Credit Suisse Group AG (CSGN.S) is marketing its First Boston investment banking unit to investors as a “super boutique” and sees revenue surging to as much as $3.5 billion, as the embattled lender seeks to raise funds for the revamped business, a company document seen by Reuters shows.
The marketing presentation, which has not been previously reported, shows the Swiss bank is betting on an aggressive rebound at CS First Boston (CSFB) after revenue plunged 69% in 2022.
In the sales pitch to investors, dated January, the bank said it aspires to surpass the $2.5 billion net revenue target it set out only last October for the unit, taking into account that the business will be independent and assuming “a normalized market environment.”
The bank also lays out in greater detail its reasoning for the restructured division’s competitive edge in a crowded investment banking market. CSFB, the presentation said, would be a “super boutique”, more focused than large banks but broader than advisory firms that do not offer services such as financing.
The pitch to investors comes as the deals market posted a marked slowdown last year that hit many Wall Street firms, with bankers projecting a slow start to the year.
The marketing presentation, which includes detailed terms for its $500 million capital raise, reveals for the first time that the Swiss bank is looking to raise the funds through a five-year exchangeable debt security, paying 6% annual interest.
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