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When do you expect that to be concluded?

We expect the remainder of the 246 Raiffeisen banks to be fully migrated by end of this year, or early 2019. We can’t declare victory yet, but it will be remarkable for a Swiss tech company to accomplish this – a U.S. company couldn’t have done this.

What will happen with the Arizon joint venture between Avaloq and Raiffeisen?

Our expectation is that at some point after the migration, the ownership of Arizon transfers to Avaloq. For us it makes a whole lot of sense, and it’s also what the contract between us says.

What are your second-year priorities?

We’re still going to have headwinds from the run-off of BSI [which fell away as an Avaloq client after it was acquired by EFG International].

«The ways of the past are settled»

I think it’s really getting the new team rolling in the right direction. The biggest key for us right now is delivering for clients.

Avaloq has a patchy record on that. How will the new management win back credibility?

We need to convince the world that the ways of the past are settled. There are a lot of data points in the past 18 months which point towards that. Apobank was a very big test case for Avaloq: after we lost BHF, people said we’d never win a client of that stature in Germany again, but we have and we are delivering for them.

What about product strategy?

The product will be much more modular, for instance by enabling banks to connect with third-party fintech solutions through our open APIs. Avaloq has always been soup-to-nuts – and it used to be «take it or leave it.»

«Good pipeline for 2019, including a dream client»

 We’ll be working really hard in the next one to two years on offering a product that is a bit more a la carte. If you just want appetizer and main course, but no dessert, that’s fine.

How does your pipeline for the coming year look in terms of new client wins?

We have a good pipeline for the coming year. It’s a combination of elephants, one whose name I cannot say but would be a dream client which we’re very advanced with, and a handful of mid-sized clients.

What’s Warburg Pincus’ view on an exit through an IPO or other means?

We focus less on the exit: if you build a great business, there are lots of exits. If not, you’ll be stuck. For now, the execution is key. But somewhere in the timeframe of 2021, 2022, or 2023 feels reasonable.

Daniel Zilberman represents Warburg Pincus on Avaloq's board after the private equity firm bought a 45 percent stake in the Swiss banking software firm last year. Based in London, he has been European head of Warburg Pincus since 2016. Zilberman previously worked for Evercore Capital Partners and Lehman Brothers. He studied international relations at Tufts University and holds an M.B.A. in finance from The Wharton School at the University of Pennsylvania.