Qatari Royal Is Among Investors Exposed in Credit Suisse Supply-Chain Funds
(Bloomberg) - The former Qatar Prime Minister is one of the wealthy Middle Eastern investors exposed to Credit Suisse Group AG's troubled supply chain finance funds, according to people familiar with the matter.
Vehicles related to Sheikh Hamad bin Jassim Al Thani invested approximately $ 200 million in the funds, bought loans from Greensill Capital, the financial firm that collapsed in early March affair.
It is unclear how much Sheikh Hamad, also former head of Qatar's sovereign wealth fund, will lose, and preliminary estimates of his involvement may change. Credit Suisse and Sheikh Hamad representatives declined to comment.
The bank is in a difficult position as it tries to maintain relationships with high net worth clients while keeping investors paying the bill if it cannot get back the full amount of the loans held in Greensill affiliated funds. Of the $ 10 billion managed by the funds, Credit Suisse had sold more than $ 1 billion through its private banking arm in the Middle East, Bloomberg previously reported.
The Swiss lender has been closely associated with Qatari investors for years and has a longstanding relationship with Sheikh Hamad. During his tenure as head of the Qatar Investment Authority, which ended in 2013, the SWF became one of the largest shareholders in the Swiss bank and appointed Credit Suisse to advise on some high profile deals.
In 2012 they founded an asset management joint venture called Aventicum Capital Management. Sheikh Hamad is also involved in Deutsche Bank AG.
Last month, Credit Suisse froze its Greensill funds and began liquidating investments when Lex Greensill's firm filed for bankruptcy. The supply chain finance funds hold more than $ 1 billion in debt related to the GFG Alliance of Sanjeev Gupta, a metal group in danger of collapse, and hundreds of millions of debt securities to other companies that have not yet been issued Sales are hedged.
The bank plans to move hard-to-value assets into side pockets while returning cash to investors. In March, the company paid $ 3.1 billion and said it would make another payment by mid-April.
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