The logo of Swiss bank Credit Suisse in Zurich, Switzerland. Picture: REUTERS/AMD WIEGMANN
The Zurich-based lender, a frequent adviser on deals across Jack Ma’s empire, made the equity investment during Ant’s 2018 fundraising, which valued the company at $150bn. Credit Suisse stands to make paper gains on the previously undisclosed investment if the offering gets a strong reception. One estimate from Bernstein projected Ant’s valuation at $210bn, meaning a 40% increase from the earlier investment level.
Credit Suisse joins a growing number of banks from Goldman Sachs Group to China International Capital in investing in private companies, particularly those in the technology sector. The investments hold the promise of generous returns at a time of intensifying competition and thinning fees for underwriters. Credit Suisse has also invested in L&P Cosmetics in Korea and Hero Fincorp in India.
Ant is leaning towards giving Credit Suisse the smaller role of joint global coordinator for its Hong Kong IPO after the bank was left off an initial list of sponsors for the deal, people have said.