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Greensill’s problems came to a head Monday after Credit Suisse’s asset-management arm said it would stop allowing investors to buy into or sell out of four private investment funds that rely exclusively on debtlike securities created by Greensill. A part of the funds is “currently subject to considerable uncertainties with respect to their accurate valuation,” according to a notice the bank sent to investors. The Wall Street Journal reported Sunday that the bank was concerned about Greensill’s exposure to a single client, U.K.-based steel magnate Sanjeev Gupta.
Credit Suisse’s move to cut off the Greensill funds comes at a challenging time for the financing upstart. Greensill had anticipated extending $173 billion in financing last year, according to a presentation viewed by the Journal, but ultimately provided $143 billion, flat from the year before. Several Greensill clients hit financial troubles last year, while companies it partnered with loosened ties.
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