Klein, who was on Credit Suisse’s board of directors until late last year, has also been appointed CEO of Banking and CEO of the Americas, in addition to being CEO designate of First Boston.
Credit Suisse Group announced that it will buy Michael Klein’s investment banking boutique as it brings in the veteran dealmaker to lead the spinoff of its First Boston unit.
The Swiss bank said the purchase price is US$175 million ($231.9 million), with the full consideration valued at $210 million, to take over The Klein Group. The sellers will get cash, as well as a convertible note and warrants that will become equity in CS First Boston, which is being prepared for a spinoff or public offering by the end of 2024. Klein, a former Citigroup executive who has advised on many of the biggest global transactions, is expected to help recruit star dealmakers and attract investors as the Swiss firm works to carve out its investment bank. After a string of losses, it is seeking to focus on areas of traditional strength such as capital markets, advisory and the leveraged finance businesses.
