Credit Suisse has signed an agreement to acquire a majority interest in Hedging-Griffo for SFr358 million in cash. The Swiss bank will a...

Credit Suisse has signed an agreement to acquire a majority interest in Hedging-Griffo for SFr358 million in cash. The Swiss bank will acquire a 50 per cent stake in Hedging-Griffo, plus one share, which corresponds to approximately 9.5 times current year earnings. Under the terms of the transaction, the parties have entered into an option arrangement whereby Credit Suisse may acquire, and the current shareholders may sell, the remaining stake in Hedging-Griffo after five years. The transaction is subject to approval by the Central Bank of Brazil and is expected to close by the middle of 2007. Upon closing, Hedging-Griffo will operate as Credit Suisse Hedging-Griffo. All the partners of Hedging-Griffo have signed long-term contracts with Credit Suisse. Hedging-Griffo is an independent asset management and private banking operation serving the high-growth Brazilian market. It manages SFr9.2 billion for high-net worth individuals in Brazil and over the past three years assets under management have increased at an average annual growth rate of 38.5 per cent. The company focuses on hedge funds, equity funds, and fund of funds domestically and internationally. Anthony DeChellis, managing director and head of Private Banking Americas for Credit Suisse said: "We are committed to growing our onshore private banking presence in Brazil, a core market for Credit Suisse. Hedging-Griffo is the right partner with which to join forces to serve high-net worth and ultra-high net worth individuals in the country. In addition, Hedging-Griffo's industry leading asset management business is highly complementary to Credit Suisse's asset management operations in Brazil." Credit Suisse has operated in Brazil since 1990 and through its Investment Banking operations, Banco de Investimentos Credit Suisse (Brasil).