UBS Fund Holds 30% Exposure Linked To First Brands

2025-10-08 02:09:42

(MENAFN- Swissinfo) A UBS fund has 30% of its portfolio tied to the failed First Brands Group, leaving Switzerland's largest bank grappling with a bankruptcy that has convulsed global finance. This content was published on October 8, 2025 - 10:05 6 minutes Robert Smith and Julie Steinberg in London, Olaf Storbeck in Frankfurt and Mercedes Ruehl in Zurich, Financial Times

Clients are braced for big losses after UBS O'Connor, a private credit and commodities specialist owned by the Swiss bank, revealed that 30% of the exposure in one of its funds is tied to the auto parts group.

O'Connor recently told investors in its“Opportunistic” working capital finance strategy that the fund had 9.1% of“direct” exposure – financing facilities based on invoices First Brands' was due to pay – and 21.4% of“indirect” exposure – based on invoices its customers were due to pay.

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Overall, UBS has more than $500 million (CHF400 million) of exposure to First Brands' debt and invoice-linked financing, across various parts of its investment arm, according to bankruptcy filings.

UBS is just one of many investors to be hurt by the implosion of the Ohio-based industrial business, which has raised broader questions about the dangers lurking in the booming private credit market.

Some of the biggest names on Wall Street such as Blackstone had exposure to First Brands debt, while less known financing firms, such as Utah-based leasing specialist Onset Financial, are also deeply embroiled in the fiasco.

For UBS, the fallout over First Brands threatens to engulf the highest echelons of Swiss banking in a fresh crisis relating to invoice finance, nearly five years after the implosion of Greensill Capital rocked Credit Suisse.

UBS later rescued Credit Suisse from the brink of failure in 2023 and is still dealing with a raft of legacy litigation relating to the Greensill scandal.

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