Credit Suisse has agreed to sell its JO Hambro Investment Management business, with assets of around £3.6 billion ($4.61 billion), to Bermuda National Limited, a deal coming a few days after the Swiss bank agreed to buy part of Morgan Stanley’s international wealth management business.

Credit Suisse has agreed to sell its JO Hambro Investment Management business, with assets of around £3.6 billion ($4.61 billion), to Bermuda National Limited, in a deal coming a few days after the Swiss bank agreed to buy part of Morgan Stanley’s international wealth management business.

There had been speculation for some time that Credit Suisse, which has been restructuring part of its business operations, might spin off the JOHIM business, which employs over 100 staff including 25 portfolio managers. Credit Suisse has owned the JOHIM business for 12 years. 

The transaction is subject to regulatory approval.

In October last year, Credit Suisse sold its London-based Clariden Leu (Europe) business to Falcon Private Bank. On the other hand, this week it announced it had bought the EMEA private wealth management business of Morgan Stanley.  

In the latest move, the acquirer of JOHIM is a Bermuda-listed financial services holding company created to own financial institutions, including banks and investment advisory businesses.  Its major investor is Utilico which is a UK listed international investment group with a diversified portfolio of businesses.

BNL intends to retain JOHIM’s management team, the client relationship focus and its investment process, according to a statement.

“The acquisition also allows JOHIM’s existing management continued autonomy in managing its business and the opportunity for the management and staff of JOHIM to become shareholders alongside BNL,” it continued.

“There are no plans to change our people, business model or investment process,” Hugh Grootenhuis, CEO of JOHIM, said.

“We are very excited about the future and welcome BNL as our new majority shareholder who offers opportunities for us to continue to grow the business, including in areas where we would otherwise not have direct access, such as in emerging markets, where for example Utilico has significant investments.  The change of ownership has been made with our clients’ interests uppermost in our minds to ensure the right deal both for our clients and for all the staff at JOHIM,” he said.

Warren McLeland, chairman of BNL, said: “It is expected that the acquisition will provide a number of synergies across the group. BNL continues to be offered opportunities in the financial services sector and we believe that JOHIM is proof of the type of investment opportunities currently available. We are delighted that the management and staff of JOHIM are investing alongside BNL and we look forward to working with them to seek to grow JOHIM.”

Phil Cutts, chief executive of Credit Suisse (UK), added: “As an independent subsidiary, JOHIM has delivered real value to our clients through the duration of our 12 year partnership and we look forward to collaborating with them in the future.  The UK continues to remain a key market for Credit Suisse.”