UBS Group AG UBS and Apollo Global Management Inc. APO have put pen to paper, bringing to a close the Transition Services Agreement with ATLAS SP, a business carve-out from Credit Suisse.

In a strategic move, Apollo is set to acquire senior secured financing facilities totaling $8 billion from UBS, while the bank moves to terminate its Investment Management Agreement with Atlas.

This milestone forms a key part of UBS’ overarching strategy to streamline its Non-Core and Legacy (NCL) portfolio, shedding risk-weighted assets and reducing the leverage ratio denominator within NCL.

Through these pivotal agreements and the transfer of senior secured financing facilities, UBS anticipates recognizing a net gain of approximately $0.3 billion in the first quarter of 2024.

However, it is anticipated that Credit Suisse may face a net loss of around $0.9 billion as a result of these agreements.

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In a statement, Sergio P. Ermotti, CEO of UBS, remarked, “We are gratified by this mutual accord. As we progress in our integration plans, this stands as another instance of our unwavering dedication to collaborating with clients and counterparties to release capital tied up in Non-Core operations, all while cutting costs and untangling complexity.”

Echoing this sentiment, Apollo CEO Marc Rowan stated, “We are thrilled to finalize the Atlas transition alongside UBS, in a financially neutral manner for our organization. This crowns a quarter marked by record origination and capital raising for Atlas, with an impressive $24 billion in originations since inception and secured capital to bolster over $40 billion in client assets.”

Market Movement: UBS shares show a 0.47% increase, trading at $31.30 as of the latest update on Wednesday.

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