Credit Suisse has signed two separate agreements to sell its global trust business to Butterfield and Gasser Partner.
Butterfield will acquire the Swiss bank’s trust businesses in Guernsey, Singapore, and the Bahamas; Gasser Partner will acquire the Liechtenstein trust business.
Credit Suisse Trust (CST) will continue to operate with a limited number of clients.
The transaction with Butterfield is expected to close in the first half of 2023, 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, Credit Suisse said.
The CST-related legal entities and any residual business will be wound down by Credit Suisse over the next few years.
Butterfield has bought a number of trust and company administration businesses over the past decade, including the Guernsey-based Legis Group in 2014, the Bermuda-based trust unit of HSBC in 2016, and Deutsche Bank’s Global Trust Solutions business in 2018.
Butterfield’s trust business employs more than 230 professionals and consists of independently incorporated trust companies located in the Bahamas, Bermuda, the Cayman Islands, Guernsey, Singapore, and Switzerland, as well as a support service centre in Mauritius.
Michael Collins, Butterfield’s chairman and chief executive officer, said Butterfield will be acquiring Credit Suisse trust management businesses in strategically important markets for the group.
“This transaction expands our global trust operations in Singapore, Guernsey, and The Bahamas and enhances our fee-based revenue income,” he said in a press release.
“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,” he added.
Michael Strobaek, head of investment solutions and sustainability at Credit Suisse, said the bank regularly reviews its product and services portfolio.
“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,” Strobaek said.
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