Three family-owned private banks in Geneva will pool their private fund resources. Their goal? To manage several billion Swiss francs in the medium term.
Bank Pâris Bertrand Sturdza, Bordier and Reyl said they will cooperate on a platform for private equity, private debt, and private real estate funds. Tie-ups between Geneva's secretive family-owned banks are rare as hen's teeth, and true to their discreet ways, the three banks didn't disclose financial specifics of the venture.
The move is an admission that each of the banks – which are controlled by their founders or descendants – don't have the firepower alone to successfully provide the type of tailor-made products and opportunities that are increasingly popular with their wealthy clientele.
The entity, Hermance Capital Partners, was set up two years ago by Sturzda, but will now be equally owned by the three banks and run by Jacques Chillemi (pictured above), head of private equity at Sturzda.
New Partners Welcome
Hermance will look for and invest in non-listed assets on behalf of private banks, family offices and independent wealth managers, the three banks said. The firm will look at private equity, private real estate and private debt, available in primary or secondary market transactions, co-investments or direct investments.
Hermance said it is open to adding further partners from Switzerland or Europe to the venture, which aims to manage several billion Swiss francs in the mid-term. Chillemi will run a team of private equity, mergers-and-acquisitions and private banking specialists with collective experience investing in over 150 funds, 40 co-investment or direct investments, and more than 20 secondary market transactions.
February Fund Launch
Hermance currently offers a private real estate debt fund for small- and mid-sized U.S. buyouts. It plans to roll out a European buyout fund this month as well as a direct investment vehicle, towards six strategies in total.
«Our collaborative mindset is that we can do more together than by ourselves, and joining forces guarantees success by granting global access to high-value private equity investments that would be inaccessible to small and midsize investors without this platform,» said CEO Chillemi, formerly Pictet's head of private equity.
