TSSP, the special situations vehicle of private equity firm TPG, has snapped up $1.27 billion worth of credit assets from Swiss investment bank Credit Suisse.
Of the total paid out by TSSP, $1.24 billion consists of distressed debt and the remaining $300 million is other assets undisclosed by the firms. The distressed debt assets acquired by TSSP comprises 270 deals involving around 170 companies.
In March, the struggling Swiss bank announced it was exiting the distressed debt environment, selling its portfolio of high-risk investments at a write-down of $99 million. The latest deal sees a further charge of $100 million as part of its overall strategy to create a business model with lower risk appetite and reduced volatility.
Both firms declined to provide further details of the transaction.
On Tuesday, 10 May, the Swiss bank will provide a full update on its distressed debt portfolio.
Clint Kollar, partner at TSSP, said: “This transaction leverages our global team’s ability to provide speed, certainty and value to financial institutions and other sellers in complex situations. The portfolio we are acquiring has deep, long-term potential and fits well with our patient and flexible capital.”
David Miller, co-head of Credit Suisse’s credit product business, said: “The successful completion of this transaction with one of our highly-valued clients demonstrates the significant progress we are making on our strategic goals.”
Credit Suisse is seeking to cut losses in order to find savings of around SFr4.3 billion (€3.9 billion; $4.5 billion) by 2018. The bank has set itself a target of saving SFr1.7 billion in costs by the end of this year. Since October, the bank has been offloading assets from its distressed book, which is managed by Credit Suisse Asset Management. As part of its savings drive, the bank is set to cut 6,000 jobs in total.
TSSP invests in global credit and special situations. It was established in 2009 by chief investment officer Alan Waxman and holds around $19 billion of assets under management. It prides itself on having a long-term approach to its investments and deploys capital in both distressed assets and healthy companies.