Credit Suisse sees First Boston IPO by 2025 amid investor search

Credit Suisse Group AG’s top executive said he expects to take the firm’s carved-out investment bank public by 2025 as he continues to search for investors in the business that will revive the storied First Boston name.
 

“We have a very clear plan to put it into market, creating a liquidity event, most likely an IPO, and expect such an event in 2025,” Ulrich Koerner, the chief executive officer of Credit Suisse, said in an interview with Bloomberg TV’s Francine Lacqua.
 

Asked if the bank was closer to finding an anchor investor, Koerner said “we are close to, but I don’t know if it’s an anchor investor. We have a lot of interest from third parties to be invested.” 
 

The First Boston spinoff is a centerpiece of Koerner’s restructuring plan, unveiled last year after racking up huge losses and battling to retain top talent following a string of scandals. In separating the business, the CEO is seeking to protect the best-performing investment bank parts, such as advising on mergers and acquisitions, while pivoting the parent company further toward wealth management.
 

Credit Suisse announced earlier today that senior leaders in the carved-out unit are expected to receive up to 20% of shares. Employees would receive restricted share units after an IPO, which would vest three years later and be subject to a further holding requirement.
 

Credit Suisse previously said it wants to be ready to list the unit by the end of 2024 or early 2025. As part of the carve-out, the investment bank boutique of former board member Michael Klein, who had pushed for the plan, will be integrated into CS First Boston. Credit Suisse, which agreed to buy Klein’s business, will remain majority shareholder of CS First Boston, Koerner said.