Credit Suisse sells its global trust business
CREDIT SUISSE has signed separate agreements with Butterfield and Gasser Partner for the sale of its global trust business Credit Suisse Trust. CST entities will continue to operate with a limited number of clients.
Under separate agreements, Butterfield will acquire CST’s businesses based in Guernsey, Singapore and the Bahamas, while Gasser Partner will acquire CST’s Liechtenstein business.
The transaction with Butterfield is expected to close in the first half of 2023 and is subject to customary conditions, including regulatory approvals. The transfer of the trust structures in Liechtenstein will occur on a rolling basis and is also expected to complete in the first half of 2023. Upon completion of the transactions, Butterfield and Gasser Partner will take over the ongoing management and administration of most of the trust structures in the respective jurisdictions. A significant portion of CST’s employees are expected to transfer to Butterfield. The CST-related legal entities and any residual business will be wound down by Credit Suisse over the next few years.
‘Credit Suisse regularly reviews its product and services portfolio to meet the evolving needs of our clients,’ said Michael Strobaek, head of investment solutions and sustainability at Credit Suisse. ‘Over the past months we have carefully considered how we can best continue to serve our clients who have sophisticated trust needs. Both Butterfield and Gasser Partner specialise in full-service trust structures and solutions dedicated to clients with bespoke needs.’
All parties are committed to ensuring a seamless transition with a focus on the continuation of services for trust clients. With the completion of the transfers, clients will have continued access to sophisticated and comprehensive trust services through either Butterfield or Gasser Partner.
‘Credit Suisse is a preeminent wealth management franchise and we are delighted to be acquiring its trust management activities in strategically important markets for our company,’ said Michael Collins, Butterfield’s chairman and chief executive officer. ‘This transaction expands our global trust operations in Singapore, Guernsey and the Bahamas and enhances our fee-based revenue income. This is another important step in our strategy to grow through M&A in markets where we have scale and have a market leadership position. It underscores our continuing commitment to expand Butterfield’s presence in Asia, the Channel Islands and the Bahamas.’
