A Swiss boutique is buying Vontobel's hedge fund arm. The move is part of a streamlining of the Swiss bank's asset management activities.
Progressive Capital Partners is buying the hedge fund arm of Zurich-based Vontobel, it said in a statement on Friday. Financial details of the deal, which follows a real estate disposal by Vontobel in June, weren't disclosed by either party.
At Progressive, the boutique, which targets Swiss pension funds with alternative assets, will be run by Ilario Scasascia (pictured below) from December. The deal adds roughly $300 million in assets to Progressive's $480 million, a source familiar with the deal structure told finews.com.
Whittling Fund Arm
The move, first reported by trade outlet «Citywire,» represents a further streamlining of Vontobel's heavyweight asset management arm. The unit drives the Swiss bank's profits, contributing 86 million Swiss francs ($86.5 million) in profits before taxes, compared to 55 million francs from wealth management in the first six months.
A ten-year veteran of Vontobel, Scasascia will lead a three-person team moving to Progressive. In June, the Swiss bank sold part of its real estate investment activities in a management buyout.
