Closing Chapter: UBS And Apollo Wrap Up Agreements, Marking Carve-Out Of Former Credit Suisse Business
Portfolio Pulse from Lekha Gupta
UBS Group AG (NYSE:UBS) and Apollo Global Management Inc. (NYSE:APO) have finalized agreements marking the completion of the carve-out of a former Credit Suisse business. UBS sold $8 billion in senior secured financing facilities to Apollo and terminated its Investment Management Agreement with Atlas. This move aligns with UBS's strategy to simplify its Non-Core and Legacy portfolio, aiming to reduce risk-weighted assets and leverage. UBS anticipates a net gain of $0.3 billion in Q1 2024 from these transactions, while Credit Suisse is expected to face a $0.9 billion net loss. The deal is seen as a step towards reducing costs and complexity for UBS, while Apollo views it as economically neutral, capping off a quarter of record originations and capital raising for Atlas.
March 27, 2024 | 5:27 pm
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POSITIVE IMPACT
UBS finalizes deal with Apollo, selling $8 billion in financing facilities and expecting a $0.3 billion net gain in Q1 2024. The move is part of UBS's strategy to simplify its portfolio and reduce leverage.
The completion of this deal with Apollo is likely to be viewed positively by investors as it aligns with UBS's strategy to reduce complexity and risk in its portfolio. The anticipated net gain of $0.3 billion in Q1 2024 further underscores the financial benefits of this transaction.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Apollo Global Management Inc. finalizes deal with UBS, purchasing $8 billion in senior secured financing facilities. The transaction is considered economically neutral for Apollo, following a quarter of record originations and capital raising for Atlas.
While the deal is significant in terms of the assets involved, Apollo's CEO has described the transaction as economically neutral for the firm. This suggests that while the deal is important, it may not have a direct short-term impact on Apollo's stock price, but it reinforces Apollo's capability in managing large transactions and could positively influence investor sentiment.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80