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(Bloomberg) -- Credit Suisse Group AG established a new unit catering to institutional clients and the ultra rich at its Swiss universal bank after abandoning plans for an initial public offering of the division earlier this year.

The investment advisory & solutions unit will provide “customized investment solutions and services to institutional clients, UHNWI clients and family offices,” the bank said in a statement on Tuesday. Reto Hossli, who previously oversaw the external asset managers in Switzerland for which Credit Suisse acts as a custodian, will be in charge of the new unit.

Credit Suisse’s Swiss universal bank, which offers wealth management, asset management and investment banking, was earmarked for a potential IPO earlier this year as the Zurich-based bank considered options to plug a capital shortfall. The bank decided instead to raise capital and keep the entire unit, which posted record pre-tax profit in the second quarter.

The unit, led by Thomas Gottstein, is forging ahead with job cuts and considering acquisitions as negative interest rates pressure its business. The Swiss Universal Bank reported 502 million francs in pretax profit in the second quarter, an increase of 11 percent compared to the previous year.

Hossli will be succeeded in his role as head of external asset managers in Switzerland by Dominik Münchbach, who previously led the external asset managers unit in Europe within Credit Suisse’s international wealth management division. Andreas Oggier will assume those responsibilities.

Credit Suisse’s Swiss unit has 800 external asset managers as clients for which it acts as a custodian. While the bank says that the external-asset managers market is a “core pillar of the Swiss financial center” Gottstein has been cutting ties with many to reduce risks.

To contact the reporter on this story: Jan-Henrik Förster in Zurich at jforster20@bloomberg.net.

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Christian Baumgaertel

©2017 Bloomberg L.P.

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