NEW YORK (Reuters) - Credit Suisse CSGN.VX said Tuesday it is buying a majority stake in Asset Management Finance Corp (AMF), a company that provides capital to asset managers, from National Bank of Canada (NA.TO).
The deal expands Credit Suisse’s services for asset managers as the credit crunch makes it harder for money managers to secure capital. The Swiss bank hopes to expand AMF’s business outside the United States, and potentially to alternative asset managers from its current focus on traditional managers.
New York-based AMF was founded in 2003 by Norton Reamer, a former chief executive of Putnam Investments and the founder of United Asset Management.
AMF provides capital to asset managers in exchange for a portion of the company’s revenues for a finite period of time. The company remains a passive investor.
Credit Suisse is paying $384 million for an 80 percent stake in the business. It is issuing new stock to pay for the deal.
Reporting by Dan Wilchins, additional reporting by Svea Herbst in Boston, editing by Jeffrey Benkoe