Syz Group plans to dispose of its fund range, finews.com has learned. The move is part of a bid to focus on private equity and wealth management instead.
Syz Group sells its Luxembourg-based Oyster funds, which manage 2 billion francs, to French investment firm iM Global Partners, finews.com has learned. A spokesman for Syz confirmed the move but didn't disclose financial details.
Syz's $10 billion business with Swiss institutional clients such as pensions funds, insurances, family offices, led by Daniel Hannemann, will be spun off into a subsidy. Run by Swiss banker Eric Syz, the Geneva-based banking and fund firm will retain 100 percent.
Fund Setbacks
It isn't clear what happens to the remainder of Syz's asset management business, primarily fund of hedge funds. The wider Syz Group had suffered from the poor showing in asset management – specifically, poor performance in European equity, long-only and high-conviction products.
The move underscores the difficulty of competing in a fragmented – and increasingly competitive – market. The fund arm, which is synonymous with the Oyster brand, had experienced an exodus of talent in recent years including head Katja Coudray (pictured above) and executives including Fabrizio Quirighetti or Romain Faraut.
Bahamas Exit
With the disposal, Syz shifts focus to the private market business, Syz Capital, which launched just over one year ago and is run by Eric Syz's son, Marc Syz (pictured above). It is specialized in unlisted investments including private equity, special situations, and litigation financing.
Syz also plans to give up a bank it maintains in the Bahamas, via a management buyout of two top executives there, finews.com has learned. Syz plans to maintain an office in Miami, from which it seeks Latin American business.
Succession Plans
Last year, 63-year-old founder Eric Syz ceded the CEO seat to Yves Gaillard. The move sets into motion a succession plan first raised by the Swiss banker himself, who remains CEO of a holding company devotes himself to the group's strategy.
Syz's wealth management arm is run by younger son Nicolas Syz. One of the two brothers is widely expected to take over from Eric Syz eventually.
