Credit Suisse winds down $10 billion finance funds

ZURICH: Credit Suisse said on Friday it is winding down its $10 billion supply chain finance funds, which were mostly invested in notes backed by speciality finance firm Greensill.

London-based Greensill group is preparing to file for insolvency and is in talks to sell parts of its business to US private equity firm Apollo Global Management Inc, sources close to the matter said, after the loss of backing from asset managers Credit Suisse and GAM.

Greensill declined to comment on the insolvency preparations or the Credit Suisse move. Apollo also declined to comment.

“The fund boards have now decided to terminate the funds. Credit Suisse Asset Management’s priority is to ensure a balance between a timely liquidation of the funds and maximizing value for the investors,” the Swiss bank’s fund arm said.

Credit Suisse’s asset management arm added in a statement on Friday that it was closing the funds as a result of valuation uncertainties, reduced availability of insurance coverage for new investments and challenges in sourcing suitable investments.

Switzerland’s second-largest bank had on Monday suspended redemptions from the funds backing Greensill’s lending operations over concerns about being able to accurately value them, and on Wednesday said it was looking to return excess cash to shareholders.

Credit Suisse said the funds had experienced “reduced availability of insurance coverage for new investments”, but declined to say if existing investments were protected.