Credit Suisse Overhauls Investment Bank's Top Brass -- 2nd Update
September 18 2017 - 11:04AM
Dow Jones News
By Brian Blackstone in Zurich and Ben Dummett in London
Credit Suisse Group AG on Monday unveiled a raft of changes to
the upper ranks of its investment bank, bringing in new co-heads
for Europe, the Middle East and Africa as the Swiss banking giant
revamps the division amid a broader strategic overhaul.
Mathew Cestar and Jens Welter, both Credit Suisse veterans, have
been appointed co-heads of investment banking and capital markets
for the region. They succeed Marisa Drew and Mark Echlin, who have
moved on to other positions within the bank.
The management shuffle comes as the Swiss banking giant
undertakes a broad strategic shift to put greater emphasis on its
more predictable wealth management operations while scaling back
investment banking, which can be highly profitable but also
volatile.
While investment banking has recently proven to be attractive
for Credit Suisse, with revenues and profit up sharply in the first
half of 2017, the bank lags behind its U.S. rivals.
Credit Suisse ranked ninth in the first half of this year
measured by investment banking revenue for Europe, the Middle East
and Africa, according to Dealogic.
The top four positions are dominated by U.S.-based banks.
JPMorganChase & Co. holds the top position followed by
Citigroup Inc., Goldman Sachs Group Inc. and Bank of America
Merrill Lynch. Deutsche Bank is fifth.
To bolster its franchise, Credit Suisse has turned to Messrs
Cestar and Welter, who in addition to their new responsibilities,
will retain their positions as chair of the global credit products
commitment committee, and co-head of global consumer products and
retail investment banking respectively.
Mr. Cestar recently worked on the financing for Bain Capital's
$3.2 billion acquisition of the Diversey unit of Sealed Air Corp.
and the financing of CVC Capital Partners' acquisition of Grupo
Cortefiel, a Spanish retailer.
Mr. Welter, meanwhile, advised McCormick & Co. on its $4.2
billion deal this summer to acquire Reckitt Benckiser Group PLC's
food division. He also worked on the merger last year of Nestlé
SA's ice cream business with R&R Group to create Froneri, a
global ice-cream operator.
Mr. Echlin's new role is chairman of U.K. investment banking and
capital markets, while Ms. Drew will become head of the newly
created impact advisory and finance department, which supports the
bank's social investing and philanthropic endeavors.
In another move, Credit Suisse banker Henrik Aslaksen was
appointed executive chairman of Investment banking and capital
markets for EMEA. Mr. Aslaksen joined last year following a 13-year
stint at Deutsche Bank AG where he served as global head of M&A
investment banking.
Write to Brian Blackstone at brian.blackstone@wsj.com and Ben
Dummett at ben.dummett@wsj.com
(END) Dow Jones Newswires
September 18, 2017 10:49 ET (14:49 GMT)
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