Credit Suisse (SIX:CSGN) Group AG has launched an auction that could see its American asset management arm sold as it attempts to reshape after several scandals, Reuters reported, citing a source close to the matter.
Initial interest from prospective buyers, likely to be a private equity firm, is due at the end of this week, the source told the newswire.
The Swiss lender reportedly approached at least one Middle Eastern sovereign wealth fund for a capital injection, Reuters said.
There is no guarantee of a sale despite the auction for the unit, which includes a platform for investing in collateralised loan obligations.
Credit Suisse’s asset management business managed approximately US$447bn and had around 1,200 employees as at end-June, according to the bank's website.
Credit Suisse has been attempting to recover from numerous scandals including the loss of over US$5bn from the collapse of investment firm Archegos last year, when it also suspended client funds linked to failed financier Greensill.
Several large lenders have divested US asset management units recently amid more competition from large managers and squeezed fees from the shift to so-called passive investing.
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