UBS Offers to Redeem Funds Linked to 2021 Greensill Collapse

UBS Group AG has announced that it will provide investors in Credit Suisse funds affected by the collapse of Greensill Capital with a significant portion of their investment back. This move is part of UBS’s efforts to address the lingering issues left behind by its former rival.

As per UBS’s statement on Monday, investors in the Credit Suisse Supply Chain Finance Funds will have the option to redeem their investment at 90% of the net asset value starting from February 25, 2021. The redemption offer will be available until July 31.

The collapse of a $10 billion group of supply chain funds linked to Greensill Capital in 2021, along with the meltdown of Archegos Capital Management, played a crucial role in the downfall of Credit Suisse in 2023. UBS acquired Credit Suisse through a government-supported rescue initiative.
According to a statement from UBS, the aim of the offer is to provide fund investors with certainty, a quick exit from their positions, and a high level of financial recovery. Compared to the ongoing recovery process, this offer will allow for an early exit from fund investments.

Last year in February, Credit Suisse announced that it had fully reimbursed investors in two out of four funds associated with Lex Greensill’s failed supply-chain finance company.

UBS stated that its operating unit, UBS AG, anticipates making a provision of approximately $900 million in relation to the offer, which will be recorded in the second quarter.

The statement also mentioned that UBS AG is not expected to be significantly impacted on a standalone basis.