Exclusive-Credit Suisse markets CSFB as ‘super boutique’, sees revenue rebound By Reuters

By Paritosh Bansal

(Reuters) – Credit Suisse Group AG is marketing its First Boston investment banking unit to investors as a “super boutique” and sees revenue surging to as much as $3.5 billion, as the embattled lender seeks to raise funds for the revamped business, a company document seen by Reuters shows.

The marketing presentation, which has not been previously reported, shows the Swiss bank is betting on an aggressive rebound at CS First Boston (CSFB) after revenue plunged 69% in 2022.

In the sales pitch to investors, dated January, the bank said it aspires to surpass the $2.5 billion net revenue target it set out only last October for the unit, taking into account that the business will be independent and assuming “a normalized market environment.”

The bank also lays out in greater detail its reasoning for the restructured division’s competitive edge in a crowded investment banking market. CSFB, the presentation said, would be a “super boutique”, more focused than large banks but broader than advisory firms that do not offer services such as financing.

The pitch to investors comes as the deals market posted a marked slowdown last year that hit many Wall Street firms, with bankers projecting a slow start to the year.

The marketing presentation, which includes detailed terms for its $500 million capital raise, reveals for the first time that the Swiss bank is looking to raise the funds through a five-year exchangeable debt security, paying 6% annual interest.

The money will be raised by the parent, Credit Suisse, and investors will have to swap their the notes into shares of CSFB if there’s a spin-off or initial public offering.

The bank is targeting an IPO for CSFB in 2024 or 2025, a source familiar with the situation said.

Credit Suisse declined to comment for this article.

OVERHAUL PLAN

Last October Credit Suisse embarked on an overhaul of the bank, which has suffered billions of dollars in losses from a series of scandals and is now on its third chief executive in three years.

It plans to shed riskier assets and focus on more profitable businesses such as wealth management. One major piece of the restructuring is the creation of CSFB, reviving the First Boston brand, which Credit Suisse had first bought into in 1988.

The plan is for CSFB to operate as an independent capital markets…