UBS announced on Wednesday that it was postponing the spin-off of its private equity arm, UBS Capital, citing challenging short-term conditions for the decision. It said the volatility of the market made it an inopportune time for building a brand and raising the necessary funds for launching an autonomous management company.
The decision comes after UBS Capital made a loss of SFr282 million ($158.5 million) in the first three months of the year under the leadership of Pierre de Weck. UBS said on Wednesday that de Weck is to leave the company by mutual agreement at the end of July.
UBS Capital will for now remain part of the UBS Warburg business group headed by Markus Granziol. A management shake-up is also being planned.
UBS Capital specialises in investments in companies not listed on the stock exchange. Its portfolio has a book value of SFr5.7 billion.
swissinfo with agencies