UPDATE 1-Credit Suisse to sell private equity business -sources


July 31 (Reuters) - Credit Suisse Group AG is in advanced talks to sell a private equity business to Grosvenor Capital Management LP as the bank adapts to stricter rules for managing capital and risk, a person familiar with the matter said on Wednesday.

The deal, to be valued at more than $200 million in cash and other considerations, could be announced as early as this week, the Wall Street Journal earlier reported.

A Credit Suisse spokeswoman declined to comment while a Grosvenor representative was not immediately available for a comment.

The business, called Customized Fund Investment Group, oversees about $20 billion in client assets invested in third-party private equity funds. Chicago-based Grosvenor Capital is a privately owned investor in hedge funds with $23 billion in client assets.

Like other investment banks affected by new regulations on capital requirements and investment activities, Credit Suisse has been shedding businesses it now sees as non-core.

In April, it announced it would sell its secondary private equity business, which buys and sells stakes in private equity funds and has $9 billion in assets under management, to Blackstone Group LP, part of an effort to boost capital by 15.3 billion Swiss francs ($16.25 billion) after a call from the Swiss National Bank.

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