The Credit Suisse/Gerson Lehrman Group Alliance

Posted: 21 May 2009

See all articles by Robert G. Eccles

Robert G. Eccles

University of Oxford - Said Business School

Laura Winig

Harvard Business School, Global Research Group

Date Written: March 5, 2009

Abstract

The equity research department of Credit Suisse and the expert network firm of Gerson Lehrman Group, historically competitors, have established a strategic alliance which both believe will give them a competitive advantage. Under the leadership of its head of equity research, Stefano NateIIa, Credit Suisse has responded to the continuing pressures on the sell-side research function with a focus on making it a revenue center. One pressure on sell-side research is the introduction of alternative business models for providing sell-side research, such as from expert networks like the Gerson Lehrman Group (GLG). GLG has established a network of nearly 200,000 experts who provide advice to institutional investors in a different way which emphasizes private consultations with these experts about questions of very specific interest to the investor. Natella and Saint-Amand have agreed to a two-year alliance which gives the analysts at Credit-Suisse access to the experts in GLG's network, as a way of improving the quality of their research. Credit Suisse can also get additional revenues by placing its analysis in the GLG network, although under some severe constraints. GLG gets additional revenues from its contract with Credit Suisse and from introductions to other potential clients that Credit Suisse will make. It also grows its network from the addition of the analysts at Credit Suisse. The alliance has been announced just before the financial markets began their meltdown in October of 2008, and both Natella and Saint-Amand are wondering what this means for the future of the alliance.

Suggested Citation

Eccles, Robert G. and Winig, Laura, The Credit Suisse/Gerson Lehrman Group Alliance (March 5, 2009). HBS Case No. 409-046; Harvard Business School Organizational Behavior Unit Paper No. 1408061. Available at SSRN: https://ssrn.com/abstract=1408061

Robert G. Eccles (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Laura Winig

Harvard Business School, Global Research Group ( email )

Greenhill House
Soldiers Field
Boston, MA 02163
United States

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