On February 8, 2017, Credit Suisse launched a new mortgage fund "Swiss Mortgage Fund I" (the Fund) which is authorised by the Swiss Financial Market Supervisory Authority FINMA and managed by independent asset manager Tavis Capital AG (Tavis). The Fund allows qualified Swiss investors to invest in a portfolio of income producing real estate mortgage loans originated by Credit Suisse.

Under the terms of the transaction, Credit Suisse (Schweiz) AG will periodically offer mortgage loans which match a set of pre-defined criteria to the Fund. Tavis then selects the mortgages in which the Fund will invest according to the Fund's investment strategy.

The innovative structure involving a combination of sub-participation and assignment of the so selected mortgage loans to the Fund allows Credit Suisse (Schweiz) AG to transfer the risks and returns of the mortgages, thereby relieving its balance sheet and allowing for more flexibility in respect of the management of its capital base. At the same time, it gives qualified investors the opportunity to invest in a broadly diversified portfolio of Swiss mortgage loans originated by Credit Suisse.

Homburger advised Credit Suisse (Schweiz) AG on all legal and tax aspects of the sale and transfer of the risks and returns relating to mortgage loans to the Fund.

The Homburger team included partners Stefan Kramer (Financial Services) and Dieter Grünblatt (Tax) as well as associates Vanessa Isler and David Borer (both Financial Services) and Ralf Imstepf (Tax).