Credit Suisse Sets Its Sights On The Super-Rich

Credit Suisse is getting back into the private wealth business in the U.S., creating a new investment banking unit that caters to company founders and entrepreneurs.

According to a report, Credit Suisse said in an internal memo that it hired Charlie Buckley from UBS to create an investment banking group that caters to billionaires. The business would be centered on lending, capital markets and providing mergers and acquisition advice — things not traditionally part of the services found at a wealth planning company. The new group will go after business owners with a lot of money and entrepreneurs in the oil and gas, biotechnology and telecommunications industries. The entrepreneurs could have stakes in the companies worth hundreds of millions of dollars. The investment banking group could forge a relationship with an owner of a technology that’s private, and when that company is ready to go public or sell, they can tap Credit Suisse’s bankers who handle either area.

The move on the part of Credit Suisse comes at a time when the company is shifting its business to focus more on wealth management and pulling back on some of the financial firm’s trading businesses. There is a particular focus on wealth management in Asia. Units within the company that can support the wealth management business are getting the most attention, the bank said during a presentation last year.

While there is a lot of talk about poverty around the world, Credit Suisse is going after the super-rich because there are a lot of them. According to the report, the U.S. has the largest number of millionaires, but Asia is expected to see the most growth. Credit Suisse isn’t alone in its pursuit of the wealthy. All of the big banks are going after this growing and lucrative market.