS, explained that this decision aligns with the company's global strategy, and Pátria was selected following an extensive and competitive process. "As we navigate the process of integrating Credit Suisse's global and regional operations with UBS, we assessed the strategic fit, distribution channels, and growth potential of each business line. Consequently, we initiated a competitive process to identify the right manager to take over this business, and we chose Pátria," she stated.

Marcello Chilov, CEO of Credit Suisse Brazil and Head of UBS Global Wealth Management Latin America, commented, "UBS has a longstanding relationship with Pátria, a manager with solid expertise and a longstanding presence in the Brazilian market. We are confident that they are well-prepared to serve the fund investors and propel the business forward.

Behind the Scenes of the Transaction

Pátria was not the only interested party in the transaction; Vinci Partners was also interested in acquiring Credit Suisse's funds. Among investors, there was some discomfort and apprehension about this transaction, as Danilo Barbosa, Partner-Director of Research and Financial Planning at Clube FII, explains.

"The market was a bit apprehensive before the acquisition announcement because it was between Vinci Partners and Pátria. There was a question about whether to maintain the current management team, which everyone knows, is very good, and has been in the market for a long time—a team with experience," he said.

In the announcement, it was revealed that the CSHG Real Estate team would be transferred to Pátria. Barbosa sees this as positive and a relief for investors.

"This takes some pressure off the FIIs. The next steps are for CSHG to convene the assemblies to make the migration, but before that, there is approval from the CAD, there are still some steps to complete, and this may take some time because there needs to be approval at the EGM, and the CSHG team is committed now. The good thing is that nothing happened, in the end, nothing will change, analysts were expecting this. The people in charge there will be the same," he concludes.

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