Dillon Read Capital Management

Dillon Read Capital Management (DRCM), UBS’s new alternative investment management business, is now a part of Global Asset Management. The business, built within the Investment Bank over the last eight years, provides a platform for UBS to build another globally competitive alternative investment management business.

The core of DRCM’s business is formed by the principal finance, credit arbitrage and commercial real estate businesses that had previously been part of the fixed income, rates and currencies area of the Investment Bank. To date, DRCM has been solely managing UBS money.

Parts of the costs related to the transition of DRCM into Global Asset Management were carried by the Investment Bank, which has also made an investment commitment to DRCM. The trading revenues on assets of the Investment Bank managed by DRCM will continue to be recorded on the Investment Bank’s fixed income, rates and currencies revenue line. DRCM will carry on charging the Investment Bank for provision of investment management services. Those charges will be reported in the “Services to / from other business units” line in Global Asset Management.

DRCM personnel and general and administrative expenses are already booked in Global Asset Management, as well as the investments in its establishment. Global Asset Management expects to receive performance-based revenues from DRCM’s external investor investment management business.