Investor exists Credit Suisse Funds

Wednesday 22 July 2020 11:08 CET | News

SoftBank has pulled a more than USD 500 million investment from Credit Suisse’s supply chain finance funds. 

Some of the funds’ investments were in notes backed by loans Greensill made to other companies backed by SoftBank’s Vision Fund. Credit Suisse said that around 15% of the notes now held by its funds were backed by the obligations of companies in which the SoftBank Vision Fund has minority equity stakes. In a memo to the funds’ investors, Credit Suisse said it would change investment guidelines for its supply chain finance funds and said it had terminated an agreement with an investor in April 2020 for three of its four supply chain funds to source all of their notes through Greensill.

As payment delays may cause cash-flow problems for their suppliers, supply chain finance such as that provided by Greensill allows suppliers to collect on invoices early in exchange for a fee. Greensill will then collect on the value of the invoice from the buyer. Credit Suisse said that while in practice all the funds’ investments had previously been sourced via Greensill, they were not precluded from sourcing them elsewhere.

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Keywords: Softbank, Credit Suisse, supply chain finance, SCF, loans, Greensill, Vision Fund, payments , invoice
Categories: Banking & Fintech
Countries: United States
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Banking & Fintech

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