The asset management arm of Credit Suisse has announced plans to return $400m to investors in a suite of supply chain finance funds it was forced to close earlier this year — bringing the total amount it has paid back to investors to more than $6bn.
In a 27 September update on its website, Credit Suisse Asset Management said around $350m was ready to be distributed to investors in the Credit Suisse (Lux) Supply Chain finance fund this week, while $50m would be paid to investors in the Credit Suisse Nova (Lux) Supply Chain Finance High income fund.
Between March and August, the asset manager had paid out $5.9bn to investors in four instalments. The latest distribution will bring the total amount returned to investors in the funds to approximately $6.3bn.
“The remaining liquidation proceeds will be paid out to investors as soon as practicable in one or more instalments,” Credit Suisse said in an update on its website.
Credit Suisse Asset Management was forced to liquidate four supply chain finance funds overseeing $10bn in March after concerns that they were over-exposed to one of Greensill Capital’s clients — steel magnate Sanjeev Gupta.
The Swiss asset manager made the decision to suspend and then terminate the funds because of the valuation uncertainty of some of their investments, the reduced availability of insurance coverage for new investments and the challenge of finding suitable investments.
Credit Suisse has taken drastic steps to address the fallout from Greensill, replacing its veteran head of asset management Eric Varvel in April with former UBS executive Ulrich Körner.
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